The IT infrastructure landscape is undergoing a significant transformation. While traditional on-premise solutions remain a critical component for many organizations, the rise of Cloud Computing, Artificial Intelligence (AI), and sustainability concerns are driving a shift towards more agile and adaptable infrastructure models.

A recent report by Gartner®, which is a leading research and advisory firm, sheds light on these key trends, and their impact on the infrastructure implementation and managed services market.

In this blog, we discuss these findings by Gartner®, and how they highlight the crucial areas of growth and innovation for businesses.

Key Market Findings by Gartner®

Gartner® report paints the picture of a maturing yet adaptable infrastructure implementation and managed services market. While the overall IT services market saw a faster growth rate, the infrastructure sector reached a solid USD $341 Billion in 2023, reflecting a steady 1.3% year on year (YoY) increase.

This stability, however, is accompanied by a surging demand for Cloud-centric services. Businesses are increasingly showing interest in solutions to optimize their Cloud deployments, integrate cutting-edge Generative AI (GenAI) capabilities, and execute secure Cloud migrations – all with the ultimate goal of driving organization wide digital transformation.

Cloud Optimization – Balancing Costs and Innovation

As organizations continue their journey to the Cloud, the need for application-driven transformations is more critical than ever. However, rising inflation and a slowdown in new Cloud initiatives are prompting a re-evaluation of spending, making Cloud optimization the “new mantra.” This approach enables organizations to achieve cost efficiency, without sacrificing innovation.

Gartner® suggests that service providers must offer a comprehensive suite of services, including transformation services, Cloud-native application development, and fully managed IT services. Additionally, deep industry expertise is also crucial, allowing providers to tailor solutions for specific industry and market needs.

Gartner® further stated that customer expectations are undergoing a transformation as well. Businesses are no longer satisfied with basic infrastructure improvements. They now demand a trifecta of benefits – optimization, security, and innovation. This translates into helping clients achieve transformative business outcomes, that are not only application-centric, but also drive tangible value for the organization.

Generative AI – Selecting the Right Tools for Business Transformation

Generative AI (GenAI) is no longer a futuristic concept – it is here and making waves across industries and multiple use cases. Businesses are embracing a wide range of GenAI applications, which creates a challenge for service providers. According to Gartner®, providers must carefully pick the best GenAI solutions, that align with their client’s goals and key performance indicators (KPIs).

Additionally, choosing the right applications is critical, as businesses need to effectively balance revenue and operational goals, while adhering to stringent security governance and standards. Any hiccup or flaw in these GenAI systems could significantly impact a client’s IT environment, and KPIs.

These KPIs, being industry-specific, serve as benchmarks for new GenAI-enabled applications and offerings. The stakes are high, and the margin for error is minimal, making robust and reliable AI solutions essential in this competitive environment.

Cloud Sustainability – Building a “Greener” IT Future

Sustainability has become an undeniable force in the digital transformation landscape. Organizations are increasingly aware of the environmental impact of a robust IT infrastructure, and are prioritizing sustainable technology sourcing practices.

Gartner® predicts a significant shift in priorities for tech leaders. By 2026, nearly 70% of technology sourcing, procurement, and vendor management professionals will have environmental sustainability woven into their performance goals.

This trend aligns with the findings of Gartner’s 2022 IT Services Buyers Survey, where a remarkable 56% of respondents could already see Cloud Computing as the key driver for sustainability and flexibility in IT sourcing.

Further solidifying this shift, the survey revealed that a substantial 62% of respondents were willing to pay a premium of 11-20% on their current IT services spending, to achieve their sustainability goals. With these statistics, one thing is clear – the green revolution in IT is not a brief phase, but a strategic imperative that is here to stay.

Navigate the Evolving Tech Landscape with ATSG Solutions

In this dynamic market environment, organizations need a reliable technology partner that can help them navigate the ever-evolving landscape of infrastructure services. ATSG is well-positioned to address these challenges, with a highly diversified portfolio of managed IT services and intelligent technology solutions, that align with the key trends identified by Gartner®.

Holistic IT Infrastructure Management with ATSG Remote Depot Services

ATSG’s Remote Depot Services offer a comprehensive solution for IT infrastructure implementation, encompassing periodic maintenance, repair, replacement, hardware refresh, and eco-friendly disposal.

This service aligns with the growing demand for efficient and sustainable IT infrastructure management. By ensuring optimal hardware lifecycle management, these services minimize unnecessary hardware replacements, and promote environmental as well as social responsibility.

ATSG’s Managed Technology Solutions and IT Services

Our comprehensive Managed Solutions portfolio encompasses Managed Cloud, Managed Operations, Managed Network, and Managed Security. This integrated suite offers a holistic approach to IT infrastructure management, addressing the critical aspects highlighted by Gartner® research:

Managed Cloud

• Optimizes Cloud deployments for cost, performance, and sustainability, aligning with the growing demand for efficient cloud utilization.

Managed Operations

• Streamlines routine IT tasks, frees internal resources for strategic initiatives like digital transformation, and promotes efficient resource allocation.

Managed Network

• Ensures optimal network visibility, performance monitoring and security, enabling businesses to leverage the full potential of Cloud-based solutions.

Managed Security

• Delivers comprehensive protection against evolving cyber threats, a crucial aspect in today’s increasingly complex threat landscape.

Conclusion

The infrastructure implementation and managed IT services market certainly is undergoing a significant transformation. By understanding key trends highlighted in the Gartner® report, organizations can make informed decisions about their strategy and IT infrastructures.

ATSG, with its comprehensive suite of technology solutions and proven expertise, can be your trusted partner in navigating this evolving landscape, and achieving your IT objectives in a brief timespan.

Contact ATSG to discuss your specific needs, and learn more about how our solutions can help you thrive in the new era of infrastructure services.

Disclaimer:

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.