Dive Brief:
- Three-quarters of tech managers expect their companies to move toward complete adoption of "as a service" solutions in less than five years, according to a Hewlett Packard Enterprise survey of 1,000 IT decision makers in the U.S., Germany and the United Kingdom.
- Adoption of service-based tools is nearing universal levels in enterprise technology. Almost 90%, say their organizations are implementing service-based tools or have completed the process.
- Failure to adopt to the trend will come at a price, according to the tech leaders, who fear lagging adoption will bring about higher costs of maintenance (41%), office space (33%) and power (31%). It will also make their companies more susceptible to cyberattacks in the future, 35% of respondents said.
Dive Insight:
Satisfying enterprise technology needs under a service-based model has become standard in a number of niches, from infrastructure to hardware. Now, that trend has largely become the norm and little is offered outside a service-based model in the enterprise.
Vendors are no longer focusing on delivering their software solutions under on-premise, license-based models. Companies now even lease their printers and other hardware products under a service model, rather than outright purchasing the equipment.
As a service models allow decision makers to focus on strategic initiatives and revenue growth, said Phil Davis, president of Hybrid IT for Hewlett Packard Enterprise, in the survey announcement.
Challenges in as a service adoption remain when it comes to the cloud. Three-quarters (77%) of decision makers say their company data is siloed between a mix of public and private clouds. Two-thirds say migration to the public cloud is "currently stalled" at their organization.
The rise of edge computing stands to impact data dynamics at the enterprise level, Gartner said in its strategic predictions for 2020. The analyst firm expects more than half of data will be created and processed outside data centers or the cloud by 2023.
