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"The AIP will manage the core infrastructure for customers on an outsourcing, or managed services, basis through a set of service offerings that involve the design, building, and operating of the network and IT systems needed to support the ongoing performance of business and production-level applications," said David Tapper, program manager for IDC's Networked Infrastructure Management Services research. "Essentially, the AIP will be a vertically integrated service provider that delivers these services across a multiple set of core capabilities involving networks, servers, applications, and storage."
IDC believes success for AIPs in this space will involve meeting a broad set of criteria that range from ensuring customer control of data and integrating "last mile" infrastructure services to ensuring rapid service provisioning as well as customer care and billing. Paramount to success will be ensuring near 100% infrastructure performance.
"The reliance of customers in outsourcing their entire business infrastructure to AIPs will require these service providers to achieve this level of performance. However, this will demand that AIPs have access to best-in-breed technologies and provide a set of product-agnostic service offerings," Tapper said. "For companies with ties to a product, the threat that competing products could deliver better service quality may seriously limit the ability to win customers."
As for delivering services in a utility-based environment, IDC believes this may prove difficult for traditional service vendors. "The intrinsic nature of a utility is providing low-priced services for a high volume of users in a very short period of time. The delivery process of traditional service providers is almost inherently diametrically opposite in nature to this model and will require fundamental shifts in their ability to meet the demands of provisioning for a computing utility environment. As such, conversion to a utility model may not be possible for these players."
As a result, IDC believes one of the many impacts of the AIP service infrastructure may be a shift away from traditional IT service providers.
IDC's new report eBusiness Application Infrastructure Providers: Market Analysis and Competitor Profiles (IDC #B23609) analyzes the AIP market. The report analyzes the competitor landscape, the impact of providing outsourcing services from an Internet data center, pricing and differentiation strategies, and industry trends -- 18 AIP vendors are also profiled. The report ends with actionable recommendations on issues such as branding, positioning, meeting customer needs, and the need to develop unique differentiation.
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INTERNATIONAL DATA CORPORATION (IDC)
BMI-T has established a long-standing business relationship with the International Data Corporation (IDC). With research centres in over 40 countries and more than 500 research analysts and 3 900 clients world-wide, IDC provides a global market perspective on IT market and technology trends. As the exclusive South African partner of IDC, BMI-T has instant access to IDC's formidable knowledge base and consulting skills, and is positioned to offer African clients access to the full range of IDC 's global research. For more information on IDC products and services, please visit IDCSA on www.bmi-t.co.za or contact: Laurika Kapp BMI-TechKnowledge Group (BMI-T) BMI-TechKnowledge (BMI-T) is Africa 's leading supplier of market intelligence and knowledge-based consulting in the areas of IT, telecommunications and broadcasting. Formed over fourteen years ago, BMI-T provides its clients with an unmatched and comprehensive range of unbiased market knowledge. BMI-T conducts more than 20 000 market research business-to-business and business-to-consumer interviews and more than 100 focus group projects every year. BMI-T has an active ongoing research publications business that has consistently published research-based market analysis covering many facets of the IT, telecommunications and emerging media sectors. This knowledge base provides the platform on which we build our customised research and consulting, including assignments such as market entry strategies, product entry strategies, channel and distribution analysis and African research. For more information please visit our Web site www.bmi-t.co.za or contact us on info@bmi-t.co.za EDITORIAL CONTACTS
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