IT Transformation is and has been a hot topic for >20 years. Wow! I was speaking to one of my analyst friends at Forrester not too long ago and we were chatting about how much waste exists in annual IT spend just “Keeping the Lights On” and how these metrics haven’t changed in >20 years. The answer has been simple, no competition, no catalyst for change.
This week I was reading an article from the NY Times Technology section, “Information Technology Spending to Hit $3.6 Trillion in 2012”, supported by information from Gartner and it pointed to this pent up demand for transformation within IT organizations. Much of the increase in spending is going to Cloud Service Providers and Consultancies even with economic challenges in Europe and China. There is an increase in Public Cloud spending by 20% representing considerable computing power and more efficient IT Systems due to complex systems, cloud computing and analytics. My reaction as I read the article was Wow again. Ironically, this comes on the heals of articles from the previous 2 weeks regarding the outage of the cloud and Amazon’s Ashburn, VA data center.
My first comment is no one outsources services because it is cheaper. Services are outsourced to create change that cannot be achieved from within. So let’s break this down into the great change that is underfoot and IT Transformation based upon cost, value and innovation.