Cloud, mobility are shaping enterprise IT spending

by Shweta Verma    Jul 19, 2013

Leo Joseph

The last few years have seen a tremendous change in the IT spending approach of enterprises. Besides the shift in focus from Capex to Opex, trends like cloud, mobility and big data are changing the way enterprises consume IT. In an interaction with CXOtoday.com, Leo Joseph, Director, Enterprise Sales, PPS (Printing and Personal Systems) Group, HP India, speaks about the emerging trends and how enterprises are adapting. Excerpts:

 

Looking at IT spending among enterprises, what are the changes that you have observed over the last few years?

We are seeing a high-velocity transition across the IT infrastructure. The pace of technology evolution is faster than ever before and that is affecting the way enterprises buy and consume IT. The inherent complexity of IT is a big reason driving this change, as we are seeing enterprises request a simplified IT solution. They want to minimize the complexities of managing multiple and heterogeneous platforms, architectures and applications that they may have adopted over the years. Businesses are also realizing that managing complex IT takes a lot of time, which ultimately costs money.

What is it that is driving the market?

The two big drivers for IT spending of late have been how do businesses optimize their IT and reduce overall operation cost. These two drivers are giving birth to growing adoption of cloud and shared services among a majority of enterprises. Cloud makes IT simple to use and control. Social media is another huge trend affecting large enterprise IT spending who are increasingly looking for ways to integrate social aspects in their business applications touching a large number of stakeholders – whether these are employee-focused or external customer-focused applications.

The third big spending driver is the emergence of big data and the growing realization that enterprises can analyze this data to discover hidden trends and patterns that can be deployed for new business strategies and tactics. Analytics is therefore a huge area of interest. The final major spending trend is the widespread adoption of mobile devices—we are seeing a steady rise in the adoption of smartphones, tablets, hybrids on one hand and notebook PCs on the other.

According to you, which of these are likely to have the maximum impact on enterprise IT spending?

Cloud and mobility are two major trends shaping enterprise IT spending in the last few years. As IT gets increasingly consumed on the go, it also needs to be deployed mobile. This imperative is leading enterprises to set up cloud , making them become the big buyers of large infrastructure in the form of servers, storage devices and network equipment, and software and security on top of that.

 With PC & printer sales constantly on the downslide, how do you view the market evolving?

We may be experiencing a cyclical movement as there are some definite pockets of growth in various geographic regions and various types of products. On the printer side, areas like commercial printing are providing growth and emerging markets such as India are driving growth through the extensive SMB market and the contractual business.

Similarly in the PC market, the overall number decline does not tell the full story. There are some definite pockets of growth. For example, people think that the days of the desktop PC are over. Yet, we are seeing a significant growth in All-in-one desktops, which is a sub-category of desktops. Similarly, the notebook category is expected to register stability.

 We believe the PC market is going through a phase of rapid form-factor evolution and the dominant form-factor of the future is yet to emerge. While the growing market adoption of tablets is a powerful trend, notebook and desktop PCs fill a different need and there will always be a significant market for these. However, the two categories may merge with convertible PCs emerging as the dominant form factor of the future.

What will be HP’s approach in the given scenario?

Going forward, we see the market adapting to new form factors, and we at HP will continue to evolve with the market trends and customer demands. We will continue to strengthen our PC and printing portfolio—including desktops, notebooks, workstations, convertibles, hybrids and AiO—while expanding our offerings in the growing tablet space. We view tablets as an extension of our overall personal systems portfolio, and we have an aggressive tablet strategy that aims to gain enough scale to aid hardware margins while driving attached services and software revenues.

Your advice to CIOs on how to optimize their infrastructure costs…

 

The clear roadmap for CIOs in optimizing infrastructure costs is to keep abreast of latest trends and evolutions emerging in the IT world and finding ways to adopt and align these advancements within their organization strategies. For example, CIOs stand to cut down costs by adopting trends like BYOD or CYOD; or by outsourcing printer fleet management to vendors. It is not always about driving new technology adoption, but about taking innovative approaches to extract maximum benefits from both existing as well as technologies and working out ways to drive business agility and growth. This kind of innovative approach will also help to create a level field among various user groups and in turn driving better collaborative efforts. Making it simpler, a few innovative initiatives of IT and a new approach to this field will bring in the necessary changes and meet the business demands.

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