Why Virtualization is now a commodity?

There is a similarity among all the developing economies of the world. #India being one of the leading developing nations ranks third, falling behind the US and the UK in harbouring an advanced startup eco-system. The phenomenal rise in the number of #startups in the country to 4200 over the last few years indicates the opportunity that lies for #technology #solution providers. But this is just the tip of the iceberg!

The huge gap that exists between demand and supply, however, is not just limited to the startup environment in the country. The ever-changing #economic landscape of the country has galvanized a plethora of industries to shift to a #technology-based services economy. And the story is not an isolated case of India. Like India, several other emerging countries in the world are witnessing similar #transformation of industries, where technology has become the core of their operations.

Most industries now require the strong support of #technology-based #core #infrastructure. Comprising of various physical and virtual resources, right from end-user computing to data centre devices, #infrastructure solutions are vital to all corporates, which are undergoing digital transformation.

Within the spectrum, #virtualization-based #technology #services and storage solutions are now commodities that are in across all quarters. #Core #infrastructure #services thus has become one of the necessities to run and support not just organisations but even economies.

The #transformation, however, appears to be moving at a fast pace amidst the recently planned #digitization across countries. In a country like India, providing #core #infrastructure is thus improving and expanding the way corporates are functioning.

The global scale

According to #Gartner findings, by 2018 IT service providers’ #modernisation engagements to support #digital #innovation #deployments will increase by at least 30% over 2016 spending levels.

#Digital #transformation across industries, growing internet penetration and use of smart devices, and wide-scale adoption of new-age technologies such as #AI, #machine #learning, #robotics, and #virtual reality continue to propel the growth of the market. In addition to these, rising demand for cost-effective technology services within emerging economies such as Africa and #ASEAN Countries is also helping the industry to grow.

Interestingly, the growth in the past decade has been accelerated because of the demand from industries in third world countries.

Many growing industries such as #retail, #FMCG, #financial services, #healthcare and education that are linked to basic social needs of a large population across these countries require the support of solution providers. Take, for example, the healthcare industry. The global #healthcare market today has a turnover of over USD 8 trillion approximately. There is a need for connected hospitals, health and diagnostic centres to serve the population. All such institutions, whether large or small, require the support. #Education sector requires similar support, as facilities now aim to transform and serve their content and knowledge to a wider audience through #digitisation.

Additionally, regulations across certain geographies are propelling industries to move toward a #digital #infrastructure. These compliances demand that technology-driven solutions should be in place, which in turn add to the business opportunity.

 

The demand

With increasing complexities of projects, there has been a surge in demand to manage the infrastructure efficiently. And the demand is huge. It is expected that worldwide spend on technology infrastructure services is expected to reach the USD 2.8 trillion mark in 2018. (Source: https://www.gartner.com/newsroom/id/3845563)

There has been a shift from #Break/Fix #Technology #Services to the #Managed #IT #Services. Constantly updating the infrastructure to keep it ready for any future changes is the need of the hour. While this is happening, some governments globally are demanding for better and efficient use of technology across industries. This means that service providers will have to build technology capabilities to serve clients in a more intelligent manner keeping in mind the compliances and regulations.

Along with this rapid change, multi-sourcing is the new norm. While big clients look at awarding contracts as per service segments to different vendors, smaller companies award the contract to one single entity. So market participants have enough work to take one.

But there are challenges!

Complexity breeds execution challenges: #Project #management and execution remains a challenge with traditional companies. Changes require a suitable platform for all the necessary applications and functions an organization requires. Right from designing and implementing infrastructure to its management, complexities make it imperative that executioner has the in-house domain expertise to be available. Hence very often, upskilling the core team within the company becomes a must.

Moreover, traditional organizations generally do not have a vigorous adoption programme when they start a shift to technology services.

#Globalisation is a challenge: Second, with the expansion of businesses, organisations are increasingly outsourcing more workloads. This requires local help as well as help across regions. In a mismatch situation, the organizations are finding it difficult to keep up with the requirements.

Also, there is no standardization of services. Each environment is different from another environment. Therefore, the vendor requires a deep understanding of complexities. Hence, sometimes, it may be difficult to find vendors with the right mix of operational and development skills to service the infrastructure.

Thus, it is imperative to work with an experienced partner.

So how can experienced partner help?

For many companies setting up and managing #core #infrastructure is necessary but a costly affair. A technology services provider can come in as a cost-effective measure. This also means that there is direct coordination between the services provider and the organisation’s core executive team for timely information sharing and subsequent decision making. While there is #upskilling of the core team in this process, the experienced vendor also brings in a wealth of knowledge gained over years of her service across projects. But #cost #optimization is a key to hiring the outsourced arm. Above all, the involvement of experienced seasoned veterans often helps companies to go through the journey in a smooth manner.

#Core #virtual or #digital #infrastructure has #revolutionized the #technology services industry, and it is just the beginning. Businesses of all sizes are realizing the benefits, especially startups, and small to medium-sized businesses that can’t afford costly maintenance but often desire to scale up.

Some potential questions can be – how quickly is your partner able to innovate within the process? Can she synchronise with the entire strategic vision of your company? Can she drive a methodology and also help in adoption of #evolving #technologies? Can she deliver consistently? Can she customize the solutions as per your need?

If the answer to the above queries are yes and positive, the solution provider is a right fit to become your partner.

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