One of the themes we delve into in our free online framing a Cloud Computing strategy event is the emerging role of the Service Integrator. This is something I’ve been talking about for a while in discussions with clients but I thought I’d share it a bit more widely…
So what is a Service Integrator? Simply put, a Service Integrator relates to the SaaS/Cloud Computing world in the same way that a Systems Integrator relates to the on-premise computing world.
Right now we’re at a stage in Cloud computing development which is dominated by “early adopters”. Typically such companies are willing to go an extra mile to get the benefits of a new technology and technology model – things that many other companies would consider too complicated, risky or expensive.
Activities which fit into this category include integrating data and functionality (both between Cloud-based platforms and applications, and between Cloud-based and on-premise systems); encrypting sensitive data and securing communications; backing up and restoring data; replicating and managing resources to maximise reliability and availability; and so on and so on.
While today’s adopters of Cloud Computing may be quite happy to shoulder the technical burden of making remote resources “fit for purpose” within their enterprise, we should assume that most won’t. Particularly when you consider that a big part of the promise of Cloud Computing is that with this model, you’re delegating responsibility for managing technology. Why, if you’re so interested in a model of computing which is fundamentally tied to outsourcing – and particularly if you’re interested about using this model not just for one application but for a wide variety of purposes – would you choose to take responsibility for integration yourself?
If use of Cloud Computing is to move beyond tactical use in the early adopter community, there’s going to be a big opportunity out there for providers who can wrap multiple Cloud-based services and platforms up and deliver them as bundles of managed services.
So… duh… isn’t this the same thing as systems integration then? Well, maybe a little – but not completely. There are three distinct levels that a Service Integrator can work and add value at, which further blur the boundaries between “traditional” systems integration work and outsourcing/managed services provision work:
- Technical integration. This is primarily “traditional” systems integration project work – delivering code to create and stitch custom and off-the-shelf application services together.
- Management integration. This is managed services work that is focused on delivering seamless experiences to service consumers, to agreed levels of quality. Reliability, security, availability, break/fix, helpdesk services and disaster recovery all play here.
- Contract integration. This level of integration work is about providing “one throat to choke”. The Service Integrator takes responsibility for all back-end contracts with resource and application service providers, and becomes the single integrated billing and payment point for the end customer, also creating a single point of liability for quality of service delivered.
Now of course many established Systems Integrators already combine work of different kinds (for example development/integration and application management) to create overall offerings for clients – but here, we see increased industrialisation of some the services provided (particularly as infrastructure providers like Informatica, Pervasive, and Cast Iron get in on the SaaS act at the technical integration layer), and also more focus on the economic benefits of the Cloud Computing model (rather than on “all-in” pricing for multi-year contracts). We’re already seeing a number of service providers stepping into this space, as well as new players springing up. Examples include (though there are many more):
Capgemini – which has created a specialised Cloud Computing centre of excellence and is providing advisory and integration services for its clients.
Accenture – which has created a set of services to help clients examine potential around Cloud Computing and SaaS.
CSC – which has launched two specific new offerings: Cloud Orchestration (principally operating in our technical integration layer) and Trusted Cloud (operating in our management integration layer).
Saaspoint – a specialist Cloud Computing/SaaS consultancy centred on delivering services based around Salesforce.com application service implementation, citing over 700 clients.
Bluewolf – which focuses on integrate a variety of services (often centred around Salesforce.com’s applications) for customers interested in driving change in marketing, sales and services processes.
For me, one of the most interesting things here will be to what degree the flexible pricing and billing models that have become expected in the Cloud Computing space are offered on to customers when these intermediaries become better established in this market. Will service integrators find ways to make margin out of Cloud Computing providers’ pricing and billing arrangements (for example by pooling a set of back-end application service licenses across multiple clients, and “soaking up” some of the variable demand for capacity that way) but not passing these efficiencies onto clients, instead preferring to drive clients towards fixed-price multi-year contracts? Or will they start to adopt more granular pricing and billing practices? Indeed, will this become an area of differentiation between the established SIs and the upstarts?
I’d love to hear what you think… this is a topic we’ll be digging into more over the course of this year.
If you’d like to check out our Cloud Computing event, it’s available free and on-demand… just go here. You’ll need a free Guest Pass ID to access the content, but signing up only takes a few seconds and you also get access to an extensive library of written research.



