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TECH SUPPLIER Aug 2019 - Market Perspective - Doc # US45420219

Technology Outsourcing: From Converging Markets to Concentration into Pure-Play Cloud Service Providers

By: David TapperProgram Vice President, Outsourcing and Managed Cloud Services

Abstract

This IDC Market Perspective discusses how technology outsourcing services markets are converging to what IDC refers to as managed cloud services.

"The technology outsourcing services markets are undergoing a fundamental shift to a new consumption and delivery model, referred to as managed cloud services, in which these markets are converging into a common set of delivery capabilities that are increasingly competing with hyperscalers (e.g., AWS, Google, Azure, and Alibaba)," says David Tapper, VP, Outsourcing and Managed Cloud Services at IDC. "Building a successful managed cloud services business will require managed SPs to go to market with workload-centric managed cloud services, drive differentiation using unique capabilities, consider a distinct business unit for cloud, understand total risk and risk tolerance, develop a long-term road map of transformation, and define the 'end state' and structure of a pure-play cloud provider."


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