We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers -- AI-generated illustration
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers
    7 Min Read
    chatgpt image jul 21, 2026, 04 34 30 pm
    4 Core Benefits of Predictive Maintenance after Vibration Analysis
    10 Min Read
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results -- AI-generated illustration
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results
    11 Min Read
    chatgpt image jul 13, 2026, 04 23 45 pm
    How Data Analytics Helps Companies Improve User Engagement
    19 Min Read
    chatgpt image jul 13, 2026, 03 59 46 pm
    How Data Analytics Improves Multi-Location Search Strategies
    10 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Are You Wasting IT Services Dollars In Cloud Computing?
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Inside Companies > Are You Wasting IT Services Dollars In Cloud Computing?
Inside Companies

Are You Wasting IT Services Dollars In Cloud Computing?

amisra
amisra
1 Min Read
Are You Wasting IT Services Dollars In Cloud Computing?
Photo by ceparedonda on Pixabay (https://pixabay.com/photos/berlin-architecture-modern-4663539/)
SHARE

The premise for my latest Information Week article, How To Reduce IT Service Costs In The Cloud, is that companies are paying unnecessary consulting and support fees for cloud apps, increasing their total cost of ownership by up to 50%. Several commentators disagree – their main contention is that services will always be required in order to provide a better fit with a customers needs or to integrate with other systems.

They aren’t wrong. Application integration, for instance, does require services. However, the cost of both middleware products as well as supporting services has been lowered significantly since integration became available as a service (ask Informatica). You will notice a similar trend with professional services in the cloud – they cost much less than professional services for on-premise software. In fact, traditional systems integrators have not yet been super successful in the cloud, primarily because it’s not providing them as much services revenue as on-premise software has been.

My point is that quite a few (but not all) of the professional services in the cloud are either costing much less (most people would agree with that) or are not required (since they are either redundant or available for free).

Let’s understand why. Cloud is a new technology but, unlike other new technologies, it’s a game-changer which drastically alters the existing business models. The new model forces cloud providers to provide certain services for free, so that they can keep customers long-term (this wasn’t needed in the on-premise world), not because it’s some gimmick (in fact, since the cloud model is subscription-based there isn’t any room for gimmicks – sustained customer satisfaction is of paramount importance). Just the way Starbucks provides internet for free, in the hope you will buy their coffee (and scones, which I like), but if you don’t, you still get something (internet and a decent environment to use it) for nothing.

More Read

Reclaim email as a business tool
Reclaim email as a business tool
So Does Toyota Really Have a Quality Issue?-Lean Six Sigma Perspective
We’re Not Artists: The Craft of Influencing Decision Makers
SAP’s New Fraud Management Analytical Application
A Question of Scope

All this is great news for customers of cloud apps. They will be the ones to benefit most.

Now, does this mean that there will be no professional services needed and all systems integrators will eventually go out of business? Not at all. There will always be areas needing services. There may still be a lot more consulting services required, for instance, to sort through the mess created by a proliferation of niche cloud providers. Systems integrators that provide application support may have to start focusing on providing that support to cloud providers, instead of companies. In summary, if you are a provider of professional services, cloud computing will force you to rethink your portfolio, value proposition and target customer base … at a minimum.

Alok Misra

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

Flat editorial illustration: The article is about replacing informal co-located management with deliberate asynchronous workflows
Managing a Software Development Dedicated Team Across Time Zones
Development Exclusive Software
Technical architecture diagram and decision framework for wikipedia editing services and ai training data: why llms still treat wikipedia as a source of truth
Wikipedia Editing Services and AI Training Data: Why LLMs Still Treat Wikipedia as a Source of Truth
Artificial Intelligence Exclusive
Flat editorial illustration: The article connects fragmented social-service records through shared pathways and selective informa
Turning Disconnected Information Data Into Better Social Service Outcomes
Big Data
Flat editorial illustration: The article explains how one KYC upload becomes separate records held by a verification vendor and a
What Happens to My KYC Data Behind the Approval Screen?
Big Data Exclusive

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

LinkedIn Signal = Exploratory Search for Twitter
Inside Companies

LinkedIn Signal = Exploratory Search for Twitter

5 Min Read

Data Analysis Can Transform HR Department Processes

3 Min Read
Modern eCommerce, or is that just next gen commerce?
Inside Companies

Modern eCommerce, or is that just next gen commerce?

10 Min Read
Smarter Agent Performance Management
AnalyticsBest PracticesBig DataBusiness IntelligenceCRMInside CompaniesPolicy and GovernanceWorkforce Analytics

Smarter Agent Performance Management

7 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

5 Great Tips for Using Data Analytics for Website UX
5 Great Tips for Using Data Analytics for Website UX
Big Data
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-26 SmartData Collective. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?