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
    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
    cybersecurity efforts
    How Behavioral Analytics and AI Are Redefining Cybersecurity for Boca Raton Businesses
    14 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

Data Mining Improved Company’s Revenue By 187%
Data Mining Improved Company’s Revenue By 187%
Tweety Bird and Aha! Moments
Resource Mistakes, Part IV: Expecting Complete Obedience
We’re Not Artists: The Craft of Influencing Decision Makers
3 Tips for Selling Your Boss on Big Data

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

Analyst points at colorful circular data dashboard on screen - information technology business metrics
How Fragmented Workplace Tech Undermines Reliable Business Metrics and Reporting
Cloud Computing Exclusive Infographic IT
Using Multi-Source Data and Analytics to Detect Operational Drift Across Franchise Networks -- AI-generated illustration
Using Multi-Source Data and Analytics to Detect Operational Drift Across Franchise Networks
Exclusive Infographic
Beyond The First Impression: The Long-Lasting Impact Of Sensory Marketing -- AI-generated illustration
Beyond The First Impression: The Long-Lasting Impact Of Sensory Marketing
Infographic Marketing
The Infrastructure Gap Slowing Data Center Growth -- AI-generated illustration
The Infrastructure Gap Slowing Data Center Growth
Big Data Cloud Computing Exclusive Infographic IT

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

Bring Your Own Software
Best PracticesBusiness RulesCloud ComputingCollaborative DataCulture/LeadershipData ManagementInside CompaniesITLocationMobilityPolicy and GovernanceSecuritySoftware

Bring Your Own Software

4 Min Read
3 Reasons why you should provide Customer Support on Social Media
Inside Companies

3 Reasons why you should provide Customer Support on Social Media

4 Min Read
CIOs Focusing Less on Infrastructure, More on Innovation
Best PracticesCloud ComputingCulture/LeadershipInside Companies

CIOs Focusing Less on Infrastructure, More on Innovation

5 Min Read
Silicon Valley: From Electronic Warfare to Big Data
Big DataBusiness IntelligenceCloud ComputingInside CompaniesITMarket ResearchMobilitySocial Data

Silicon Valley: From Electronic Warfare to Big Data

3 Min Read

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

Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive

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?