Which “Hotel California” will be the next shut down?

“You can check out any time you like, but you can never leave” – that’s true not only for the well-known hotel in The Eagles’ song, but also in many lines of business when talking about paradigm shifts and pervasive changes we’ve faced over the past several years. Nowadays, cars are more and more being leased, borrowed and shared, newspapers and TV are consumed online, servers and memory are accessed only when required.

The megatrend present here? Temporary use instead of possession and flexibility instead of contract obligations!

This shift toward cloud-enabled technologies has resulted in the decline of several businesses, while creating opportunities for many more that can harness the shift in consumption models. The music recording industry, as well as brick-and-mortar movie rental stores like Blockbuster, took a serious hit by not transitioning their business models to support cloud-based streaming quickly enough. Cloud has simplified and universalized access to many services, while fundamentally altering the way that enterprises think about their IT infrastructure.

Hardware is becoming a consumer item, carriers are becoming mere transport companies, and software companies lose their legacy royalty business. IT is another item required to be deployable flexibly at any given moment, anywhere – a paradigm change encapsulated in “cloud computing.” The cloud alters economical interrelations, dependencies become indistinct and open ecosystems are becoming more and more relevant. These trends are reinforced by mobile terminal equipment like Google Glass and broadband connections. Companies today don’t want rigid license and service contracts, but tailor-made, turn-key and simple complete solutions that are ready for integration, compatible with existing systems and individually adaptable. Consumerization, mobility and cloud computing are changing business models and consumer behaviour of Dimension Data’s clients profoundly.

Which other lines of business will follow next? How will cloud computing enable them to adapt their business models to the pervasive changes we can observe today and act more flexibly? Tomorrow’s megatrends require an IT service provider with tailor-made and turn-key complete solutions. Let’s shut down your Hotel California together — for your clients and for your business.

Author: Andre Kiehne

Director Solution Sales, Microsoft Germany GmbH

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