Cloud to cannibalise managed services?

July 11, 2011 Off By David
Grazed from IT Web Business.  Author: Nadine Arendse and Admire Moyo.

Once cloud computing reaches the stage of maturity, it will probably eat into managed services revenues.

So says Julian Liebenberg, Business Connexion’s GM for services, who, however, notes that despite the advent of cloud computing, traditional methods of installing and customising software on an organisation’s own data centre are still popular among local businesses.

He, therefore, believes managed services providers in SA still have opportunities, as cloud computing is still to reach maturity.

To establish local organisations’ appetites for various types of managed services, ITWeb and Business Connexion this week rolled out the Managed Services Survey.

Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction.

On the other hand, managed services are based on a contractual relationship between a business and the service provider.

“The simplicity of the cloud computing services will, no doubt, affect the managed services market,” says Liebenberg.

He is of the view that understanding business models, as well asset ownership of enterprise infrastructure, allows businesses to formulate the best packaging and presentation of their services.

When making use of managed services, he urges businesses to engage experts who specialise in these services to administer them on their behalf. “Service management expertise ensures the attainment of high SLAs [service level agreements], which are not necessarily within the client’s capability,” he states.

The results of the 2011 Managed Services Survey will be published on ITWeb and respondents stand to win an Apple iPod Touch.