Hope you are all doing great and enjoying the great cricketing spectacle –the ICC World Cup. In the past 3 blog posts I had dealt with customer questions ranging from IT infrastructure transformation to Journey to cloud and RoI. During my recent interactions with our customers, one question always pops up. How do you think the Infrastructure Management Outsourcing marketplace will develop in the future? Let me pen down my thoughts about this pertinent question and how the IMO space is expected to shape up going forward.
I would like to give 2 perspectives to the future of IMO market, one short term and another long term. In the short term I believe that this market is going to grow, as more and more enterprises need to first outsource, if they want to get the benefits of the next stage of outsourcing options that vendors will have to offer. So many organizations that were in wait and watch mode would now start evaluating the outsourcing options to achieve better cost models, service level improvements, consolidation and standardization benefits. I foresee more and more customers also outsourcing their datacenters as they would want to let go the control to get the benefits of utility model as it matures and not make investments in datacenter upkeep and facilities, which might ultimately be seen as a sunken investment. During this phase existing outsourcers and a few new entrants will tend to gain.
In the long term, the outsourcing vendors will have to develop models to manage the cloud environments, software and hardware on a utility model, billing and metering tools for usage, invest in Datacenter infrastructure. I would compare the future of IT similar to the power industry or telecom, where one needs to own a power station or bandwidth to supply power or telecom services to customers. My belief is that ultimately like any other industry it would lead to vendor consolidation and only few outsourcers with mature datacenter and cloud offerings will survive. But as I said this is a long term view and only time will tell if it’s another 5, 10 or 15 years for companies to achieve the level of maturity in the models and offerings. Also going by the rule book, companies have found alternates to survival, so it will definitely lead to new service offerings from vendors.