Cloud becoming more prevalent in large outsourcing deals

Wednesday 21 November 2012

Virtualisation

An increasing number of large outsourcing deals have some form of cloud computing element, it has been claimed.

Research from Information Services Group (ISG) found that the number of transactions featuring a cloud component has increased from nine per cent in 2010 to 27 per cent this year.

In 2010, ISG tracked 110 such deals, rising to 220 last year and a projected 300 by the end of 2012.

The firm reported that Software-as-a-Service remains the most widely adopted cloud technology, with Infrastructure-as-a-Service failing to gain the same level of traction as yet among large businesses.

Stanton Jones, emerging technology analyst at ISG, commented that cloud services, especially shared platforms, are "a new terrain for providers and clients alike".

He said they are highly standardised and cannot be easily customised – making them the antithesis of traditional outsourcing.

"Clearly, cloud is a disruptive trend in the enterprise, and we predict that this disruption will not only continue but accelerate, especially for the traditional IT service providers," Mr Jones stated.

"From well-known software vendors to more nimble mid-market players and emerging pure-play infrastructure and SaaS providers, traditional IT service providers face significant pressure in nearly every direction."

Posted by Dan Smith