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IT organizations becoming cloud providers: IDC survey

By | June 22, 2011, 3:32pm PDT

Summary: New IDC survey finds many IT executives agreeing that corporate IT departments are evolving into that of cloud providers.

More evidence of the blurring roles between IT service providers and consumers:

According to results of an IDC/IDG Enterprise survey announced at the Cloud Leadership Forum this week, 72% of the 225 IT executives surveyed say they believed that by 2014, a third of all IT organizations will be providers of cloud services to customers or business partners.

Many companies — especially those with substantial IT assets — see themselves as assuming the role of cloud providers. Many non-IT companies may be evolving into cloud service providers as part of their core businesses.

Julie Bort of Network World also surfaced the finding that most IT managers do not fear the cloud at all. When asked if they agreed or disagreed with the statement that “75% of IT jobs will no longer exist as currently defined by 2015,” 64% disagreed, while only 20% agreed, the rest were unsure. A majority, 52%, also disagreed with the statement that IT will have to go through a painful restructuring to move to the cloud.

Vendors may have more to fear, however. As IDC relates it: “nearly two-thirds of those surveyed agreeing that several IT vendors will stumble badly in the transition to the cloud over the next three years, putting them at risk of becoming the next Wang or DEC.”

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Joe McKendrick is an author, consultant and speaker specializing in trends and developments shaping the technology industry.

Disclosure

Joe McKendrick

Joe McKendrick is an independent consultant, editor and speaker.

Joe has performed project work (white papers, articles, blogs, research and presentations) for the following companies in the IT marketspace:

  • CBS Interactive/CNET/ZDNet (this blog)
  • ebizQ
  • Evans Data
  • Gartner
  • IBM
  • Informatica
  • IDC
  • Microsoft
  • Systinet/HP
  • Teradata
  • Unisphere Reseach, a division of Information Today, Inc.
  • WebLayers

Joe has also performed research work for the following sponsoring organizations in partnership with Unisphere Research, a division of Information Today, Inc.

  • IBM
  • Luminex
  • Noetix
  • Oracle Corp.
  • Teradata
  • Informatica
  • International Oracle Users Group
  • Oracle Applications Users Group
  • Professional Association for SQL Server
  • International DB2 Users Group
  • International Sybase Users Group
  • SHARE (IBM large systems users group)

Biography

Joe McKendrick

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. Joe is co-author, along with 16 leading industry leaders and thinkers, of the SOA Manifesto, which outlines the values and guiding principles of service orientation. He also speaks frequently on Enterprise 2.0 and SOA topics at industry events and Webcasts, and serves on the program committee for this year's SOA & Cloud Symposium in London. As an independent analyst, he has also authored numerous research reports in partnership with Unisphere Research, a division of Information Today, Inc. for user groups such as SHARE, Oracle Applications Users Group, and International DB2 Users Group. In a previous life, Joe served as director of the Administrative Management Society (AMS), an international professional association dedicated to advancing knowledge within the IT and business management fields. He is a graduate of Temple University.

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RE: IT organizations becoming cloud providers: IDC survey
liezelee1109 14th Oct
According to the report, the challenge with mobile banking continues to be that it introduces a new cost structure without providing opportunities for revenue. Consumers have become accustomed to having more for free, and the convenience of mobile banking so far does not appear to be something that people are willing to pay for. - Guy Riordan
Gee everything old is new again.

Mainframe IT departments were the first local cloud. All of your data and apps in their mainframe and nothing under your control. This was the reason PCs came about.

Now flash forward a few decades and we have exactly the same deal being pushed. All your eggs in someone else's basket. However, unlike your mainframe IT department where you may have had some influence over IT or at least a chain of command, you are now just another customer on the web.

Sure the UI may be different, and cloud apps are markedly slower than mainframes with dumb terminals, but it's still the same old thing. It's just that now the techs won't talk to you at all, they converted the mainframe to a data centre on the other side of the planet and you are forced to do everything through a browser.

Isn't progress wonderful wink
@tonymcs@...
Yep. Truly wonderful.

We even use terminals here. Of our 40 or so employees, 4 have laptops, the rest use Terminals and RDP.

For the IT department, it makes things a lot easier and lets them concentrate on their real work - servicing our customers. They don't have to worry about harddisk crashes on machines that aren't backed up. Everything is backed up automatically.

That said, I still wouldn't trust my company's data to a cloud provider.

I'm a believer in P.I.E. clouding - Pre-Internet Encryption. I'll use the cloud to backup my data and sync it between various machines, but the data that isn't to be shared publicly is encrypted before it gets copied into the cloud.

Given the Lulz and Dropboxes of this world, I really don't have much faith in the Cloud, yet...
The IDC iView is a multimedia browser-based tool that delivers the results of the recent Unisys-sponsored iWorker and business research on the ???consumerization gap??? and what it means for the enterprise.- Any Lab Test Now Franchise
According to the report, the challenge with mobile banking continues to be that it introduces a new cost structure without providing opportunities for revenue. Consumers have become accustomed to having more for free, and the convenience of mobile banking so far does not appear to be something that people are willing to pay for. - Guy Riordan

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