Gartner Research

Market Insight: App Providers Must Partner With Customers on Cost Optimization or Risk Weakening the Drive for Cloud and Digital

Published: 14 March 2016

ID: G00301330

Analyst(s): Adam Woodyer , Bianca Granetto , Daryl Plummer


Uncertainty with the 2016 global economy and financial markets will lead enterprises across industries to strategize for cash flow and operating profit improvements. Application providers must partner with their customers to execute on delivering successfully to these strategies.

Table Of Contents


  • Providers Must Partner With Their Customers and Help Them Transform Their Spending Behaviors to Compete in the Age of Digital Business
  • CEOs Will Need to Sustain Both Cash Flow and Operating Profits, While Investing in Digitalization
  • CIOs, CDOs and CFOs Need Help With the IT Valuation Paradox — Application Providers Must Aggressively Pursue a Change in Customer Spending Behaviors and Practices
  • Accelerate the Shift to Cloud for Added Scale and a Reprioritization of Responsibilities
    • Flat IT Budgets Pair Up With Increased IT Responsibilities
    • Service Scale
    • With Cloud SaaS, Cost Optimization Targets Responsibility
  • Application Providers Must Shift Their Strategies to Effectively Help Deliver on True Digital Transformation Initiatives — Bimodal Can Help as an Organizing Principle

Background and Context

  • Great Majority of Organizations Have Spending Behaviors That Have Remained Substantially Unchanged — Changing These Behaviors Is an Opportunity for Providers

The Impact

  • 2016 Prioritization Framework — Align Your Market Positioning Where You Can Make the Greatest Impact


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