More and more enterprises are making more and more data center outsourcing deals with companies like IBM and HP. And more and more of those agreements are involving managed virtual private cloud services.
So says renowned market research firm Gartner in a new report. Gartner recently published its annual Magic Quadrant report on the North American data center outsourcing market, and according to Gartner analysts, future growth in the data center services market will be driven in large part by industrialized infrastructure services. This category of services includes both Infrastructure-as-a-Service and Platform-as-a-Service.
This data center services growth is also expected to come at the expense of growth and margins for traditional services – which Gartner foresees as facing further pressure down the line.
In the Gartner report, officially entitled Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, North America, IBM and HP remained top data center outsourcing providers – ahead of everyone else in terms of both vision and execution. Other providers named by Gartner included Dell, HCL Technologies and CSC.
While it did cite HP as one of the leaders in the category, Gartner estimated that HP’s data center outsourcing technical support and infrastructure utility services revenue in 2014 was down – around 5 percent lower – from the previous year.
HP’s key strengths in the outsourcing market are its infrastructure scale (featuring close to 80,000 physical servers across about 30 data centers), its ability to provide just about every kind of data center outsourcing technical support service imaginable, and strong management and budget oversight in service engagements.
HP’s cloud services, however, haven’t done as well as the company may have hoped, according to the report. For its part, HP says its managed cloud server offering, Helion, has seen double-digit growth. But according to the Gartner analysts, the penetration of its virtual private cloud, utility, or managed private cloud offerings remains below 15 percent.
The chief rival to HP, IBM ranks as the largest player in the market for both cloud and traditional enterprise data centers. Gartner estimates that IBM makes around $3 billion in annual sales of its data center outsourcing technical support services.
The report cites the main strengths of IBM as focusing on solving specific business issues for clients (rather than simply providing standard technology and support services), breadth and depth of resources, and willingness to switch to new service models.
One of Gartner’s cautions concerning IBM involved the potential for impact on existing interfaces and processes of the company’s recent restructuring – which included melding its former Strategic Outsourcing and Integrated Technology Services together. The new group, called Infrastructure Services, combines everything from networking to mobility.
According to Gartner’s estimates, IBM’s Global Technology Services segment, which includes Infrastructure Services, lost more than $1 billion in revenue in 2014. Analysts chalked this loss up to new and emerging providers in the market – providers who are both extremely competitive and highly agile.
In the report, Gartner advised IBM to review its strategy and be more open to enabling its clients to use competitors’ cloud services (such as AWS and Azure), as opposed to driving them squarely to its own cloud platform, called SoftLayer.
When it comes time for your business or organization to add outsourcing technical support services – like managed private cloud services and others – you’ll want to make sure you utilize reliable, experienced and professional people.
Here at Be Different Solutions, we help you find outsourcing technical support services from talented, professional people. All of our technical support professionals are located in one of our two Europe- or U.S.-based offices. They’re not only dedicated, driven, experienced and reliable – but they are also all highly proficient in conversational English.
Contact us today to see how we can help you find the right outsourcing technical support help.