Cloud Services Continue to Shake Up IT Outsourcing Industry

Grazed from PC Advisor. Author: Stephanie Overby.

Half of the service providers surveyed by ISG said that a quarter of the engagements in their pipeline included cloud computing services and all of them expected cloud services to grow faster than traditional IT outsourcing particularly in the Americas.

However, Software-as-a-Service ( SaaS) and Infrastructure-as-a-Service ( IaaS) are taking very different trajectories, says ISG’s emerging technology analyst Stanton Jones. "SaaS is more narrow, and we’re seeing units outside of central IT lead the drive to evaluate and purchase," Jones says. "IaaS is broader and is IT-led. We do not see as much growth here because IT functions are preferring to play it safe and stick with more modernized and standardized infrastructures."…

But software in the cloud could take a bite out of both IT infrastructure and applications outsourcing. "Emerging IaaS providers will not take over a full-scope infrastructure sourcing deal from a traditional IT service provider," says Jones. "Emerging SaaS providers however can take over an entire functional stack like HR, displacing the incumbent hosting provider and the application development and maintenance provider because the SaaS provider provides the hosting and the application run, and the need to heavily customize goes away in favor of configuration." And traditional vendors that turn their on-premise software into services, too, can displace traditional IT service providers…

Read more from the source @ http://www.pcadvisor.co.uk/news/tech-industry/3406032/cloud-services-continue-shake-up-it-outsourcing-industry/