Dynamic Multi Sourcing in “As-a-Service Economy” - A foundation for ITaaS

As more and more products and services start becoming available in pay-per-use utility-based consumption models, the real commoditization and consumerization of IT is becoming a reality. Sourcing patterns are changing from “buy” to “subscribe”, with the ability to source fast, fail fast and migrate fast between service providers. This gives the flexibility and agility that Developers, Architects and Business Users need in this Digital era.

This trend is impacting enterprises in the following ways:

As public cloud providers make this simpler, business units find it flexible and easy to source independently from these cloud providers. Enterprise IT is losing control and Shadow IT is now emerging. This causes Security, Manageability and Integration challenges.
The Finance function finds it difficult to reconcile IT expenses across different providers as the IT spend happens through different channels.
The Procurement function have started seeing too many players in the market, causing delays due to long cycles of vendor evaluation, selection, negotiation and contract governance.
IT Architects are having to design different architecture patterns as they have to move Services across providers.

So what do enterprises need today? Enterprises need a universal marketplace where all the requirements of IT can be sourced as-a-service from public and managed private cloud providers as well as receive a single bill of IT and scale up and down based on the business demand. They need a partner who can aggregate and arbitrate services across different providers and add intermediary services customized to their requirement.

Traditionally, global system integrators had been integrating products and services from multiple suppliers to design tailored solutions specific to customer’s requirements. In the process, there is immense knowledge about the supplier ecosystem and how integrations and management would work across different IT systems. So how does this work? On a continuous basis, global system integrators evaluates new offerings from existing partners, recruit new partners, benchmark and provide positioning recommendations for customers. This knowledge combined with API-enablement of service providers makes it easier for global system integrators to be the universal marketplace partner for enterprise customers by aggregating offerings from different providers, intermediating technology, managed services and contracts management and arbitrate the best-fit provider on an on-going basis. And for customers, they would be able to browse offerings, compare suppliers, subscribe to the services, pay per use or migrate to alternate suppliers as business demands change.

To make it happen, Global System Integrators constantly updates the catalogue with standardized, parameterized blueprints and packaged services. They also manage end-to-end contracts with all suppliers in the backend and provide the customer with a single bill of IT, thereby helping them cut costs and time delays involved in evaluation, negotiation, contracts governance and so on. All this, in “as-a-Service” utility model.

About the Author

Govindaraj Rangan (Govind) is the Head of Datacenter Innovation Office, part of Datacenter Practice at Wipro Limited. He has 19 years of industry experience across the breadth of the technology spectrum - Application Development to IT Operations, UX Design to IT Security Controls, Presales to Implementation, Converged Systems to Internet of Things, and Strategy to Hands-on.

Prior to Wipro, he spent over 10 years at Microsoft as Technology Strategist, working with some of the large Enterprise customers in India. He has also worked in the CIO/CTO organizations of Texas Instruments, Automatic Data Processing, D. E. Shaw & Co. and PCL Mindware.

He has an M.B.A. from ICFAI University specializing in Finance, M.S. in Software Systems from BITS Pilani and B.E. (EEE) from Madras University. Professionally, he is MCSE, CISSP, PMP, ITIL Foundation certified.

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