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Monetizing the Shift to Cloud and Hybrid IT with Services

Picture this scene, which took place last month at Cisco’s Partner Summit in Las Vegas. I had been talking for a few minutes in the lobby of the Venetian with a long-time Cisco partner when he suddenly asked, “Raja, how are you guys at Cisco going to help us use services to capitalize on cloud and hybrid IT?” I answered: “Plenty…and rapidly expanding.”

First the back story, then the details.

By now, we all know that new technology consumption patterns have shifted the business model that customers are demanding. Much of this has to do with the increased influence that line of business decision makers now have on IT buying decisions. Consider this. In just two years, 35 percent of IT spend will reside in the business — outside the control of IT – according to a recent study.1 A whopping 90 percent of IT spend will be controlled by the business in 2020. As the saying goes, “We’re not in Kansas anymore, Toto.”

Then there’s the lightning-quick shift to a variety of new cloud models.  In just two years, cloud spending will account for the majority of new IT spending, according to Gartner.2 That same research also predicts that by the end of 2017, nearly half of large enterprises will have hybrid cloud deployments. Read More »

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Evolving to Cloud and Hybrid IT

For a while now, I’ve been promoting that partners need to adopt a Hybrid IT business model to be successful and stay competitive in a world with more market transitions, more technologies, and more customer choices than ever before.

Customers are consuming IT differently, and line-of-business decision makers have more and more influence on IT decisions. The Internet of Everything offers tremendous opportunity, but requires a new set of services and solutions than many of our partners have offered in the past.

A Hybrid IT business model requires partners to address these market transitions; to provide traditional IT (on premise) solutions, managed services, private/public/hybrid cloud services, packaged with professional services, and offered with different SLAs and consumption models.

Embracing this model opens new opportunities for partners. It may mean expanded reach. It may mean selling into a new vertical, a new geography, or addressing new business needs within an existing customer base.

At Cisco Live Milan this week, Cisco announced the expansion of the Cisco Cloud Portfolio  with the introduction of new products and services, including a new hybrid cloud solution, Cisco InterCloud. Cisco InterCloud aims at lowering the total cost of cloud ownership and creating new pathways to secure public, private and hybrid clouds. Read More »

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