Sandra NgGroup VP, IDC Asia/Pacific Practice Group
“All is flux, nothing stays still,” a maxim written 1,000 years ago, but still as true today. Change is eternal, forcing societies, and businesses, to continually adjust to a “new reality.”
The reality for enterprise IT is that cloud – once deemed a business game-changer – is mainstream and here to stay.
By 2018, at least half of IT spending will be cloud-based, reaching 60% of all IT infrastructure, and 60–70% of all software, services, and technology spending by 2020.
The rapid rise of digital transformation (DX), enabled by cloud and other 3rd Platform technologies, is ushering in a new paradigm shift in business service delivery and consumption. Industry incumbents, hot on the heels of start-up businesses with “as-a-service” (aaS) business models, are fast adopting a “cloud first” mindset.
In this environment, a company’s IT mindset shifts from its current role as technology “managers” to core business and operation “service providers,” tasked with developing, or often externally sourcing, innovative cloud services to meet internal business demands.
IDC believes that over the next two years, staffing for cloud services will become a strategic decision that involves more than the IT organization, as the enterprise looks to fill the skills gap by relying on cloud service solutions offered in the market.
The new era of aaS delivery boils down to a few simple business goals that have been elusive until now — the ability to ramp up and ramp down resources as needed, without having to acquire or commit to unnecessary hardware, software and infrastructure. Paying for what one needs and activating services and resources according to actual requirements is not only smart business, it is a key strategy of digital transformers — businesses that are market leaders in providing world-class digital experiences.
In the article, “Transforming the workplace to re-invent customer customer (CX),” IDC talks about the transformation of the workplace and its business processes to deliver engaging and immersive experiences for employees, customers as well as partners.
It is in this context that IDC sees device acquisition strategies aligning with the needs of the fast-evolving workplace. In the wake of DX, which affords greater empowerment of employees and customers, businesses will have to relook their entire operations.
Procurement of critical office equipment, such as devices and printers, should be seen in the broader view of affording the business with flexibility, reduced cost of ownership as well as up-to-date technology in a secure environment. Real-time business will necessitate real-time security monitoring and management to protect customer data, strengthen compliance, and reduce risk.
Besides security, talent is the other business imperative in the DX era. The current high demand for cloud-related technical skills is running into the wall of lack of supply in the marketplace. In response, enterprises are looking outside their organization.
By 2017, there will be a 9% shift of IT budget away from in-house IT delivery as more third-party service providers are used to fill cloud-related skills gaps.
As such, organizations must prepare to manage a significant change in their IT staffing and roles, placing focus on “core” roles that should not be outsourced, while retooling internal workers to more effectively use third-party solutions.
With transformation of business processes, in-house IT will also get smaller and act as the knowledge keepers of the enterprise’s architecture while also becoming more influential, and strategic, as it works to drive business transformation projects and long-term organizational success.
Enterprise IT departments will need the skills to focus more on compliance, the governance of IT, and managing their cloud service providers. The transition to a cloud-based enterprise and aaS business models will create a shared, dynamic, automated, elastic IT environment that is delivered through a mixture of private, public, or hybrid cloud services.
At its core, the paradigm ship towards an aaS economy will further enrich, and embed, transformation into the workforce, using digital and social connectivity to optimize relationships, connectivity, and collaboration across the workspace.
Mindsets have to change in the wake of DX.
Market leaders will be those that succeed in accelerating internal IT enterprise-wide transformation by considering flexible deployments and built-in solutions that mind critical security gaps in processes and devices.
Is your workplace free from unnecessary burdens or still stuck with old mindsets and outdated technology?