Apply CREAMS to your IT sourcing pain By Ernie Zibert Copyright 2012 Ernie Zibert Smashwords Edition Smashwords Edition, License Notes Thank you for downloading this free ebook. Although this is a free book, it remains the copyrighted property of the author, and may not be reproduced, copied and distributed for commercial or non- commercial purposes. If you enjoyed this book, please encourage your friends to download their own copy at Smashwords.com, where they can also discover other works by this author. Thank you for your support. Discover other titles by Ernie Zibert at Smashwords.com. Table of Contents What are the forces driving the shift to AMS? Which IT Sourcing CREAMS are best for me? About the author Other titles by Ernie Zibert Connect with Me Online The real-world development of cloud enabled services (IaaS, PaaS, SaaS) will result in a tectonic shift in the IT sourcing landscape. All companies must re-assess their IT sourcing strategies to better align with cloud services. As a result of this re-assessment, the IT sourcing landscape will change markedly with many of the larger companies altering their sourcing mix. These larger companies will apply CREAMS to their sourcing portfolios. The acronym, CREAMS, stands for Cloud Realised and Enabled Augmented Managed Services. What are the forces driving the shift to AMS? The main force driving this shift is the monistic focus on financial performance. In 2012, companies will be exposed to significant top-line revenue growth pressure. As a direct result, they will look internally in an attempt to significantly reduce costs to protect margins. One major area of cost for all companies is IT. This is a dance danced in the past two decades. Good companies will react sensibly to this cost reduction pressure, whilst poor performing companies will tend to bring out the same dance moves applied to classic hits like; “Take 30% of cost out!” and, “Cut your team by half!” This time around, however, the dance will have one significant difference. That difference is that the elements of the IT sourcing pricing model have changed materially. Now, companies have the option to apply CREAMS. This option did not exist 12 months ago. Companies have the choice to materially alter the mix of their sourcing strategy and attain improved customer service and satisfaction at significantly lower cost. (The holy grail of IT sourcing.) This is not simply a matter of doing the same things as last time. CREAMS require companies to deploy new hybrid sourcing models for their IT Services. I provide a detailed example and business case in my booklet, ‘AMS TM - The next stage in the evolution of IT outsourcing’. Rather than simply repeating previous behaviour in a climate of cost pressure, that is, outsource more and get the service providers to dance to a reduced revenue stream, successful companies will deploy a different sourcing strategy - Augmented Managed Services TM (AMS TM ). Which IT Sourcing CREAMS are best for me? Like all creams, the answer will depend upon your company’s industry and size. Smaller companies will have the opportunity to apply some CREAMS, but the larger companies must apply CREAMS to maintain their competitive advantage. Put a smile on your face as well as your customers’ with the right cream. As always make sure you read the directions and understand the challenges that the CREAMS present. I detail these challenges in my booklet. Is your company ready for the new IT sourcing CREAMS? If so, download my booklet from Smashwords. About the author: Ernie Zibert is an influential IT Management Executive with 20+ years of international achievement in leveraging technology and strategic partnerships to drive growth, performance, flexibility, and customer satisfaction. A proven change agent, capable of orchestrating transformative business strategy. Champions innovation with a focus on developing flexible, scalable solutions for customer and organisational problems. Diverse experience across government, communications and media, and finance industries. World class financial, relationship and commercial management of IT sourcing relationships. Respected leader in highly-matrixed global corporate environments and in the Australian IT Services community. Other titles by Ernie Zibert: Discover other titles by Ernie Zibert at Smashwords.com. The Science of Sourcing Governance What’s the difference between a million and a billion dollar IT sourcing deal? Ordering IT Services: Would you like CHIPS with that? Sourcing's Three Fates The IT Outsourcing RFP COW is too FAT Outsourcing’s Two Evils AMS - The next stage in the evolution of IT Outsourcing Connect with Me Online: My blog: http://strategicsourcingblog.blogspot.com For more information, contact Ernie Zibert at ernie.zibert@gmail.com Thanks go to Mohandass Ayyappath for his insightful comments and editing. . opportunity to apply some CREAMS, but the larger companies must apply CREAMS to maintain their competitive advantage. Put a smile on your face as well as your. Apply CREAMS to your IT sourcing pain By Ernie Zibert Copyright 2012 Ernie Zibert Smashwords Edition Smashwords Edition, License Notes Thank