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PERSPECTIVE

Beyond Uptime: Fueling innovation with infrastructure management

The role of infrastructure managed services (IMS) in facilitating business reinvention.

5-MINUTE READ

July 24, 2024

In brief

  • Traditional approaches to managing IT infrastructure are falling short as hybrid cloud, AI and edge computing introduce new demands.

  • Most companies value IT modernization, but to drive success, CIOs must align infrastructure managed services (IMS) with their modernization journey.

  • Three steps CIOs can take to modernize IMS: 1) Assess where you are; 2) Build partnerships, don't just outsource; 3) Enable enterprise-wide transformation.

Why is modern infrastructure crucial for business success?

According to Accenture’s annual survey, the rate of change impacting businesses has increased by 183% since 2019—with technology as the leading cause. As technology continues to evolve, a modern, cloud-based infrastructure will be crucial for business success. It’s a foundational component of a digital core, which is necessary for companies to thrive through constant change.

For a modern enterprise, infrastructure is more than a back-end service—it is a key differentiator and strategic asset. However, our recent research shows that many companies still struggle with infrastructure-related woes:

34%

of C-Suite executives consider legacy infrastructure one of the top three barriers to fully realizing value from the cloud

36%

are hindered by a lack of necessary cloud skills

1/3

of executives also stated that IT and business are misaligned

41%

41% find defining and implementing a new operating model too complex.

And unfortunately, traditional IMS models are struggling to keep pace with today’s evolved IT landscape that expands across on-premises systems and data centers to include hybrid and multi-cloud, edge computing, digital workplace and network.

Generative AI

Traditional cloud management may not enable the real-time adjustments necessary for optimal AI performance, data governance and cost management.

Hybrid Cloud

Hybrid cloud is adding to the complexity of managing an IT landscape that spans on-premises, workplace, network, edge and containerized apps.

The Edge

The increased adoption of edge and generative AI is putting networks under unprecedented strain.

Decentralization

Decentralization is being driven by the shift to hybrid cloud, the rise of AI and blockchain, remote/hybrid work and geographical spread.

Why is a modern infrastructure managed services partner essential?

Organizations can’t do it all alone. You need a partner to help manage your IT infrastructure—from on-premises and cloud to edge and the network. The right partner can accelerate transformation, deliver more business value at a lower cost and fast-track your journey to reinvention.

What are the characteristics of modern IMS?

Full-stack observability to help measure business Key Performance Indicators (KPIs) and Experience Level Agreements (XLAs) and full-stack FinOps to manage IT services spend and prioritize investments.

A unified command, control and decision support center that provides visibility into critical aspects of the entire business.

SRE principles improve service delivery through engineering practices, proactive problem-solving, automation and data-driven decision-making.

3 steps to maximizing infrastructure managed services

There are three strategic steps that CIOs can take to maximize the potential of modern IMS.

1. Assess where you are

Organizations at various stages of their modernization journeys encounter distinct challenges and aim for different outcomes from IMS. The first step is to assess goals and gaps.

The key parameters to assess IT modernization are:

  • Automation maturity: Should be platform-based and implemented across entire processes, not just for repetitive tasks.

  • Hybrid cloud maturity: Across security, resilience, operational processes and tools and cost management.

  • Modern tech stack: Including cloud, microservices architecture, edge computing, 5G/ORAN, software-defined infrastructure and APIs.

  • User experience: Measurable satisfaction with a service using clear XLAs.

  • Agility: Ability to rapidly pilot and deploy new technologies in line with organizational compliance and security requirements.

  • Tech adoption: Adoption of new technologies like generative AI and edge computing.

2. Build partnerships instead of just outsourcing

With the right partner—one that has transformation in its DNA and brings the right expertise in hybrid infrastructure—IMS can offer the skills, practices and tools needed to harness constantly changing technology and unlock business value.

In fact, according to Accenture's recent cloud research, 82% of all companies that achieve their expected cloud outcomes use managed services to a moderate or great degree.

The key criteria for selecting an IMS provider include:

  • Alignment with business priorities: Your partner should work with you to identify both present and future needs, grasp your goals and align with your company's vision.

  • Industry expertise: Needs differ by industry and your partner should deeply understand your unique challenges and opportunities.

  • Commitment to continuous innovation: Your partner should always keep you up-to-date with new technologies skills to prevent legacy methods from hindering progress.

A strategic IMS partner understands the distinct nuances of each organization to drive transformation across both IT and the operating model.

3. Enable enterprise-wide transformation

Today's dynamic business landscape calls for a more holistic approach to infrastructure management with IT infrastructure envisioned as a living, adaptable ecosystem. This ecosystem incorporates various components—such as core infrastructure, including hybrid cloud, network and edge, intelligent automation engine and data—that interact seamlessly to achieve optimal performance, security and agility. Strategically deployed, modern IMS can accelerate enterprise-wide transformation using this ecosystem lens, enhancing business value at less cost and setting the stage for reinvention.

Based on our experience helping drive enterprise-wide transformation irrespective of an organization’s IT modernization and operating model maturity, we suggest a three-pronged approach:

  • Operationalize: Build the foundation for a multi-speed operating model that supports a hybrid landscape by introducing automation to improve quality and reduce technical debt and costs.

  • Accelerate: Unlock value by running a “cloud-like” infrastructure and introducing gen AI-based automation. Continually re-engineer infrastructure to align with strategic business goals.

  • Modernize: Embark on an advanced journey of transformation and modernization of IT operations across the entire technology stack by scaling gen AI-based automation, adopting SASE, private 5G and edge.
Enable enterprise-wide transformation with a three pronged-approach: Operationalize, Accelerate and Modernize.
Enable enterprise-wide transformation with a three pronged-approach: Operationalize, Accelerate and Modernize.

A three-pronged approach to enterprise-wide transformation

The good news? It doesn’t have to happen all at once. Each step toward transformation unlocks more of the innovative power of infrastructure.

Take the fast track to future value

As companies embark on their reinvention journey’s, yesterday’s IT infrastructure is proving to be a rusty wagon. Modern infrastructure managed services are the high-powered engine to accelerate the transformation journey.

However, keeping that high-performance engine running smoothly demands more than just a pit stop. It necessitates a strong strategic partnership, not just outsourcing.

The choice is yours: Stagnant cruise control or fast-tracked and continuous reinvention. Which lane will you choose?

WRITTEN BY

Rajive Wickramasinghe

Senior Managing Director – Global Lead Infrastructure Engineering Accenture

Nalin Pandey

Managing Director – Accenture Cloud First

Ashley Green

Managing Director – Accenture Cloud First

Shalabh Kumar Singh

Principal Director, Accenture Research