Service Providers, Enterprises Scramble for Footing as Cloud and Software-Defined Models Unsettle IO Industry
DALLAS, JUNE 23, 2014 — The global Infrastructure Outsourcing (IO) market—measured at ~US$165 billion in 2013—is experiencing unprecedented disruption as new information technology models leave enterprises and service providers alike searching for solid strategic direction.
Though cloud services tend to capture the majority of the headlines, a real disruption is brewing due to the still nascent concept of software-defined infrastructure. Enterprise buyers and service providers will need to rethink their infrastructure consumption models, which, in turn, will impact people, processes, and technology. An interesting challenge will be the “deskilling” and “upskilling” of people. A third major shift in the industry is the rise of Service Integration and Management (SIAM) services as buyers seek partners to manage and mitigate the delivery risks of employing multiple service providers within the infrastructure portfolio.
These findings and more are discussed in a new Everest Group report, Infrastructure Outsourcing – Annual Report 2014: “The Future is Software.”
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“Cloud services and software-defined infrastructure models are rapidly changing the playing field in the Infrastructure Outsourcing market,” said Yugal Joshi, practice director at Everest Group. “Not many providers or enterprises yet understand the impact, nor do they yet have a solid game plan for aligning to these trends. As a result, we’re seeing significant pressure on deal size, duration and pricing on the one hand, and on the other hand a growth in outsourcing and expanded scopes of services.”
Download Publication-Quality Graphics High-resolution graphics illustrating the report’s key takeaways can be included in news coverage, with attribution to Everest Group. Graphics include:
- IO deal sizes declining rapidly
- Consulting in IO contracts rises
- Anti-incumbency is sweeping IO
- Software-defined infrastructure: A revolution for the infrastructure landscape
- Why service integration and management (SIAM) is taking hold.