Skip to main content

IT Operations Management Embraces Open Source

Open source software adoption continues to disrupt the traditional IT markets, as enterprise CIOs and CTOs seek ways to evolve by working with progressive vendors and service providers who have a proven track record of Open Innovation.

The growth of digital business transformation and the Internet of Things (IoT) is expected to drive large investment in IT operations management (ITOM) through 2020, according to the latest global market study by Gartner. A primary driver for organizations moving to ITOM open-source software (OSS) is lower cost of ownership.

OSS ITOM Market Development

While acceptance of OSS ITOM is increasing, traditional closed-source ITOM software still has the biggest budget allocation today. Moreover, complexity and governance issues that face users of OSS ITOM tools cannot be ignored.

"In fact, these issues open up opportunities for ITOM vendors. Even vendors that are late to market with ITOM functionality can compete in this area," said Laurie Wurster, research director at Gartner.

Gartner believes many enterprises will turn to managed ITOM or ITOM as a service (ITOMaaS) enabled by open-source technologies and provided by a third party. With OSS, vendors can provide more cost-effective and readily available ITOM functions in a scaled manner through the cloud.

Through 2020, public cloud and managed services are expected to be leveraged more often for ITOM tools, which will drive growth of the subscription business model for both cloud and on-premises ITOM.

However, on-premises deployments will still be the most common delivery method. This imposes multiple challenges to incumbent ITOM vendors. First, those vendors that do not offer a cloud delivery model will face continuous cannibalization from ITOM vendors that can deliver ITOM through both cloud and on-premises.

Second, platform vendors are providing some native ITOM functionalities on their public clouds. Customers that are running workloads solely on these platforms may prefer these native features. There are also hybrid requirements for ITOM tools that can seamlessly manage both cloud and on-premises environments.

Future of Cloud Services and OSS for ITOM

Customer demand has driven traditional software vendors to transform and adapt to the changing technology and competitive landscapes. Competitive pressure from cloud (SaaS offerings) and commercial OSS (offerings with a free license plus paid support) is forcing ITOM providers to move toward subscription-based business models for both cloud and on-premises deployments.

The influx of new, smaller ITOM vendors focused on one or two major tool categories will continue to cause disruption for large traditional suite vendors. Given this situation, traditional vendors will need to react by changing how their products fit together.

More importantly, according to the Gartner assessment, traditional vendors need to change how their solutions are sold as customers exert significant pressure to shift to offering cloud-based services.

Popular posts from this blog

Digital Transformation Investment at $3.4 Trillion

Business technology leadership matters. Across the globe, more leaders have been pursuing bold Digital Transformation (DX) initiatives with the goal of creating new sources of business value through digital products, services, and experiences. As an additional benefit, the COVID-19 pandemic revealed that digital transformation efforts improve an organization's resilience against global market disruptions. Global DX investment is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to the latest worldwide market study by International Data Corporation (IDC). Digital Transformation Market Development "Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust," said Craig Simpson, senior research manager at IDC . The benefits of investing in DX technology -- including aut

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p

Precision Medicine Spend to Reach $132.3 Billion

Precision Medicine uses molecular info to extract the optimum medical method from diagnostic protocols, by merging the impact of environmental and genetic factors. Data access is essential, with genetic metabolic and clinical data used to build a fuller picture of a patient's biology. Moreover, the primary aim of precision medicine is to design and optimize a pathway for diagnosis, therapeutic intervention, and prognosis, using large biological datasets. Personalized, evidence-based medicine uses stored health data, which includes patient diagnosis, laboratory work, insurance claims, and demographic information. The results enable healthcare providers to predict and prevent some illnesses. Precision Medicine Market Development According to the latest worldwide market study by Juniper Research, the total investment in precision medicine will reach $132.3 billion globally by 2027 -- that's increasing from only $35.7 billion in 2022. The significant market growth of 270 percent is