The IT Shift That’s Creating a Total Market Eclipse for 2018
The ISG Index™ report for the second quarter of 2017 revealed, “as-a-Service now makes up 41 percent of the global commercial sourcing market – and growing.” It's expected that in short order the global as-a-Service spend will heavily compete with traditional sourcing and actually eclipse it. Spending in the U.S. over the last year is already evenly divided between traditional sources and cloud-based platform services, including Infrastructure as-a-Service and Software as-a-Service. In other words, the momentum has already shifted.
At ViON, we have seen this trend coming for some time and have built our solutions to be available in both traditional and as-a-Service models to accommodate company and agency requirements on both sides of the spectrum. In light of this notable swing of the pendulum this year, ViON is now focused more than ever on the next disruptive approach to IT: Data Center as-a-Service. As agencies modernize IT, we see the overwhelming need to address all the functions within the data center, not just a single technology. The as-a-Service financial model makes that modernization more feasible from a time and cost standpoint.
Why Data Center as-a-Service?
- Federal government has made it clear: modernization is a must – agencies don’t have the means to replace the full data center carte blanche.
- Every part of the data center requires evolution, not just one technology, therefore the real solution the customer needs is the whole solution.
- The as-a-Service financial construct provides the flexibility to modernize faster and with better economics.
- The model enables agencies to modernize one segment at a time in pursuit of a complete evolution.
The Federal Market’s Response to as-a-Service
We see defense agencies already employing this “one step at a time” modernization strategy on the path to the full Data Center as-a-Service model. We expect to see a majority of the Federal IT market going this direction and it impacts cloud policies as well.
ViON has been in the as-a-Service business since it first became a possibility. It started with a Capacity as-a-Service computing contract 14 years ago. Our business has always reflected leading market changes and our customers’ demands always reflect its trends. If I look at our business 14 years ago to where we are today – the customer set has expanded dramatically – demonstrating how the market is embracing this procurement methodology. Today we have contracts across both Defense and Civilian agencies and commercial companies like Fujitsu and Bechtel. We have in excess of 30 different as-a-Service contracts, many including managed services, where our project management team manages day-to-day workflow and drives day-to-day operations.
Leading the Market With Tools to Simplify
This history has allowed us to get ahead of the as-a-Service trend. And now we are witnessing a change in market momentum as agencies and companies look to modernize their IT infrastructure. Customers who are new to this model will reap the benefits and rewards of a well-established, easy-to-use customer portal and a team that defines SLAs based on metrics so that every partnership is built on a shared vision for success. It’s all part of our customer intimacy model.
We are partial – it’s true – to the as-a-Service approach. And there’s good reason. Our customers have finite budgets, pressed timelines, increasing challenges associated with legacy technology and a host of public mandates that are unrelenting in their requirements. Customers need innovative solutions to the ever- changing demands in the data center. The Data Center as-a-Service offering brings disruptive technology into the data center with a cost effective approach.
Ready or not, the total eclipse in the IT market is upon us. But rest assured, it’s a path ViON knows well – and protective eyewear is not required.