Cloud and Enterprise AppsPosted: July 2, 2014
This is a topic which quite a few of us would have been thinking about … what are the implications of cloud for IT service providers? The reason this question gains importance is because with cloud paradigm, the levers of value for customers become different from what they have been. The days of mega implementations, for example, having 500 people teams working for 4 years to deliver a project are no longer to be seen. With cloud coming into the mainstream of technology, project profiles are changing further. Release cycles are much shorter, with larger number of releases coming out in quick succession. Project lifecycles are much shorter too, as is the scope of development or customization.
One is the fact that it is no longer possible for companies to differentiate themselves on the basis of IT as technology becomes commoditized. The paradox is that when IT was a specialized space, IT was almost an afterthought in organizational strategy, while today is becoming centre-stage in the strategy landscape.
As IT becomes more commoditized and more and more of the technology components in the organization, there is more reason for organizations to oursource more of their IT functions.
For enterprise apps, for instance, the cloud era seems to be one of short implementation lifecycles, far less customization, agile development, and accelerators. This means that for services organizations, this is a whole new paradigm, with the sales folks not keen on selling these engagements as the revenue potential from these is much less, and yet, organizations have more focus on cloud engagements. Services organizations would need to change the engagement model, probably with more shared-delivery in implementation projects, and reducing the distinction between implementation and support engagements from a delivery perspective.