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

Who will manage Big Data?
Who will manage Big Data?
Design and Change Management
The Fundamental Techie
Amazon: Using Big Data Analytics to Read Your Mind
The Successes of Faster, More Frequent Failure

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

How Digital Knowledge Repositories Facilitate Self-Directed Research and Information Discovery -- AI-generated illustration
How Digital Knowledge Repositories Facilitate Self-Directed Research and Information Discovery
Exclusive News
7 MDR Providers Combining Offensive Security Testing With 24/7 Monitoring -- AI-generated illustration
7 MDR Providers Combining Offensive Security Testing With 24/7 Monitoring
Exclusive IT Security
The Information Governance Practices That High-Demand Social Work Roles Require -- AI-generated illustration
The Information Governance Practices That High-Demand Social Work Roles Require
Data Management Exclusive Policy and Governance Security
8 MCP Tools for Market and Consumer Intelligence Workflows -- AI-generated illustration
8 MCP Tools for Market and Consumer Intelligence Workflows
Artificial Intelligence Exclusive

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

Cyberwar? What Cyberwar?
Inside Companies

Cyberwar? What Cyberwar?

7 Min Read
Big Data Empowers the InterContinental Hotel Group
AnalyticsBest PracticesBig DataBusiness IntelligenceCulture/LeadershipData ManagementDecision ManagementInside CompaniesKnowledge ManagementMarket ResearchMarketingPolicy and GovernancePredictive AnalyticsUnstructured Data

Big Data Empowers the InterContinental Hotel Group

7 Min Read
I Tweet Therefore I Am
Inside Companies

I Tweet Therefore I Am

3 Min Read
Why Does Shaken Confidence Reinforce One’s Advocacy?
Inside Companies

Why Does Shaken Confidence Reinforce One’s Advocacy?

4 Min Read

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

The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
Chatbots
5 Great Tips for Using Data Analytics for Website UX
5 Great Tips for Using Data Analytics for Website UX
Big Data

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?