We’ve discussed service management and the transformation that IT is undergoing with the catalysts being the cloud, service providers, SaaS, social media, collaboration, mobility, BYOD, etc. The root catalyst is choice and options in the market and the competition speaks in terms of service value and service performance. I posted a question in LinkedIn regarding how much of your services are in the cloud today and expected to be next year? Join the discussion. The first answer was as I expected, a law firm that isn’t in the cloud and isn’t going there because of security concerns. I responded as I bet they use services that are internet based, research likely, and thus they are in the cloud. Just like a recent customer discussed having hundreds of apps in the cloud that now need to be reconciled, rationalized and managed for cost. How did they get this point? Easy, credit card subscriptions – cheap and easy to do business with.
If you’ve ever spoken to me and if you have ever said, “we outsource or use the cloud because it is cheaper“, you have also heard me cry hogwash on you. It’s never cheaper unless you are a hideously inefficient IT organization and I have met only one of those and they could laugh at their inefficiency as I made this statement. Outsourcing is done to create change that is impossible to do from within. This is actually something that IT should be embracing rather than fearing. What!?!? I know….let me explain. In all fairness to IT organizations, you have not been afforded the same opportunity regarding standardized service delivery that the service providers are offering, however, you have done yourself a disservice in not communicating service value, service performance and focusing on driving revenue rather than costs.