IT service providers cautioned about cloud computing trend

Peter Dinham
Thursday, 22 October 2009 13:12

IT Industry - Market

IT service providers need to be wary of the emerging trend towards cloud computing services to ensure it does not negatively impact their business, with Ovum cautioning that although widespread adoption of cloud computing is slow to materialise, services vendors should take steps now to ensure that they can take advantage of any future revenue-generating opportunities that the cloud computing services market will provide.

According to Boston-based Ovum research director, John Madden, IT services providers, particularly those offering systems integration (SI) services, need to “adopt new strategies and approaches to ensure that the trend toward cloud computing services does not negatively impact their business.”

In taking steps to take advantage of opportunities emerging from cloud computing, Madden said “these steps include becoming an innovator in the development of cloud computing services, and creating and supporting cloud services ecosystems among various IT vendors”.

“In truth, services providers have no choice but to take such steps to keep up with customer interest and, more importantly, to blunt the technology’s potential negative impact.

“Global systems integration firms in particular are worried that cloud services could irrevocably alter the SI business as we know it.”

According to Madden, the traditional SI model of tying together disparate IT systems is “not going away any time soon” due to cloud services, as the market for such services is still too young.

“However, some customers that leverage cloud services in theory will no longer need an SI for complex, time-consuming and costly integration of their internal IT systems”, Madden adds. 

“Cloud services also could open up new opportunities for services providers to package SI services with consulting and outsourcing, as customers look for guidance and third-party expertise in the delivery of cloud services.”