The growth of the enterprise cloud continues as businesses of all kinds turn to it to expedite and improve functionality. A recent IBM infographic pointed to the projection that the year 2014 will see businesses spend upwards of $13 billion on cloud solutions, Forbes reported. The sheer amount of money being funneled into the cloud should be indication enough that enterprises across industrial sectors are embracing it with open arms. However, there is at least one type of company that is perhaps greeting business cloud expansions less warmly: companies that design enterprise IT solutions.
With popularity of cloud, IT designers will have to adapt to the times
According to GE Capital, Commercial Distribution Finance, the people who create IT solutions for businesses are having to significantly re-evaluate the way they do business due to the growing proliferation of enterprise cloud platforms. The problem for these companies, as the article points out, is that they largely deal in reselling hardware and software solutions – two things that are rendered unusable by companies shifting to a virtual platform.
But mounting organizational interest in migrating to a cloud service provider does not mean such IT solutions providers will be out of a job. They simply must adapt their services to meet the changing demand. Whereas businesses once needed tools to secure in-house IT, the rapid expansion of cloud platforms has created a new set of corporate priorities. According to GE Capital's Mike Marcolina, some solution providers are realizing this and altering their offerings accordingly.
"Instead of making large sales related to one-time projects, solution providers are now offering long-term contracts for shared cloud services," he said. "That shift to recurring revenue streams is having a major impact on the way solution providers address a range of issues."