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"The number of service providers each company uses will grow dramatically, driven by growing popularity of cloud in general
and Software-as-a-Service [SaaS] in particular," says Scott Feuless, principal consultant with outsourcing consultancy
Information Services Group.
That means governance requirements will also magnify. "Managing service providers, due to increasing application focus and
the commoditization of infrastructure, will take on characteristics that we see in software portfolio management today -elimination of duplicated and unused services, allowing for growth, negotiating and negotiating again," says Scott Fueless,
principal consultant with ISG. "Integration will be absolutely critical and is likely to be the key differentiator between one
organization's IT effectiveness and another's."
7. The Business Takes Over
More technology services will be purchased by business leaders rather than IT in 2015. "As consumer products like cars and
washing machines and thermostats continue to embed technology, more and more product engineering teams will treat IT and
IT services as core purchases and will take over those contracts directly," says Ferussi Ross of Neo Group. "This will split
current shared services organizations that don't understand the trend." In the short term, it will also shift power to suppliers who
have new buyers to target -- minus the burdensome bidding and RFP processes of the past.
"IT will struggle to migrate itself successfully to a service brokerage model, pulling disparate services back in from business
units that have put their own applications in the cloud rather than wait for IT to provision infrastructure," adds Fueless. "IT's case
will be compelling where they can deliver savings through rationalization, integration and superior service measurement and
selection."
8. The RFP Fades
Speaking of traditional IT procurement processes, the tried-and-true RFP process will begin to lose its luster. In today's dynamic
era of technology change, the traditional RFP simply takes too long and costs too much. By the time the proposals come in, the
business requirements have often changed.
Look for new purchasing processes, such as enterprise marketplaces, to take the place of RFPs. "Imagine floating a 'request for
food' every time you're deciding on a restaurant," says Pratham Mittal co-founder of VenturePact, a marketplace connecting
providers with customers.
"Emerging technologies are not a good fit for the RFP model. There are new technologies coming up every day that enterprises
may not understand. Think Google Glass. Think wearables. Big companies need to collaboratively work with service providers
to really figure out how this can be used in their enterprise."
9. The Cloud Comes Down to Earth
Okay, we predicted last year that the cloud would get grounded. In 2015, it will.
"Enterprises will take a pragmatic approach to cloud-provided infrastructure and solutions, gaining confidence and building
internal expertise along the way," says Andy Sealock, partner with outsourcing consultancy Pace Harmon. Cloud-based
solutions will continue to serve as point solutions within given functions, while more general cloud computing and storage
solutions will progress down two distinct paths. "The first path, which will progress faster, is for new applications that can be
designed from the beginning to optimize cloud infrastructure.
Early adopters may set official policies whereby they need an exception from the governance process to not develop new apps
optimized for the private or public cloud," Sealock says. "The second path addresses porting existing apps over to cloud
infrastructure. For large, complex Fortune 2000 IT environments with a very heterogeneous application footprint, this requires
app-by-app analysis and testing to ensure that it will perform and maintain SLAs, and that it won't inefficiently
infrastructure and run up variable costs that will sink the business case."
"Amazon Web Services and Softlayer are both well positioned to see significant growth at the enterprise layer," says Hall of
ISG. Companies will have to get past their security and business continuity concerns. And they may abandon the term "cloud"
altogether. Companies will recognize "that the term no longer means anything at all," says Fueless. "Providers and pundits will
need to specify [Infrastructure-as-a-Service] IaaS, [Platform-as-a-Service] PaaS or SaaS at a minimum, with qualifiers like
dedicated, shared, public, private, on-premises, off-premises to participate in any useful discussion of infrastructure services."
10. The Sourcing Decision Becomes Data-Driven
"Data and analytics will play a central role in sourcing advisory," predicts Vashistha of Neo Group. "As the complexity of
sourcing rises and clients become increasingly sophisticated, the need to find the next set of opportunities and optimization will
benefit greatly from analytics and not just expert advice."
"Enterprises will rely on better data and cost transparency to understand optimization opportunities and require better
integration of their management processes to integrate multiple cloud providers and service providers," says Hall of ISG.
Source : CIO.Com