segment analysis
in 2011 in these markets. In addition, this region is expected to lead worldwide expansion of cloud computing markets. Cloud computing is a method to deliver the crucial IT needs for any small and midsize businesses, for say-cheaper operational infrastructure and opex agility. The most commonly used cloud services are email, instant messaging, voice communications, and backup. The number of very small companies (2-10 employees) using paid cloud services will triple in the next three years. Almost half of them agree that cloud computing is going to become more important for businesses such as theirs. Speaking of the worldwide public cloud services market, SMBs will drive the market over the next five years. Total cloud market both private and public is expected to reach $85B by 2015. In this time frame, the growth will be driven by SMB consumption of cloud. The biggest motivators for migration to the cloud among SMBs are to save money, followed by increases in productivity. Cloud allows SMBs to gain access to infrastructure and other IT technologies that were only leveled for big IT enterprises. By utilizing cloud services, SMBs can stop worrying about the details of installation and operations for sophisticated infrastructure and services. SMBs can gain access to the high end IT services that requires negligible amount of IT infrastructure. Gartner predicts Small & Medium Business (SMB) in the insurance industry will have a higher rate of cloud adoption compared to their enterprise counterparts.
State of the RIM Market In the recent years, a major development has been the convergence of the Remote Infrastructure Management Outsourcing (RIMO) and traditional Infrastructure Outsourcing (IO) models. According to Everest study on Infrastructure Management, the RIMO model is gaining wider acceptance across the buyers, which in turn is witnessed by an increased number of IM deals. RIMO, as a model is maturing quickly and entering into a phase of sustained
52 | September 2012
IMS
As the firms across the globe scours the landscape for ways to focus on their core competencies and maintain their competitive edge, the most significant value drivers in IT outsourcing is remote infrastructure management (RIM) - the offpremise, often off-continent, management of IT infrastructure. Ben Trowbridge CEO-Alsbridge
growth. External realities such as the advent of the big data era and greatly enhanced role of mobility in enterprises will shape solutions that providers propose on renewed contracts. Recent deal signings are indicative of new trends, such as increasing popularity of multi-sourcing, decline of “lift & shift” models, reinvigorated attention to pricing models, and increased importance accorded to analytics. Offshoring of infrastructure management labor typically realizes a savings of 5 to 20 percent compared with U.S. labor rates. But do not assume these savings are instantaneous. RIM services, as with outsourcing in general, typically provide a gradual saving curve as delivery maturity is attained, usually within the first two years of the engagement. The banking, financial services, and insurance industries are leading RIM offshoring growth.
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