Are you planning to change your enterprise technology and sourcing relationships in the next two to three years? There are a variety of forces -- both technological and geopolitical -- that point toward many CIOs making wholesale changes in the near future.
Research firm Gartner is predicting that 70% of CIOs worldwide will change their technology and sourcing relationships in the next two to three years. This is a result of the degree of change with which IT leaders are struggling within their own organizations, according to a prepared statement released March 19 from Gartner.
Eric Rocco, managing VP at Gartner, said that CIOs "are strongly considering changing the providers they work with as part of responding to this change. Market share will shift to service providers able to help clients respond to the business and IT opportunities and challenges that are overwhelming more than half of organizations today."
Dramatic changes in businesses' technology are definitely part of the picture. As Rocco noted in Gartner's statement:
Digital business is an unstoppable and irresistible catalyst for change -- change that will affect the fundamental foundations and baseline assumptions of every business, Mr. Rocco said. The digital business revolution is underpinned and enabled by the macro technology forces of cloud, social, analytics, mobility and the Internet of Things. Not every business fundamental will need to change to the same degree, nor will every technology driver have a role to play in every business scenario; however, businesses that decide to "wait and see" are likely to become irrelevant.
However, there are other significant forces behind this shift that can't be ignored, most notably the geopolitical conundrum raised for many multinational corporations in the wake of the NSA surveillance revelations last year by Edward J. Snowden. According to a March 21 article in The New York Times, revelations of NSA spying could cost US technology companies $35 billion by 2016.
According to the article:
Though it is hard to quantify missed opportunities, American businesses are being left off some requests for proposals from foreign customers that previously would have included them, said James Staten, a cloud computing analyst at Forrester who has read clients' requests for proposals. There are German companies, Mr. Staten said, "explicitly not inviting certain American companies to join."
A March 22 article in the New York Times titled "N.S.A. Breached Chinese Servers Seen as Security Threat," reveals further information about the NSA's reach.
According to that article:
The agency pried its way into the servers in Huawei's sealed headquarters in Shenzhen, China's industrial heart, according to N.S.A. documents provided by the former contractor Edward J. Snowden. It obtained information about the workings of the giant routers and complex digital switches that Huawei boasts connect a third of the world's population, and monitored communications of the company's top executives. One of the goals of the operation, code-named "Shotgiant," was to find any links between Huawei and the People's Liberation Army, one 2010 document made clear. But the plans went further: to exploit Huawei's technology so that when the company sold equipment to other countries -- including both allies and nations that avoid buying American products -- the N.S.A. could roam through their computer and telephone networks to conduct surveillance and, if ordered by the president, offensive cyberoperations.
Is your organization going to join the technology and service provider overhaul predicted by Gartner? What are the major drivers behind your organization's technology and service provider decisions? Are the NSA revelations affecting your choices when it comes to purchasing IT products and services? Tell us what you think in the comments below.
— Susan Nunziata, , Director of Editorial, EnterpriseEfficiency.com