New business models are capturing growth and stand to reshape the services industry. Two of the most promising of these are SaaS and “Enterprise IT as-a-Service.” Buyers need to understand that each model takes a different approach to delivering services; their risks also are not the same, and each approach has different consequences. They
Any replacement of new technology for an old technology, or a new approach to technology acquisition, incurs a technical debt that the consumer of the technology must pay down. Providers make all kinds of promises around SaaS, BPaaS and platforms, which lead buyers to believe they can avoid the technical debt when they adopt
Have you noticed how few service providers have the ability maintain a market leader role when the market changes to favor new technologies, or new service models? It’s very difficult to make this shift, and I’ve seen very few companies achieve the shift – let alone do it three times. Just one. Wow! If
Since publishing our two most recent blogs about the business situation at Infosys (Connecting All the Dots and Silicon Valley company) and comparing those perspectives to our blogs over the past two years, people have asked us: “Why did you change your point of view about Infosys?” Here’s why – it’s because most of
At Everest Group, we’ve heard industry rumors that Infosys CEO Vishal Sikka – formerly on SAP’s Executive Board and global lead for products and innovation – recently hired two former SAP executives based in Silicon Valley. This move comes on the heels of Sikka planning to invest in startups in Silicon Valley. What does
At Everest Group we’ve noticed a growing trend in our client base. As I’ve blogged before, business stakeholders have become increasingly independent and make independent decisions. Mostly they have adopted point solutions, standing up functionalities and making decisions to use SaaS products and developing their own skunk works, agile teams to develop fast functionality.
As I recently looked at service providers’ PowerPoint decks pitching their as-a-service offering, the well-known tangled-web-we-weave quote from Sir Walter Scott’s 1808 poem “Marmion” came to mind. It’s very clear that the industry is interested in moving to platform services. And it’s a fabulous idea — great content reduced cost, agility and focus on
I’ve observed an unusual acceleration of new activity here at the end of the year — a season when global services initiatives activity traditionally tapers off dramatically. It looks like this year the industry is getting a big Christmas / New Year’s present of accelerating sales. What’s the reason for this strong uptick in
The 16th century political theorist Machiavelli wrote that there is “nothing more dangerous, or more doubtful of success, than to attempt to introduce a new order of things.” I think we should remember his words as we embark on the journey to embrace the next-generation solutions entering the services marketplace. Next-generation options are now
IBM is taking some bitter medicine right now in its series of divestments. Big Blue recently exited the chip manufacturing business by spinning off that division to Globalfoundries. The move comes on the heels of having exited its server business and voice and transaction BPO business. There’s a lot of media attention to “IBM’s