As organizations pursue a new IT architecture and operating philosophy, they become prepared for new opportunities in digital business, including next-generation IT solutions such as the Internet of Things,« said Mr. Another example is that enterprise storage needs could be met with a lower up front cost and far more scalability by switching to cloud solutions instead of buying dedicated hardware. Identifying indirect effects can help IT asset and purchasing managers ensure they are getting the best value out of new expenditure and are protected against risk, as well as assisting them to exploit the new opportunities caused by cloud shift.įor example, instead of buying operating systems (OSs) for each user in the traditional way, many will be provided as OS images - particularly with the use of containers for next-generation applications. In addition to the direct effects of cloud shift, many markets will be affected indirectly. Cloud Shift Summary by Market Segment Legacy SegmentīPaaS = business process as a service IaaS = infrastructure as a service PaaS = platform as a service SaaS = software as a service Cloud shift rates are determined by comparing IT spending on cloud services with traditional noncloud services in the same market categories (see Table 1). The aggregate amount of cloud shift in 2016 is estimated to reach $111 billion, increasing to $216 billion in 2020. IT spending is steadily shifting from traditional IT offerings to cloud services (cloud shift). Note: BPaaS = business process as a service BPO = business process outsourcing CSP = communications service provider IaaS = infrastructure as a service ITO = IT outsourcing PaaS = platform as a service SaaS = software as a service. »The market for cloud services has grown to such an extent that it is now a notable percentage of total IT spending (see Table 1), helping to create a new generation of start-ups and ›born in the cloud‹ providers.«įigure 1: Shift From Traditional IT Spending to Cloud ✼loud-first strategies are the foundation for staying relevant in a fast-paced world,« said Ed Anderson, research vice president at Gartner. This will make cloud computing one of the most disruptive forces of IT spending since the early days of the digital age. More than $1 trillion in IT spending will be directly or indirectly affected by the shift to cloud during the next five years, said Gartner, Inc. 12-13 September and Grapevine, Texas 19-21 September IT Asset Managers Must Identify Risks and Opportunities and Adjust Vendor Management StylesĪnalysts to Explore the Impact of Cloud at the Gartner IT Financial, Procurement & Asset Management Summits 2016 in London, U.K. And secondly: a software that allows SAP data to be linked with data from other sources for shared use.įor this reason, finding the correct ILM strategy is not just important because it proactively controls continuous data growth, but also because sensitive data, particularly personal data, need to be handled properly for compliance reasons.Gartner Says by 2020 ✼loud Shift« Will Affect More Than $1 Trillion in IT Spending Firstly: an intelligent ILM strategy that smartly and automatically controls the deletion and archiving of data whilst ensuring that it is audit compliant. The aim: to store precisely those data that are crucial for day-to-day activities in the main memory. You should, however, integrate data and documents from SharePoint, Email or Office, for example. The advantages of the SAP S/4HANA in-memory database only become apparent if companies sort out and archive outdated and redundant data prior to migration. Moreover, Gartner, the research and advisory company, advises archiving data with no bearing on day-to-day operations in the document management system prior to migration as this will save costs and improve the performance of SAP S/4HANA.Ĭustomizing the Archiving Strategy Prior to Migration This is due in part to the fact that users – as recommended by SAP – should consistently standardize business processes before switching and unify heterogeneous IT landscapes that use different systems. Six years for a changeover may seem a long time, but the effort involved should not be underestimated. This is important because the regular maintenance of the SAP Business Suite 7 will be phased out at the end of 2027, with extended maintenance being available until the end of 2030 at the latest for an additional charge. You now need to decide whether to remain loyal to SAP and switch to SAP HANA or whether to look around for alternatives. However, many companies are still working with old core products. SAP introduced the fourth generation of its ERP product in 2015.
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