Business as a Service AN IT SERVICE FOR DIGITAL DISRUPTION Unlike traditional IT or business process outsourcing, emerging business-as-a-service (BaaS) offerings use an integrated cloud technology stack to support business development and operations at the core of the customer organization. In short, BaaS has the potential to radically change the outsourcing market. KEY FINDINGS The digital services market is built on the need for continuous service improvement, so it will be far more similar to out-tasking than outsourcing hence our use of the word cloud-tasking. This requires a different business model: an agile, incremental business relationship with the customer, often drawing on project services while continuing to deliver managed services. The mechanism for both buyers and providers moving to this cloud-tasking service acquisition and delivery model is the cloud management platform. The challenge with existing as-a-service capabilities such as IaaS, PaaS and SaaS is that they are technologies that need to be applied. This speaks to a service delivery gap in the cloud market a gap that is just beginning to be filled with business as a service, or BaaS. BaaS is a different proposition from ITO or business process outsourcing because rather than focusing on improving IT infrastructure provision, increasing process efficiency in central admin areas or automating volume, repetitive transactional tasks, BaaS uses an integrated cloud technology stack to support business development and operations at the core of the customer organization. JULY 2015
451 RESEARCH REPORT SNAPSHOT TITLE Business as a Service: An IT Service for Digital Disruption ANALYST Dr. Katy Ring, Research Director Global IT Services RELEASE DATE July 2015 LENGTH 31 pages ABOUT THIS REPORT Digital processes are changing the way we bank, use transportation, and monitor and manage our health, as well as how we access and use technology in the workplace. The requirements of the digital services economy are challenging the usefulness of outsourcing contracts built around traditional technology towers. A big part of the technology answer to supporting the kind of organizational agility we need in the digital era lies with the adoption of cloud technology. This report analyzes new types of business service offerings that are coming to market using cloud technology stacks to better support the digital service requirements of organizations.
Business as a Service: An IT Service for Digital Disruption TABLE OF CONTENTS SECTION 1: EXECUTIVE SUMMARY 1 1.1 INTRODUCTION............................... 1 1.2 KEY FINDINGS................................ 1 1.3 METHODOLOGY............................... 2 SECTION 2: SERVICES FOR THE DIGITAL AGE 3 2.1 CLOUD TECHNOLOGY AND ITO.........................3 Figure 1: Who Should Provide Cloud Services?..................... 4 2.2 NEW CLOUD SERVICE OPPORTUNITIES.....................5 SECTION 3: WHAT IS BAAS? 6 Figure 2: Main -aas Pillars of Cloud.......................... 7 3.1 WHY IS SAAS NOT THE ANSWER?........................7 Figure 3: SaaS Is Not the Answer............................ 7 3.2 BAAS CHANGES THE OUTSOURCING OFFER.................. 8 Figure 4: Moving Up the Value Stack.......................... 9 3.3 THE FUTURE DIRECTION OF ITO LIES WITH THE OUT-TASKING OF DIGITAL PROCESS SERVICES............................ 10 3.4 THE MAIN COMPONENTS OF THE BAAS MODEL................ 10 Figure 5: The Key Components of a BaaS Offering................... 11 SECTION 4: EMERGING OFFERINGS 12 4.1 INSIGHT-DRIVEN PLATFORM SERVICES.................... 12 4.2 FAST-PROTOTYPE SERVICES.......................... 13 SECTION 5: TECHNOLOGY TRANSPARENCY, CLOUD-TASKING AND THE CIO 15 Figure 6: The Continuous Service Delivery Wheel.................. 15 Figure 7: Who Is the Best Provider of Cloud Service Integration?............ 16
451 RESEARCH SECTION 6: COMPETITOR LANDSCAPE 17 Figure 8: Sample BaaS Offerings.......................... 18 SECTION 7: VENDOR SNAPSHOTS 19 7.1 BELL TECHLOGIX............................... 19 7.2 CAPGEMINI.................................. 20 7.3 COGNIZANT................................ 21 7.4 CSC...................................... 22 7.5 DELL..................................... 23 7.6 HP...................................... 24 7.7 IBM...................................... 25 7.8 TECH MAHINDRA............................... 26 7.9 UNISYS.................................... 27 SECTION 8: CONCLUSIONS AND RECOMMENDATIONS 29 8.1 RECOMMENDATIONS FOR BPS PROVIDERS.................. 29 8.2 RECOMMENDATIONS FOR CONSULTANTS AND SIS............. 30 8.3 RECOMMENDATIONS FOR MSPS...................... 30 8.4 RECOMMENDATIONS FOR ITO PROVIDERS................. 30 8.5 RECOMMENDATIONS FOR INVESTORS..................... 31 8.6 RECOMMENDATIONS FOR ENTERPRISE IT................... 31 INDEX OF COMPANIES 32
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