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Most CIOs believe infrastructure outsourcing will continue to increase as a trend, although it is by no means universal.
One of RTI's attractions is that it promises to allow an "on-demand" sourcing model, where computing power is drawn down and paid for as needed. Increasingly, external service providers are offering such an approach, with infrastructure being paid for based on business-transactions metrics.
As much as possible, external service providers are trying to create real-time infrastructures to align their interests and cost models with the on-demand revenue stream. Over the next few years, they should be able to achieve that. For now, external service providers are leading with on-demand pricing and getting as close as possible as they can to real-time infrastructure.
Licensing of software and hardware components is another key commercial aspect of the RTI journey. To gain the full benefits of real-time infrastructure, hardware and software licensing must be based on usage, as opposed to a simple ownership model. Other than mainframes, there is little evidence of hardware and software vendors adapting their pricing models to the real-time model.
Enterprises should keep a watch on the vendors and strive to create a clear link between business transactions and infrastructure usage, to facilitate such licensing models as they become available.
Merge business needs and technology and commercial considerations. To navigate the infrastructure path, CIOs need to have a clear road map for their IT infrastructure that aligns with business needs. They then need to be willing to invest tactically to get there. "A five-year vision with a quarterly plan," as one CIO put it to me recently. To set the vision, ask yourself some basic questions: How does your infrastructure fit to date? Where do you need to get to?
Also, the technology path must be complemented with smart commercial decisions. Follow these seven best-practice rules.
Align all activities with business needs. Use this as the base for business case justifications and commercial negotiations.
Plan for short-term return on investment and long-term vision. For example, many CIOs choose to centralize infrastructure where they meet with fewer political issues, but they should ensure that the architectural design will allow later inclusion of a broader set of infrastructures. And while virtualization business cases might not always stack up at present, it makes sense to get some experience with them, to prepare for future adoption.
Aim to reduce complexity at every stage. Create a plan of how many components you will remove over defined time periods.
Involve, educate and sensitize stakeholders. Increase the shared understanding between business and IS about the less tangible benefits of infrastructure, especially agility.
Mitigate risk through partnerships. Look for external service provider relationships that align interests - for example, ones that require outsourcers to refresh infrastructure to ensure continued performance.
Re-evaluate sourcing options as service provider capabilities improve. Many service providers are evolving their pricing and business models. Keep a close watch on the possibilities, rather than maintaining your enterprise's position on sourcing regardless.
Monitor and factor licensing capabilities into the plan. Understand your software and hardware vendors' approaches, and factor this in to any procurement decisions.
The real-time infrastructure picture is emerging as pieces of it come together. Each piece represents a choice for CIOs and a potential step on the road map toward the value that RTI represents. By engaging stakeholders, clarifying options and matching business needs, CIOs are in a position to start harvesting that value.
Andrew Rowsell-Jones is vice president and research director for Gartner's CIO Executive Programs.
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