844RA Cloud IT and The Development of Cloud Services
Two classes of Cloud Services are emerging. The first, Cloud IT Services, help IT departments run the business better, faster and cheaper through the deployment and management of Cloud-enabling technologies and services. The second, Cloud Business Services, is where the services provider works to radically change the business through the redesign of core processes through Cloud IT. Within the context of this services innovation, new offerings are being created not only by traditional vendors but by new wave Cloud Services providers – that are both redefining services delivery (in markets that are mature and well understood, e.g., HR, and Finance) as well as enabling new markets and services offerings in “white space” markets.
While still relatively small as a market (sub $500m), the combined Cloud Services market is growing rapidly. But like the long tail of a hockey stick, the major services providers such as Accenture, IBM, CSC, and HP as well as offshore outsourcers like Infosys, Cognizant, TCS, and Wipro are investing HEAVILY ahead of the curve of some significant Cloud IT adoption (see Note 1, Key Services Strategic Planning Positions).