Technology research services firm Gartner, Inc., US, has released a special report on cloud computing. According to the report, in the next few years, market dynamics will determine whether cloud-enabled outsourcing will be the demise of traditional outsourcing, if it will lead to the convergence of services and products currently marketed 'as a service,' or if it will result in next-generation outsourcing.
The report notes that the $820 billion IT services market is changing quickly and dramatically, as cloud computing and offshoring become mainstream. CIOs should take steps to manage inherent risks and unexpected costs during the cloud services revolution, according to Gartner, Inc.
Cloud-driven business and IT services include all types of solution that are developed, bundled and packaged as outsourcing service offerings for which the business or IT service provider uses one or more cloud computing technologies within the solution's overall architecture. Gartner refers to these services as 'cloud-enabled outsourcing service offerings.' These services can be delivered directly by a cloud provider or via a service aggregator for the delivery of pre-engineered and configurable business solutions in a timely and cost-effective manner.
According to Frank Ridder, research vice president at Gartner, cloud service sourcing is immature and fraught with potential hazards. The hype around cloud computing services has increased interest, as well as caution, for CIOs trying to determine where, when and if cloud services can provide valuable outcomes for their businesses.
In the new cloud services scenario, flexibility, agility and innovation are design principles and, over time, service providers will succeed in delivering on these principles. The market also expects scalability, cost-efficiency and pay-per-use pricing models from cloud services solutions. Although cloud services already provide these, service providers manage their risks through terms and conditions that are still immature. However, Gartner believes that solutions and their commercial terms are maturing quickly.
Gartner analysts will further discuss cloud sourcing at the Gartner Outsourcing & Vendor Management Summit and Outsourcing & IT Services Summits. These events provide an in-depth exploration of the significant developments and trends shaping vendor and strategic sourcing management practices, as well as the sourcing marketplace.
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