85% of Enterprises Report That Modern IT Infrastructure Is the Bedrock of Digital Transformation—Everest Group

Most enterprises believe their IT infrastructure isn’t future-ready. Everest Group says enterprises need ‘invisible’ Infrastructure 3.0, underpinned by AI, analytics, and automation, to drive digital transformation.


According to Everest Group, nearly 85% of enterprises believe that IT infrastructure is the bedrock of business transformation initiatives; however, most enterprises believe that their current IT infrastructure services model is not ready to cater to their digital needs.

Everest Group asserts that digital enterprises need to consider a new model for IT infrastructure – Infrastructure 3.0, where the focus of IT infrastructure management is on improving business metrics instead of pre-defined IT SLAs and TCO management. Infrastructure services need to be underpinned by artificial intelligence (AI), analytics, and automation to drive self-healing, self-configuring systems that can dynamically and autonomously adapt to changing business needs, thus creating an “invisible” infrastructure model that is highly secure and requires minimal oversight.

“With the concept of ‘invisible infrastructure,’ we’re suggesting that IT infrastructure must evolve to become a proactive enabler of business innovation with minimal human intervention,” said Chirajeet Sengupta, partner, Information Technology Services, at Everest Group. “To achieve Infrastructure 3.0, enterprises must focus their IT investments on the three I’s—invincible, interoperable and intelligent. In other words, enterprise must build a resilient and secure infrastructure that protects the business, is seamlessly interoperable across stacks, and uses intelligent tools to continuously evolve with business needs.”

Detailed recommendations for achieving Infrastructure 3.0 are offered in Everest Group’s recently published report, “Exploring the Enterprise Journey Towards ‘Invisible IT Infrastructure’: Cloud and Infrastructure Annual Report 2019.” This annual research also deep dives into the cloud and infrastructure services (IS) landscape. It provides data-driven facts and perspectives on the overall market. The research covers cloud and IS adoption trends, demand drivers, and buyer expectations. The research analyses buyer challenges, trends shaping the market, and provides an outlook for 2019-2020 for the broader IT as well as cloud and IS market.

Highlights of the Cloud and IS market analysis:

  • Enterprises’ need for business transformation has increased the number of consulting-led IS engagements: 68% of IS engagements in 2018 had consulting services in their scope.
  • Change management initiatives will be crucial for service providers going forward, as adoption rates are a crucial metric for buyers.
  • The cloud and infrastructure market in the telecommunication industry in North America is booming primarily due to focus on 5G implementation. Adoption within the retail industry is driven by buyers focusing on enhancing customer experience with digital initiatives.
  • Going forward, enterprises expect infrastructure services to enhance business metrics in addition to reducing costs through outsourcing.
  • Vendor-agnostic behavior will continue as buyers expect agile and continuous innovation and higher value from outsourcing contracts.
  • Cloud adoption is rising, with hybrid cloud becoming the preferred model for enterprises. Service providers are best placed for solutions that will enable hybrid cloud as well as multi-cloud adoption amongst enterprises.
  • Service providers need to provide interoperable infrastructure capabilities to enable enterprises in their digital journeys.

***Download a complimentary 12-page abstract of the report here.***

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