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Will the cloud help your business survive?




 The business landscape for IT services companies has changed almost beyond recognition in recent years. The emergence and adoption of cloud computing has given organisations the ability to transact and make decisions faster – and with greater accuracy – than ever before.

Other shifts, such as the increasing focus on e-commerce and the immediacy of social and mobile are also piling on the pressure.

ITSM firms must adapt or risk becoming extinct. But it’s not enough to just acknowledge a need to change – you need to know when and how to do it.

If you’re a large firm, you need to think and act as agile as a start-up. While, if you’re a newbie, you’ll need to quickly gain the credibility and scale of the more established players, getting to market rapidly and expanding internationally.

“All ITSM companies – whether VARs or MSPs etc. – are having to restructure their businesses in the face of changing demand. They’re shifting from a pure focus on just products or services to offering a mix of products, services and subscription based business models,” said David Turner, Senior Director, EMEA for Oracle NetSuite.

“Shrinking margins are having a real impact on their business as they try to juggle the need for higher volumes while keeping costs down and being much more efficient. Some firms are facing the need to increase volumes by 3-400% a year just to stand still. Automation is one answer and is a way of being able to do more.”

Existing business models are being challenged and, to remain relevant, organisations are having to reinvent who they are and what they do, according to Turner.  But, he added, the cloud offers much potential for support in these endeavours.

Even for businesses that are standing still, automation can help free up valuable resources rather than simply being used as a cost-cutting measure, added Steve Brooks, principal analyst at Creative Intellect Consulting.

“A finance team could spend days working on month-end close. With automation, it can be measured in hours”. 

Brooks added: “The market is evolving and changing. At the same time, opportunities are both shrinking and growing. ITSM companies need to keep aware of the future market and understand what is adding value. They need to get close to customers. Vendors cannot have 1:1 relationships with every customer – it just doesn’t scale”.

Change needs to be addressed in three ways :

1) Operationally and through automation. 

2) Business models need to be reassessed.

3) Through routes to market.


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