Cloud (y) Days - Internal vs External MSPs

IT Transformation Thoughts

Isn’t it odd how much longer it takes the IT infrastructure to evolve in large corporations vs. IT Service Providers? It appears that MSPs (Managed Service Providers) are constantly providing new services that meet the demand from businesses that are either not available or not sufficient from their internal IT departments. Check out incumbents like Amazon Web Services or upstarts like Digital Ocean if you don’t believe me.

Some would think that the competition for new business is what drives these external MSPs to offer new services while simultaneously working to reduce the costs of delivering existing services. Check out this video on AT&T’s very public strategy on a Software Defined Network to improve services to its clients: A Call out to Academia: The AT&T SDN Network Design Challenge

However, isn’t there also competition for the the internal MSPs in large companies? I submit that there is, but from a different source. These internal MSPs are competing with the external MSPs for the Business Unit’s requirements.

This is the driving force for IT transformation and all of this Cloudy talk. It also drives IT to move in new directions specifically competitive with external MSPs such as the provision of virtual machines for development of new web services. Private and Hybrid Cloud is just part of the IT transformation that is necessary for IT to compete effectively. IT also needs to retool their skill sets to better match the external MSPs and it needs to re-think how the IT relationship managers deal with the business units.

Perhaps, IT’s new role is not to recapture the IT spend that has moved to the Business Units but to take on the responsibilities for Governance and Compliance with respect to the BU’s use of the services supplied by these external MSPs?

What think you?