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Gartner says IT leaders must prepare for the industrialization of IT

Many organizations are failing to exploit falling prices in products and services that should accompany the commodi...


April 8, 2008  


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Many organizations are failing to exploit falling prices in products and services that should accompany the commoditization of IT, according to Gartner Inc.

In 2007, 25% of IT spending was on unnecessary and redundant customization and although this will decline, it will remain at least at 10% overspending through 2010.

The need to move ever faster and at a lower cost is driving a shift from ‘integration’ activities toward greater interoperability and interchangeability with the direct result that many IT product and services markets are becoming commoditized.

Gartner likened this ‘industrialization of IT’ to the two earlier industrial revolutions (of mechanization and electrification) calling it the third industrial revolution: that of digital business in the cloud.

Gartner analysts discussed the industrialization of IT at Gartner Emerging Trends Symposium/ITxpo 2008, taking place here through April 10.

“No IT product or service is fully commoditized today as there is still some cost to you in switching suppliers, but many are commoditizing and some are at a relatively advanced state such as desktop PCs,” said Brian Gammage, a Gartner vice president.

“As products and services do commoditize, prices should usually fall, but conversely, for most enterprises, one of the biggest impacts of commoditization is overspending.”