CIOs Must Change Their Technology, Service Relationships
Hybrid IT environments are expected to dominate client IT architectures over the next several years, a report from Gartner found.Major changes will reshape the service provider landscape over the next several years as organizations struggle to adjust to a digital future, according to a report from IT research firm Gartner, which found that 70 percent of CIOs will change their technology and sourcing relationships in the next two to three years for a variety of reasons. Cloud-based infrastructure as a service (IaaS) and business process as a service (BPaaS) are the two fastest-growing segments, expanding 44.9 and 12.4 percent, respectively, in 2014. "IT spending buying centers across industries have steadily shifted away from the central IT function and to business buying centers," Eric Rocco, managing vice president at Gartner, said in a statement. "Service providers of the future will articulate value in business terms such as key process outcomes and impact to key performance indicators (KPIs). Doing so requires deep vertical industry knowledge, and new go-to-market models." Cloud-based services are cannibalizing more traditional models. This is most apparent in infrastructure outsourcing where infrastructure utility services (IUS), managed services based on IaaS technology and cloud IaaS growth include workloads moving from more traditional data center-managed services to IUS and IaaS, respectively.
Hybrid IT environments are expected to dominate client IT architectures over the next several years, underscoring the importance of skills in the old-world legacy environments, as well as the new-world as-a-service operating models, the report noted.