Tag: AECOM

Aecom boss says that cloud is overhyped

originalA top Fortune 500 CIO says he is lukewarm about the cloud claiming that it is overhyped.

Tom Peck, chief information officer of Los Angeles-based Aecom said that Partners clinging to upfront payment models and a lack of understanding of the difference between true cloud and “as-a-service” has left him thinking the cloud is just a facade to appease Wall Street.

Speaking during the XChange Solution Provider 2016 keynote Peck said that his biggest beef with the cloud is that he sees too many product companies attempting to sell cloud like it’s on-premise hardware and demanding upfront payments.

Aecom would prefer to see cloud delivered as a subscription service with a true pay-as-you-go option, but Peck said such a model has remained elusive.

“This doesn’t make us happy, because all I’m doing is paying you a markup for something branded ‘cloud,’ when, in reality, it’s on-premise. It’s just in somebody else’s premise,” Peck said.

Part of the challenge is on the buyer side, with many end users failing to understand the difference between true cloud and Infrastructure-as-a-Service, Platform-as-a-Service or Software-as-a-Service offerings, he said.

While Aecom sees a benefit in being able to spin up compute cycles on demand and having someone else manage its infrastructure, Peck said the elasticity of cloud is often overstated.

“The cloud is only as elastic as you’re willing to pay, because you still need to predict hardware and compute cycles and all that stuff,” Peck said.

Public sector outsourcing drops

kcalmAccording to research outfit Information Services Group (ISG), the public sector outsourcing market in the UK has taken a massive hit in the first half of the year. The ISG Outsourcing Index for EMEA found just €2 billion of outsourcing activity in the UK for the first half of the year. Last year the market was worth €4.6 billion.

However, Britain still leads the way when it comes to public sector outsourcing in Europe. The whole EMEA market for the first six months of was just €2.3 billion compared to €3.1 billion last year. In other words, the UK accounted for five sixths of all public sector outsourcing in EMEA this year.

The ISG figures track all outsourcing contracts with an annual value of €4 million or more. They include IT contracts, business process outsourcing, back office processes, but IT dominates with more than two thirds of all contracts. Public sector outsourcing now accounts for 41 percent of all outsourcing activity in EMEA, with Britain in a clear lead.

The top 15 companies winning these lucrative contracts are Accenture, AECOM, Arqiva, Arvato, BT, Capgemini, Capita, CSC, Grupo Ferrovial, HP, Interserve, QinetiQ, Serco, Thales and Tieto.