Tuesday, May 31, 2016

More Cloud Means Fewer Moves, Adds, Changes: Bye Bye MAC Revenue

Disruption across the information technology and communications businesses is a virtual certainty as cloud-based computing grows.

And that applies equally to sales channels, software platforms, hardware suppliers and services operations. For decades, revenue models in some parts of the business have been built on “moves, adds and changes.”

As enterprises, mid-market and small business customers move operations to cloud-based alternatives, the revenue formerly earned by MACs can diminish.

Hutchinson Networks, a U.K. systems integrator and professional services provider, provides a case in point.

The fundamental problem: enterprises won't need systems integration and professional services if they shut down their IT operations and move to the cloud.

One example: Hutchinson used to support SMEs with their own data center operations, to support Microsoft Exchange, Active Directory, Sharepoint and phone services.

Increasingly, those businesses are going to Office 365, and don't need on-premises computing. That also means they do not require the support for owned facilities and systems that Hutchison Networks used to support.

The fundamental problem for some IT support operations is that more cloud computing means fewer MACs. And that means a diminished  business role for IT services companies.

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