The Enterprise CIO is Moving to a Consumption-first Paradigm  

16 April 2015:

Take yourself back a couple of decades and the IT industry looked very different than it does today. Back then the number of solution choices was relatively limited and only available to those with the finances to afford it. Many of the core services had to be built from the ground up. Why? There simply wasn’t the volume or maturity of the IT marketplace for core services. Today, that picture is very different!

For example, consider email. Back in 1995, Microsoft Exchange was just a fledgling product that was less than two years old. The dominant email solutions were cc:Mail (acquired by Lotus in 1991), Lotus Notes (acquired by IBM in 1995) along with a myriad of mainframe, mini and UNIX-based mail servers.

Every enterprise had to setup and manage their individual email environment. Solutions like Google Apps and Microsoft 365 simply did not exist. There was no real alternative…except for outsourcing.

Outsourcing 1.0

In the mid-late 90’s outsourcing became in vogue as a means to divest the enterprise. The theory was centered on economies of scale and expertise that most enterprises simply did not possess. Back then, IT was squarely seen as a cost center.

Unfortunately, outsourcing did not deliver on the promise. It was an expensive, opaque option that created significant challenges for many enterprise organizations. Even today, these wounds run deep with IT leaders when they think of leveraging cloud-based solutions.

The intersection of IT maturity and focus

Fast forward to present day. Today, organizations are re-doubling efforts to catapult their position through leverage. This effort brings laser focus upon the IT organization to pinpoint those efforts that derive differentiated value.

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Source: Gigaom Research

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