The choice of global services leaders.
Publications
More information
For more information about our research offerings or to request a briefing from one of our analysts, please e-mail our Client Director team or call us at:
+1-214-451-3110
+91-124-496-1000
+44-207-887-1483
List of research
For more information on our research and webinars and to view a list of research, please CLICK HERE to download the Everest Group Blue Pages.
Client support
For assistance with accessing the web site or research subscription materials, please read our Guide to Everest Group’s Research Website or e-mail our support group.
Offshore Suppliers' Datacenter Dilemma: Reluctant Owners or Aggressive Innovators?
ID: ERI-2010-4-W-0412
Soumit Banerjee, Yugal Joshi, Ross Tisnovsky
11 pages
Price: $249 (USD)
add to cart
email a colleague
Executive Summary
In the pursuit of becoming a “one-stop” shop for buyers’ IT outsourcing needs and targeting large buyers, offshore suppliers are seeing their infrastructure outsourcing (IO) business becoming very similar to the traditional IO business of multinational companies (MNCs). However, unlike MNCs, offshore suppliers generally have been averse to acquiring buyers’ infrastructure assets and shied away from investing in capital-intensive datacenters.
Offshore suppliers are seeing their infrastructure deals becoming more complex in terms of pricing and the buyer revenue segment becoming very much similar to that of MNC IO suppliers. However, despite various pointers of convergence of the offshore suppliers’ IO business and MNCs’ IO business, the propensity of offshore suppliers to acquire assets is still minimal and on a case-to-case basis.
This paper discusses the:
- Historical perspective of the IO market
- Changing IO landscape and its impact on offshore suppliers
- Current datacenter strategies of offshore suppliers and their movement towards a different strategy
- Likely evolution of offshore suppliers’ datacenter strategies
Our analysis is based on critical trends in infrastructure outsourcing for offshore and MNC suppliers, some key deals, and strategic moves exhibited by offshore suppliers in the last couple of years. We analyzed the propensity of management towards owning assets and making alliances or partnerships with various datacenter providers.
RELATED RESEARCH
Remote Infrastructure Management - Impending Crisis of Genre
The Infrastructure Outsourcing (IO) market continues to evolve with offshore suppliers maturing as infrastructure service providers, enabled by remote infrastructure management (RIM) technology. As offshore suppliers mature and reach critical size, they see the need to target larger buyers to keep growing their RIMO practice at a healthy pace. This practice led to convergence of the traditional and offshore models. However, this move meant they had to start playing by rules long established by the traditional players. Offshore suppliers in this emerging scenario may be facing a "crisis of genre" that may restrict their growth unless they can strike a balance between targeting large buyers and staying away from playing according to traditional rules.
|
More
Hype and Reality of Cloud Computing – “Mind the Gap!”
Cloud computing is entering the enterprise IT agenda with several promises including flexible IT demand management and cost reduction. Suppliers are adopting multiple strategies to attract enterprise buyers; however, there are many issues that organizations need to consider before betting big on the cloud.
|
More
Emerging Supplier Dilemma in the Remote Infrastructure Management Market
The Infrastructure Outsourcing (IO) market continues to evolve with offshore suppliers entering the market through labor arbitrage, enabled by remote infrastructure management (RIM) technology. The continued maturity of the remote infrastructure management outsourcing (RIMO) suppliers’ offerings leads to a strategic dilemma facing IO suppliers. Leading RIMO suppliers realized this dilemma and started indicating their strategic directions. |
More