By Sarah Pollock, May 17, 2013
Joe McKendrick, a technology contributor for Forbes Magazine recently wrote an article based upon the findings from the latest annual report on the future of the software and services industry. The report, which was based on 37 top executives at software and cloud companies, was originally produced by the Software & Information Industry Association in an attempt to delve into the minds of tech vendors and find out who are the cloud providers and who are the cloud consumers.
In the article, McKendrick dives deeper into four areas of observation that came about from the report and concludes the following:
IT shops are becoming service providers themselves.
- A number of software executives point to the fact that IT departments themselves are becoming software or service companies. “Fundamentally, large enterprises continue to be run by IT departments tucked behind a firewall,” says David Roth, CEO of AppFirst. “However, these IT shops are realizing the value in becoming the service providers of private cloud offerings: they can provide the agility that their departments require, while ensuring that their security and governance standards are being met.”
If not solutions providers themselves, then IT departments are becoming cloud gatekeepers.
- There has also been a push for IT departments “to bring value add benefits around some of the business selected cloud products,” Roth continues. IT leaders need to take the initiative with wrapping data integration services, security and governance around outside cloud solutions. Their role is to ensure “that the entire portfolio of applications is living up to their firms’ standards.”
“Private SaaS” will emerge within the enterprise.
- Feyzi Fatehi, CEO of Corent Technology, also points to the role of IT as internal cloud vendor. Such cloud services “can be offered by the office of the CIO and effectively treat the corporations’ sub-entities as tenants. The private SaaS model can be extended to outside entities such as franchisees, suppliers and partners of the enterprise, to establish invitation-only communities to a SaaS application, and will become a mechanism to strengthen enterprise relationships.
BYOT — Bring Your Own Technology:
- Still, the consumption of tech services is boiling down to individuals, and not necessarily even organizations. Bill McNee, founder and CEO of Saugatuck Technology (not a tech vendor but an independent analyst firm) says “Bring Your Own Device” is too narrow a way to look at the trend that is shaking up the enterprise IT industry – it’s about “Bring-Your-Own-Technology” (BYOT). “We are using this term, rather than the popular ‘BYOD,’ as what is happening in the enterprise – and what ISVs need to enable and support – is not just about mobile devices, but also personal applications, clouds, services, and data within the enterprise.” Saugatuck’s research shows that BYOT is poised to become the next major development in the way enterprise IT is delivered, enabled by cloud, along with social computing, analytics and mobile. “What sets BYOT apart within the enterprise is that it marks a relinquishing of hardware ownership in addition to software and business process ownership.”
What do you think of the report’s findings? From your experience do you believe it’s true that there is no longer a clear line between who is a cloud provider and a cloud consumer? Feel free to comment below!