The IT industry is in a state of significant flux. Paradigms are changing and so are the underlying technologies. Along with these changes come the way we think about solutions. Over time, IT organizations have amassed a phenomenal number of solutions, vendors, complex configurations and experience. Continuing to support that ever-expanding model is starting to show cracks. Trying to sustain this approach is just not possible…nor should it be. It is time for a change. Consolidation, integration, efficiency and value creation are the current focal points. Those shifts create a significant shift in how we function as IT organizations and providers.
Changes in Buying Habits
In order to truly understand the value of an ecosystem, one first needs to understand the change in buying habits. IT organizations are making a significant shift from buying point solutions to buying ecosystems. In some ways, this is nothing new. IT organizations have bought into the solutions from major providers for decades. The change is in the composition of the ecosystem. Instead of buying into an ecosystem from a single provider, buyers are looking for comprehensive ecosystems that span multiple providers. This lowers the risk for the buyer and creates a broader offering while providing an integrated solution.
Creating the Cloud Supply Chain
Cloud Computing is a great use-case of the importance of building a supply chain within the ecosystem. Think about it. Applications, services and solutions that IT organization provides to users are not single-purpose, non-integrated solutions. At least they shouldn’t be. Good applications and services are integrated with other offerings. When buyers choose a component, that component needs to connect to another component. In addition, alternatives are needed, as one solution does not fit all. In many ways, this is no different from a traditional manufacturing supply chain. The change is to apply those fundamentals to the cloud ecosystem.
In concert with the supply chain, each component needs solid integration with the next. Today, many point solutions require the buyer to figure out how to integrate solutions. This often becomes a barrier to adoption and introduces risk into the process. One could go crazy coming up with the permutations of different solutions that connect. However, if each solution considered the top 3-4 commonly connected components, the integration requirements become more manageable. And they are left to the folks that understand the solutions best…the providers.
As cloud-based ecosystems start to mature, the natural progression is to develop cloud verticals. Essentially, creating ecosystems with components for a specific vertical or industry. In the healthcare vertical, an ecosystem might include a choice of EHR solutions, billing systems, claims systems and patient portal. For SMB or Mid-Tier businesses, it might be an accounting system, email, file storage and website. Remember that the ecosystem is not just a brokerage of selling the solutions as a package. It is a comprehensive solution that is already integrated.
Bottom Line: Buyers are moving to buying ecosystems, especially with cloud services. The value of your solution comes from the value of your ecosystem.