Smart Enterprise Magazine

Volume 7, Number 1, 2013

Issue link:

Contents of this Issue


Page 23 of 43

From Supplier to Trusted Partner | By Tam Harbert A s enterprises embrace cloud computing, the role of the CIO is evolving ��� and so is the role of their IT service providers. CIOs are becoming technology and IT supply chain managers. In addition to overseeing the design and implementation of technology, CIOs increasingly source IT services from external providers. Some of these services run on-premises; others, in the cloud. CIOs must orchestrate it all to keep IT aligned with the business. To support this CIO transformation, IT service providers are undergoing a transformation of their own. With much of IT becoming a service, they are moving from low-level suppliers of technology to high-level, trusted partners that provide anything IT-related, but as a service. ���Most of the technologies underpinning IT are coming together, converging into a service-oriented approach to IT,��� says Jim Frey, Managing Research Director at Enterprise Management Associates, an IT analysis and consulting firm. ���It���s an evolution in IT governance and strategy. And for global service providers, it���s a significant opportunity.��� Service companies from all ends of the IT spectrum are broadening their offerings. Some that formerly specialized in providing low-cost offshore labor are now moving into high-end consulting and project management. IT hardware sup�� li�� rs now package their products as pre-integrated p e systems, then install, configure and maintain those systems. Previously, they relied on third-party integrators to do this work. Even telecommunications companies are becoming cloud platform providers and integrators. ���Service providers are being pushed further up the stack,��� says Joe Clabby, Presi�� ent of Clabby Analytics, a technology research and d analysis firm. ���They���re moving to cloud, to provisioning, auto�� mated management, big data services and business analytics.��� David Bradley enjoys a bird���s eye view of this evolution from his position as Senior VP of Global Partners at CA Technologies. 24 What he sees are service providers of all stripes making significant investments in cloud platforms and introducing all sorts of new services. ���There are so many specialized and customized models forming, and the boundaries between and among them are blurring,��� he says. ���While most partners are coming from distinct and different business models, they all tend to be moving toward the common goal of offering IT as a Service, which drives innovation and business-process value to their clients.��� Service providers have also become increasingly agile in creating multiple business models and quite flexible in how they apply those models to specific customers at different times. ���Service providers can be systems integrators,��� Bradley says. ���They can do packaged managed services. They can do outsourcing in the traditional sense. They can even provide a resale function where it makes sense.��� To compete in the new world of IT as a Service, supply chain providers are also transforming their internal operations, undergoing the same changes as their corporate CIO customers. Rather than simply developing and managing customer projects, IT service providers now run and manage a wide range of services for multiple customers in multiple configurations. The services may be on the client���s on-premises private cloud, the public cloud, the client���s private cloud in the service provider���s data center, or any combination of the above. In this hybrid world, Bradley says, service providers must coordinate their internal activities with those of their customers. ���It requires a different way of thinking about your service catalog and portfolio management,��� he adds. ���You have to define the services themselves as offerings, think about pricing models and explain the different ways that the customers will realize value. And this all has to be provided in a fast, secure and accessible manner.���

Articles in this issue

Links on this page

Archives of this issue

view archives of Smart Enterprise Magazine - Volume 7, Number 1, 2013