It is pretty well known that ‘the cloud’ no longer refers to a meteorological event. Nowadays, more and more organizations are making the move towards cloud computing, with virtual, network-based services gaining traction across the board. ITSM services are no different, with the Global Cloud-based ITSM Market projected to grow with a CAGR of 16.82 percent from 2014-2018.
Information Technology Service Management, or ITSM seeks to synch the delivery of IT services with the needs of an organization. Basically, ITSM handles all the hardware and software components used by employees on a daily basis. Traditionally this is an expensive pursuit for any organization, and involves hardware operated through on-premise infrastructure that needs to be updated and maintained regularly. With cloud-based ITSM, all hardware and software components are integrated in the cloud, so there is no need for any IT infrastructure to be built on the firm’s end. No physical storage, no network equipment and no staff required for maintenance means major cost savings for an enterprise.
Old Versus New—The Fight for the ITSM Market
The global ITSM market is in a period of change, with fierce competition raging between traditional service providers and those looking to offer the cloud-based variety exclusively. One example of the latter is ServiceNow, which was recently pegged by Forbes as “one of the most watched upstarts in the software business”. ServiceNow and its compatriots are quickly stealing the thunder from big, on-premise ITSM service providers such as IBM, BMC and HP. This kind of competition is a double-edged sword for the global cloud-based ITSM market. With companies fighting tooth and nail for their share of the pie, revenues for the companies themselves are being impacted. However, customers are reaping the cost-saving rewards of the hefty competition.
The Challenge of Cloud-Based ITSM
Making major technological changes on an enterprise level is never without its challenges, and implementing cloud-based ITSM is no exception. The process of actually moving from an on-premise ITSM model to a cloud-based one can be difficult and costly for businesses. It involves a large amount of data being moved, which is not only labour intensive, it also brings up security concerns. Additionally, any manual processes must to be digitalized and then customized to suit the cloud environment, which can be tedious for any service manager.
However, once the system is in place, the benefits for an organization are manifold. Cloud-based systems are updated automatically, usually several times per year, since all it requires is a web browser and internet connection. Compare this to the significant amount of time it takes to upgrade traditional ITSM software, which can clock in anywhere from 18-24 months. The cloud also provides better integration between departments and automatic patch management and antivirus updates, which is music to the ears of IT service managers. Fewer time-consuming internal system updates and maintenance means more time allotted to offering core services, and less money wasted on redundant systems, which will, ultimately, drive the market in the future.
For more information, view our 2014-2018 Global Cloud-Based ITSM Market report.
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