As enterprises are embracing cloud-based delivery models and increasing their focus on automating core services, traditional IT infrastructure management services are shrinking
DALLAS (PRWEB) December 12, 2017
IT infrastructure transformation is high on the agenda of enterprise buyers as companies realize that an agile and secure IT infrastructure forms the bedrock of their digital initiatives and aggressive growth aspirations, according to Everest Group.
Recent Everest Group research reveals that more than three-fourths (77 percent) of enterprises say buying technology is easy, but making solutions work together is the real issue. Also over 70 percent of enterprises recognize a lack of talent and resources to implement the needed overhaul in their IT approach. It is no wonder, then, that transformation consulting is now central to more than half (52 percent) of all infrastructure services sourcing engagements.
The demand for infrastructure transformation is further amplified by what Everest Group describes as a collapsing of the IT stack. Automation and the integration of emerging technologies are yielding a software-defined, service-oriented IT architecture with agile, outcome-oriented stacks, obviating the functional siloes common to traditional IT. As a result, enterprises are striving to reimagine their IT service model into one where IT functions as a broker of services, the architecture is automation led and cloud native, and service delivery is DevOps oriented.
“We will see this demand for infrastructure transformation reflected in three trends in 2018,” said Yugal Joshi, practice director at Everest Group. “First, enterprises will expect cloud service providers to start functioning as business transformation partners rather than just infrastructure providers. Second, enterprises will expect their IT service providers to help them compare and consume IT infrastructure services that are best suited to their workload requirements; and, third, enterprises will continue to explore open systems as they look to minimize their historical vendor lock-in issues.”
Enterprises and service providers who are seeking to reimagine their IT service model should focus on what Everest Group describes as “The Driving FourS”:
- Structure – Eliminate functional silos and transform the IT function from provider to business enabler
- Skills—Shift focus from functional specialists to talent with multi-disciplinary skill sets who can leverage emerging technology and service concepts to deliver business value.
- Service Metrics—Broaden metrics beyond cost-effectiveness and productivity improvement to include impact on business agility and service resilience.
- Sourcing Models—Leverage best-of-breed providers with the unique skill sets to cater to the evolving technology and services landscape.
Everest Group addresses these anticipated trends and recaps recent developments in the cloud and infrastructure services industry in its recently published report “Cloud and Infrastructure Services – Annual Report 2017 - The Future of Stack is No Stack!" The report features data-driven facts and perspectives on the overall cloud and infrastructure services (CIS) market, including CIS adoption trends, demand drivers, leading players, key buyer initiatives and pricing trends.
Additional Key Findings:
- The global IT services market is expected to grow at a modest rate of 1.5 to 2 percent per year through 2020.
- IT services demand is being generated largely by investments in digital technologies, automation, DevOps, as-a-service models and application modernization; however, spending in these areas is expected to be a redistribution of investments in traditional services, thereby curtailing overall growth projections.
- Cloud and security services will be the fastest growing segments within the global IT services market, with cloud services logging a 24 percent compound annual growth rate (CAGR) and security services seeing a 15 percent CAGR from 2016 to 2020. The traditional datacenter services will experience a 3 percent decline over the same period.
“As enterprises are embracing cloud-based delivery models and increasing their focus on automating core services, traditional IT infrastructure management services are shrinking,” said Ashwin Venkatesan, practice director at Everest Group. “Conversely, we’ll see double-digit annual growth in security services as enterprises move to digital and the talent crunch in this area creates robust third-party service demand.”
***Download a complimentary 12-page abstract of the report.***
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empower clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.
Contact:
Andrea M. Riffle, Everest Group
andrea.riffle(at)everestgrp(dot)com
Jennifer Fowler, Cathey Communications for Everest Group
+1-865-405-6380
jennifer(at)cathey(dot)co