2016 can definitively be classified as the year of the Cloud. The momentum continues to grow and with it is a stark realization that Managed Services is an integral part of the cloud migration. A report by Marketsandmarkets Research, estimates Managed Services to have a Compound Annual Growth Rate (CAGR) of 10.8% year-over-year, reaching to $245 Billion in 2021.We at HEXstream understand the drivers for this growth and are well positioned to serve our customers.
Managed Services have come a long way from “Your mess for less” value proposition to becoming a critical success factor for organizational evolution. Let’s take a few examples of billion dollar companies that didn’t exist five years ago – Snapchat (founded 2011, $16 billion), Zenefits (founded 2013, $4.5 billion), Social Finance (founded 2011, $4 billion), Wish (founded 2011, $3 billion), Lyft (founded 2012, $2.5 billion), Instacart (founded 2012, $2 billion), Blue Apron (founded 2012, $2 billion), Avant (founded 2012, $2 billion). There are a few commonalities amongst these companies. First, these companies rely very heavily on Advanced Analytics. Second, the IT architecture is very Cloud-centric, and more importantly, they all understand that decision making is not a static process and as a result, the line between Implementation and Managed Services doesn’t exist thus making Managed Services the vehicle for constant innovation and evolution.
New companies providing better products and/or services put financial pressure on organizations that are either unwilling or unable to change. Consumers today are no longer satisfied with what they get. If they get don’t what they want, they start a business to deliver the next generation of products and services. And that means the companies who choose not to evolve become history. Research from Richard Foster, Yale University suggests that “The average lifespan of a company listed in the S&P 500 has decreased from 67 years in the 1920’s to 15 years today.” Furthermore, it is estimated that 40% of today’s Fortune 500 companies will be extinct in next 10 years.
Staying competitive and relevant is not an opportunity but a necessity for survival. One way of securing the future is to start amassing a large team to support your technology needs at a dizzying cost structure or alternatively focus on your core competencies and partner with companies to manage your IT support processes especially in the areas of Analytics and Cloud computing.
We can help you identify the right things to do from Enterprise Information Systems perspective, help in doing things right and provide continuous and on-going support.
HEXstream is a digital transformation company that is highly specialized in Data Fabric and Analytics. We provide expert consulting services to help clients streamline their business processes through the power of prescriptive and predictive analytics.
Please contact us at firstname.lastname@example.org for your cloud migration, Analytics and Managed Services need.
About the Author
Anshoom Jain is the Head of Managed Services and Project Management Organization at HEXstream. With over 30 years of consulting and project experience, Anshoom has contributed to several Project Management Institute (PMI) publications such as PMBoK, Standards of Program Management, and Standards of Portfolio Management. Anshoom received his Bachelor’s of Technology from Indian Institute of Technology and his MBA from University of Minnesota’s Carlson School of Management.