We are all familiar with IT service providers, and we've likely engaged them for various aspects of our IT environment. How has this profession evolved in recent years? We'll delve into this topic in our Public Cloud 1x1.
IT service provider
The conventional IT service provider offers consultation, implementation, and maintenance services for both hardware and software products. They have access to a wide range of solutions, spanning from data centers and workplace solutions like Microsoft Office to modern tools like Data & Analytics.
Over the past few decades, the traditional IT service provider has primarily operated in an on-premises environment, working on their clients' in-house servers or in provided data centers. However, with the advent of modern technologies, the traditional IT service provider has undergone a transformation with several key stages.
From IT service provider to IT system house
One of the next stages in the evolution of IT service providers is the transition into IT “system houses”. These IT system houses continue to play a significant role in the IT industry. They have shifted their focus towards service-oriented business models while maintaining the traditional hardware-centric approach for the sake of completeness.
However, in recent years, another significant transformation has taken place, particularly over the last three to five years. The once-prominent server-based hardware business is gradually declining. Customers are recognizing fewer benefits in housing maintenance-intensive servers in their own premises. These servers not only consume substantial amounts of electricity but also require extensive personnel for management. This shift has been driven by the growing prominence of cloud computing.
In addition to the private cloud, which closely resembles traditional server setups, there are other cloud options. The public cloud offers a more autonomous and scalable alternative, while the hybrid cloud combines elements of both private and public clouds. This evolving landscape reflects the dynamic nature of the IT industry as it adapts to the ever-changing demands and possibilities of modern technology.
Public cloud service provider
This development has also given rise to the Cloud Service Provider. This entity focuses solely on cloud solutions and hosts them, for example, in the regional data centers of hyperscalers like Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Platform, using the Public Cloud as an example.
All solutions, from virtual desktops to connecting remote locations to managing the existing cloud environment through Managed Services, are now in the (Public) Cloud. Customers purchase storage space, infrastructure, and computing power centrally through the Cloud Service Provider of their choice, freeing them from long-term investments.
Just as IT, its products, services, and offerings have continuously evolved over the past decades, the traditional IT Service Provider has undergone a transformation, evolving into the IT Service Provider and eventually the (Public) Cloud Service Provider.