Delivering the keynote address at Directions, IDC's annual event, Frank Gens, c, said that “IT inside” would become a mantra in a few years to come. “A lot of service providers are using IT to improve their processes and would soon offer business processes and business operations as a service.” He cited examples of companies like DHL, HP, IBM and Infosys, which are integrating IT services hidden in their BPO operations. He highlighted some of the disruptions that could change the face of enterprise IT. One of the significant changes that would happen is the growing importance of the SMB segment which is moving from an unsophisticated segment to a new lucrative market opportunity. Referring to Chris Anderson's book, “The Long Tail” which alludes to the potential of the SMB segment, he said that companies would look at mining this segment. “The top 20 per cent of the overall market drives the highest sales for IT vendors. They have not been able to nurture many of the small niche markets which are low usage consumers.” However, he said that companies like Google, Yahoo, Amazon, salesforce.com and eBay were leveraging on the Internet to provide services to the “Long-tail” market. “The challenge for the established players is come up with technologies for the market instead of letting the new players disrupt the market,” said Gens. Gens pointed out two “scary” scenarios in the way CIOs and CEOs view IT deployment. “Most CEOs and CFOs felt that IT should be used aggressively to improve business efficiency. But around 50 per cent of the CIOs felt that they need to go slow with IT deployments.” Elaborating this fact, he pointed out that while expectations are high for CEOS, CIOs were worried about the delivery of these expectations. The other concerning factor is that while 75 per cent of CIOs felt that Service Oriented Architecture (SoA) is important, less than 10 per cent have adopted it. He said that enterprises are moving from a silo based infrastructure approach to dynamic IT and consolidation. “Enterprises are untangling the mess caused by silos in infrastructure, information and applications. What is happening at each layer are consolidation, rationalization, virtualization and automation.” © CyberMedia News
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