Skip to main content

The $7 Billion Opportunity that Legacy IT Vendors Ignored

How did the Shadow IT phenomenon disrupt an established industry, when the signs of growing discontent were so clear and obvious? Many CIOs have been challenged to offer a similar experience -- easy to use, rapid provisioning of infrastructure -- to compete with the savvy public cloud service providers.

Meanwhile, most of the traditional IT vendors seemed to have little appreciation for shifting customer needs -- delivering their compute and storage in the same old way, regardless of the implications.

Not being oblivious to emerging market demand, new entrants seized the opportunity by creating a better way. As a result, the continued adoption of hyper-converged platforms has invigorated the waning data center IT infrastructure market.

But deployment expansion reveals even more challenges ahead that legacy vendors must address to preserve sales momentum -- as the market quickly departs from complex, stand-alone hardware deployments.

Hyperconverged Systems Market Development

According to the latest worldwide market study by Technology Business Research (TBR), the need for agile, cost-effective and easily managed infrastructure will drive a 50 percent CAGR from 2015 to 2020 for hyperconverged platforms, leading to a nearly $7 billion market by 2020.

"As some customers in mid-sized organizations expand their hyperconverged footprint, they are grappling with deployment steps that actually take more time than deployment of traditional, stand-alone infrastructure," said Christian Perry, principal analyst at TBR.

According to the TBR assessment, these include configuration, optimization and even the purchase itself. Considering that hyperconverged is inherently designed to simplify IT, successful vendors must ensure customer expectations match reality for deployment complexity.

Company-wide perceptions of hyperconverged platform deployments can differ from those of traditional infrastructure due to the expectations of business leaders for a seamless transition to the new technology.

Further, lines of business within organizations are sharply focused on the benefits that hyperconverged platforms can deliver post-deployment, including cost reduction and higher IT production levels.

Evolution of Data Center Transformation

TBR analysts believe that this focus leads to an anticipation that amplifies the urgency around deployments and pressures IT organizations to show quick time to value with their new investments in hyperconverged technologies.

New architectures often encounter growing pains as customer adoption expands. However, working on-site with customers through demonstrations, trial deployments and training throughout the purchase and deployment process will help vendors prevent customer frustration as they adjust to their new technology.

This is critical, because research shows satisfaction is strong once the new architecture is up and running. The transition of the data center will continue alone this path. Legacy IT vendors must adapt, or they'll become irrelevant.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Energy Sector IoT Cybersecurity Gains Momentum

The electric distribution industry continues to invest in digital transformation projects. Advanced Metering Infrastructure (AMI) technology is becoming a driver for connected electricity meters, which will reach an installed base of 1.3 billion by 2027. AMI growth is prompting utilities and energy suppliers to revisit their IT infrastructure security and device management operations, according to the latest worldwide market study by ABI Research. Energy Infrastructure Security Market Development Digitization of traditional electricity grids and the modernization of the aging energy infrastructure is among the top concerns for utility operators and governments worldwide. Security for last-mile energy consumption applications was frequently overlooked. "However, the introduction of AMI, smart metering, and grid digitization is steadily increasing spending for secure management services, assisting implementers to transition to IT (information technologies) and OT (operational techno