ReadWrite Cloud in its recently posted article “Gartner Survey Reveals How the Cloud is Changing IT Budgets’ says that out of the Gartner surveyed 1587 respondents from 40 countries to gauge the spending trends. ,39% of respondents said they were allocating IT budget to cloud computing including allocating part of the earlier year’s budgets. It further says
- Respondents are increasingly turning to external service providers
- Expected increase in spending for private cloud implementations for internal use (43%) than those that are for external or public use (32%)
- This is yet another trend indicating a shift in spending from traditional IT assets to a move towards assets accessed in the cloud
- The trends indicate a good news for IT services providers that have professional services geared to implementing cloud environments & help delivering cloud services and such providers not gearing up on this opportunity might miss opportunities.
One of the key things to “pick” from the survey information reported in this article is that Bob Igou, research director at Gartner says that this trend marks “a shift toward the ‘utility’ approach for non-core services and increased investment in core functionality.”
I had said this in my earlier blog post . I believe there is a significant opportunity for IT services providers to enable delivering Non-Core, Non-revenue generating applications which would be the so called ‘priority candidates” for moving in to the cloud by Enterprises or Corporates. The information cited here is just a sample trend of what is happening in the emerging industry.
The more volumes of such Non-Core Apps that an IT service provider is able to move at a shorter time, there is a great TCO and ROI proposition that can be made to a client.
Hence, As the trend and volumes of prioritization and moving enterprise’s non core businesses to the Cloud picks up , opportunity beckons the following types of vendors
1) IT service providers who provides innovative software tools or frameworks that can help automate and accelerate moving non-core enterprise apps with minimal resources and cost. Infact creating such assets along with your services can put a company in the premium league in the value chain.
2) ISVs (Independent Software vendors),creating niche cloud migration,provisioning,management,governance tools also stand to benefit from the above
3) Low-cost, Global delivery IT service providers with good cloud computing capabilities and access to resources will stand to benefit a lot. Why ? Simply because, Enterprises looking at moving and maintaining their already non-revenue generating applications to the cloud may not be interested in spending a lot of money again on such transitions.
4) IT Service providers with honed skills in software life-cycle methodologies and best practices that can help enable and migrate large and complex applications.