April 09, 2010
Cloud computing shakes up traditional IT outsourcing
CIO - For all the vagaries of IT services, traditional IT outsourcing has always been quite tangible--servers, data centers, networks, specifications, man-hours, lines of code. The rise of cloud computing, however, is changing all of that with flexible, asset-free IT services available on an as-needed basis for more aspects of enterprise technology.
Cloud services are a boon for many IT departments willing to forego customization: They help IT organizations chip away at hefty capital expenditures from back-end infrastructure to customer-facing software and everything in between. Consequently, the cloud is turning the traditional IT services industry on its head.
"Cloud computing represents a fundamental shift in how companies pay for and access IT services," says Susan Tan, IT services and sourcing research director for Gartner.
In fact, Gartner predicts that by 2012, 20 percent of businesses will own virtually no IT assets. That will be a game changer--for better or worse - -for outsourcing vendors of all stripes, from traditional onshore and offshore IT service providers and consultants to system integrators and new, niche vendors.
"If [the] cloud was only about gutting the clunky, expensive and environmentally-unfriendly infrastructure, and having Amazon and company deliver the computing power, then it's really just an infrastructure utility offering," says Phil Fersht, founder of outsourcing consultancy Horses for Sources.
"However, if you're going to have your data and applications hosted externally in the cloud, do you really need to manage them yourself anymore? Do you really gain a competitive edge with the way you process your insurance claims, or isn't it time to find a services vendor that will host the app, the associated infrastructure and even process the transactions for you?"
Fersht calls cloud services the foundation for next-generation enterprise sourcing solutions. He believes cloud services will make traditional delivery of IT services more efficient and cost-effective. "They also help create a delivery mechanism for true business process services," he adds. "This new class of [outsourcing] has the potential to unlock tremendous value for customers."
Source: http://www.computerworld.com/
Cloud services are a boon for many IT departments willing to forego customization: They help IT organizations chip away at hefty capital expenditures from back-end infrastructure to customer-facing software and everything in between. Consequently, the cloud is turning the traditional IT services industry on its head.
"Cloud computing represents a fundamental shift in how companies pay for and access IT services," says Susan Tan, IT services and sourcing research director for Gartner.
In fact, Gartner predicts that by 2012, 20 percent of businesses will own virtually no IT assets. That will be a game changer--for better or worse - -for outsourcing vendors of all stripes, from traditional onshore and offshore IT service providers and consultants to system integrators and new, niche vendors.
"If [the] cloud was only about gutting the clunky, expensive and environmentally-unfriendly infrastructure, and having Amazon and company deliver the computing power, then it's really just an infrastructure utility offering," says Phil Fersht, founder of outsourcing consultancy Horses for Sources.
"However, if you're going to have your data and applications hosted externally in the cloud, do you really need to manage them yourself anymore? Do you really gain a competitive edge with the way you process your insurance claims, or isn't it time to find a services vendor that will host the app, the associated infrastructure and even process the transactions for you?"
Fersht calls cloud services the foundation for next-generation enterprise sourcing solutions. He believes cloud services will make traditional delivery of IT services more efficient and cost-effective. "They also help create a delivery mechanism for true business process services," he adds. "This new class of [outsourcing] has the potential to unlock tremendous value for customers."
Source: http://www.computerworld.com/
IBM wins 5-year Finnish Alko IT outsourcing deal
IT services company International Business Machines (IBM) has won a five-year outsourcing deal from Finnish state-owned alcoholic drinks retailer Alko, the two companies said on Wednesday.
"Under the agreement, IBM will enhance and manage Alko's IT infrastructure including servers, middleware, network services and workstation support," the companies said, without disclosing the value of the deal.
IBM's key rivals for major IT outsourcing deals in the Finnish market include local market leader Tieto, Logica and Hewlett-Packard.
Source: http://www.moneycontrol.com/
"Under the agreement, IBM will enhance and manage Alko's IT infrastructure including servers, middleware, network services and workstation support," the companies said, without disclosing the value of the deal.
IBM's key rivals for major IT outsourcing deals in the Finnish market include local market leader Tieto, Logica and Hewlett-Packard.
Source: http://www.moneycontrol.com/
March 31, 2010
Ericsson wins $1.3-billion Airtel's outsourcing project
Ericsson has bagged $1.3-billion outsourcing contract from Bharti Airtel to upgrade its mobile network. This is the Swedish network company’s third billion-dollar deal with India’s largest telco by customers and revenues. ET first reported this deal on February 13.
Ericsson’s contract comes within a day of Bharti Airtel sealing the agreement to buy Zain’s African assets for $10.7-billion vaulting into the ranks of the world’s top five cellular players by subscribers. Ericsson manages Bharti’s networks in 15 of 22 telecom circles in India.
“The extension of our 15 years association with Ericsson is testimony to the strength of the relationship as well as the success of the model,” said Bharti Airtel CEO (India and South Asia) Sanjay Kapoor.
Ericsson said ‘the agreement will enable Airtel to put in place a converged network and expanded coverage in rural India’. It will expand and upgrade Airtel’s network in 15 circles.
Ericsson has won five network outsourcing deals from Bharti since 2004. Ericsson bagged the $2-billion network outsourcing, maintenance and management contract in 2007, the largest deal in this sector. Prior to this, Bharti had signed another $1-billion outsourcing deal with Ericsson. The Swedish company also bagged two sub-$1-billion deals in 2004 and 2005.
In the remaining circles, Bharti’s networks are managed and run by Nokia Siemens Networks (NSN). Bharti has also awarded five outsourcing contracts to NSN, the latest being the $700-million deal to upgrade its networks across seven circles in February.
Source: http://economictimes.indiatimes.com/
Ericsson’s contract comes within a day of Bharti Airtel sealing the agreement to buy Zain’s African assets for $10.7-billion vaulting into the ranks of the world’s top five cellular players by subscribers. Ericsson manages Bharti’s networks in 15 of 22 telecom circles in India.
“The extension of our 15 years association with Ericsson is testimony to the strength of the relationship as well as the success of the model,” said Bharti Airtel CEO (India and South Asia) Sanjay Kapoor.
Ericsson said ‘the agreement will enable Airtel to put in place a converged network and expanded coverage in rural India’. It will expand and upgrade Airtel’s network in 15 circles.
Ericsson has won five network outsourcing deals from Bharti since 2004. Ericsson bagged the $2-billion network outsourcing, maintenance and management contract in 2007, the largest deal in this sector. Prior to this, Bharti had signed another $1-billion outsourcing deal with Ericsson. The Swedish company also bagged two sub-$1-billion deals in 2004 and 2005.
In the remaining circles, Bharti’s networks are managed and run by Nokia Siemens Networks (NSN). Bharti has also awarded five outsourcing contracts to NSN, the latest being the $700-million deal to upgrade its networks across seven circles in February.
Source: http://economictimes.indiatimes.com/
IBM offers Indian start-ups free IT solutions
Global technology firm IBM is opening its doors and resources to start-up IT firms in India by offering them its technologies and solutions free of charge, as a part of its global ‘Entrepreneur Initiatives’ programme.
The company, with the help of about 40 venture capitalists (VC), has initiated the process to shortlist such business ventures, which are typically zero to three years old in the market with enough potential to serve global customers and fulfil market opportunities, according to Claudia Fan Munce, VP-corporate strategy and MD, IBM Venture Capital. The VCs are expected to bring about 140 start-ups, mostly their portfolio companies who are striving to overcome to the start-up phase, to a forum being organised by IBM.
IBM will offer the start-ups free access to industry-specific technologies in a cloud (metaphor for the internet) computing environment. The company has also offered to provide access to its research community as well as sales, marketing and technical skills.
The US-headquartered company is targeting start-ups which could potentially offer IBM’s technology stacks to a broader range of customers, mostly small and medium business space. “We do have a portfolio of offerings and solutions, and our stack is rich. But, our difficulty often is our heritage which is enterprise. We deal with large enterprises very well, but when it comes to the smaller entities, we face a challenge. Now we are trying go even lower down the food chain, which is where innovations happen. If you get a start-up hooked to IBM technologies, they drag along the rest of the IBM’s stack over time with their offerings when they grow,” says Amit Sharma, chief operations officer, IBM India.
According to a recent Fitch Ratings report, IBM India recorded revenues of Rs 10,900 crore, with a net income of Rs 580 crore in FY2009. Various industry research reports say about two-thirds of the IT markets which IBM services in India are outside the major metros. To address these markets, IBM generally use its partner ecosystems, independent software vendors (ISVs) and system integrator partners, which in turn build solutions around IBM’s technology and sell to the customers across the country.
“When you don’t have sellers, enough technical resources and you don’t have enough of everything to touch every town, city and start-up, forums like this come quite handy. We are banking upon our partner ecosystems and forums to go and expand using a pool of IBM technology,” adds Sharma.
“This forum will work as an enabler for the start up companies which generally don’t have the ability to use enterprise scale or enterprise insight,” says Sharma.
Source: http://www.business-standard.com
The company, with the help of about 40 venture capitalists (VC), has initiated the process to shortlist such business ventures, which are typically zero to three years old in the market with enough potential to serve global customers and fulfil market opportunities, according to Claudia Fan Munce, VP-corporate strategy and MD, IBM Venture Capital. The VCs are expected to bring about 140 start-ups, mostly their portfolio companies who are striving to overcome to the start-up phase, to a forum being organised by IBM.
IBM will offer the start-ups free access to industry-specific technologies in a cloud (metaphor for the internet) computing environment. The company has also offered to provide access to its research community as well as sales, marketing and technical skills.
The US-headquartered company is targeting start-ups which could potentially offer IBM’s technology stacks to a broader range of customers, mostly small and medium business space. “We do have a portfolio of offerings and solutions, and our stack is rich. But, our difficulty often is our heritage which is enterprise. We deal with large enterprises very well, but when it comes to the smaller entities, we face a challenge. Now we are trying go even lower down the food chain, which is where innovations happen. If you get a start-up hooked to IBM technologies, they drag along the rest of the IBM’s stack over time with their offerings when they grow,” says Amit Sharma, chief operations officer, IBM India.
According to a recent Fitch Ratings report, IBM India recorded revenues of Rs 10,900 crore, with a net income of Rs 580 crore in FY2009. Various industry research reports say about two-thirds of the IT markets which IBM services in India are outside the major metros. To address these markets, IBM generally use its partner ecosystems, independent software vendors (ISVs) and system integrator partners, which in turn build solutions around IBM’s technology and sell to the customers across the country.
“When you don’t have sellers, enough technical resources and you don’t have enough of everything to touch every town, city and start-up, forums like this come quite handy. We are banking upon our partner ecosystems and forums to go and expand using a pool of IBM technology,” adds Sharma.
“This forum will work as an enabler for the start up companies which generally don’t have the ability to use enterprise scale or enterprise insight,” says Sharma.
Source: http://www.business-standard.com
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