GEC NEWS WIREThe growth of digital business and the Internet of Things is expected to drive large investment in IT operations management (ITOM) through 2020, according to Gartner. A primary driver for organizations moving to ITOM open-source software is lower cost of ownership. “Complexity and governance issues that face users of OSS ITOM tools cannot be ignored. In fact, these issues open up opportunities for ITOM vendors. Even vendors that are late to market with ITOM functionality can compete in this area,” said Laurie Wurster, Research Director at Gartner.
Gartner believes many enterprises will turn to managed ITOM or ITOM as a service enabled by open-source technologies and provided by a third party. With OSS, vendors can provide more cost-effective and readily available ITOM functions in a scaled manner through the cloud.
Through 2020, public cloud and managed services are expected to be leveraged more often for ITOM tools, which will drive growth of the subscription business model for both cloud and on-premises
ITOM. However, on-premises deployments will still be the most common delivery method. This imposes multiple challenges to incumbent ITOM vendors. First, those vendors that do not offer a cloud delivery model will face continuous cannibalization from ITOM vendors that can deliver ITOM through both cloud and on-premises.
Second, platform vendors, such as Microsoft Azure and Amazon Web Services, are providing some native ITOM functionalities on their public clouds. “Competitive pressure from cloud and commercial OSS is forcing ITOM providers to move toward subscription-based business models for both cloud and on-premises deployments,” said Matthew Cheung, Research Director at Gartner.
