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The Disruptive Demands of Digitalization in Today's Service Economy

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The Disruptive Demands of Digitalization in Today's Service Economy

May 12, 2016
By Laura Stotler
TMCnet Contributing Editor

Digitalization and the cloud are poised to disrupt the entire technology sector, and some giant players are being pushed to change the way they do business and deliver and receive services. Legacy networks and solutions simply can’t keep pace with the furious amount of data and services in play today and as a result, digitalization is becoming a necessity.

According to a recent Seeking Alpha article, the digital revolution will have far reaching consequences, impacting companies like Oracle (News - Alert), IBM, CA, Amazon and Microsoft. But every enterprise IT company is set to face the challenges and rewards of digitalization, and those without a game plan in place are going to need to scramble and play catch-up if they want to remain viable and competitive.

Airbnb and Uber are prime examples of companies taking advantage of digitalization and profiting massively off of the cloud and today’s service-based economy. Airbnb, for instance, has built up more capacity than the top three largest hotel chains in less than a decade. Gartner (News - Alert) refers to this phenomenon as “uberfication,” with second and third tier applications becoming a critical and valuable part of the technology landscape.

"Due to the significant surge in interest and early implementation of digital business services, operational demand for a reduction in unplanned IT downtime across the board has become increasingly important," writes Gartner. Consumers and businesses alike are demanding 24x7 service availability, and cloud automation and orchestration can deliver the goods. Organizations of all sizes would do well to ramp up their cloud migration strategies to better meet the demands of this rigorous service economy.

The Seeking Alpha piece also points to software as the panacea for the demands of digitalization, offering the levels of security, automation, flexibility and resilience necessary to remain competitive. As cloud infrastructure becomes the norm, software is gaining a prominent role in network management and orchestration from the enterprise to the data center and beyond.

The disruption caused by digitalization is poised to have far-reaching consequences throughout the technology world, and none of the traditional players will be immune. While most are already ramping up their cloud and software defined networking (SDN) and virtualization strategies, the race is on and everyone from technology stalwarts to startups will have a fair chance to embrace digitalization.

Edited by Rory J. Thompson

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