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SaaS: Industrialized Services are Redefining IT

By Dick Weisinger

“We’re moving towards IT as a service; mass configured services and ecosystems rather than the traditional services as we know them,” said Gartner’s vice-president of IT services, Rolf Jester.

Gartner sees the market moving to a point where technology will be delivered as a service. People will no longer care about the traditional platforms of on-site IT hardware and software. The shift means that IT providers need to change their thinking about IT delivery from “one to many”.

Point solutions with heavy customizations will fall from favor. Telcos and media companies are already offering mass-consumption services, and other industries will follow.
“We’ve got to turn services from a cottage industry where everything is invented anew every time to one that is about repeatable processes. Industrialisation of IT services allows providers to be compared to others like for like. Customers will ask for more transparency on value and they will compare prices. Branding of services will become a necessity,” Jester said.

But rather than interpretting the transition to services as resulting in a decline of the IT industry, Gartner sees it as a opportunity and as a new positioning that will spark more companies companies to consume ever growing amounts of cheap IT services.

The marketplace is becoming more exciting. Even while IT giants are going through frequent rounds of acquisition and consolidation, a lower cost of entry is allowing many new companies, especially those targeting specialized niches, to spring up, and the growth is happening globally.

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