Two in three enterprises are not prepared for “as a service” economy

(c) Yanik

Almost half of enterprise service buyers polled by HfS Research say their core enterprise processes will be delivered ‘as a service’ within five years, while almost one in 10 (9%) believe it will never happen.

The report, sponsored by Accenture and titled “Beware of the Smoke, Your Platform is Burning”, asserts the ways enterprises buy and receive services will undergo unprecedented change – but as one would expect, the pace of change is on the glacial side.

More than half of enterprise buyers (51%) believe having analytics, automation and proactive intelligence capabilities today would have a “massive impact.” While 83% of service providers surveyed saw ‘as a service’ as critical, investments in such initiatives as robotic process automation (32%) and cognitive computing (24%) are comparatively low.

The one stat which exemplifies the need for change is almost half (44%) of senior executives surveyed said they would write off their legacy IT investments if they could find the right solution which immediately gave them greater value. Elsewhere, executives see cloud as holding the most promise for delivering value, with more than a quarter (27%) of buyers expressing interest compared to current investments with “plug and play” services.

In all, the eight ‘ideals’ for companies moving away from legacy operations towards an ‘as a service’ play include design thinking; business cloud; intelligent automation; proactive intelligence; intelligent data; writing off legacy systems; intelligent engagement; and brokers of capability.

“Enterprises are facing enormous challenges from the digital business evolution and other competitive forces to increase revenue and decrease costs while improving the client experience, but our research shows that there’s still not enough of a burning platform – or capability – to drive change in the near term,” said Michael Corcoran, senior managing director of global growth and strategy at Accenture.

Phil Fersht, HfS Research CEO and founder, added: “It’s the forward thinking service buyers and providers who set out their vision and path forward for sourcing with defined business outcomes aligned to the as a service ideals that will achieve success. The conservative among us who refuse to accept these times of unprecedented, disruptive transition will be competitively challenged.”

You can find the report here. in hearing industry leaders discuss subjects like this and sharing their use-cases? Attend the co-located IoT Tech Expo, Blockchain Expo, AI & Big Data Expo and Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London and Amsterdam and explore the future of enterprise technology.

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Bawa Grover
9 Sep 2015, 3:17 p.m.

This is absolutely correct. We are a relatively small management consulting firm- which is a 100% cloud based buyer of "as a service" products/services. And given our own extensive usage and success, we end up working with most of our clients on such platforms and end up guiding them guiding them to adopt this path. Many of our clients are SMB outsourcers or buyers of services - we not just guide them on this path(because it makes perfect business sense) and is more agile & innovative, we've started observing far less resistance in these discussions than even two years back. This is the future and those who continue to resist will alas be forced to change by market forces. Legacy systems - have an effective operating life left of just another few months/years. Change !