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Join Everest Group experts Rohan Pant, Vice President, Ricky Sundrani, Partner, and Richa Tapadia, Practice Director, for an insightful webinar on the evolving landscape of Cloud and Infrastructure Services (CIS) pricing and deal trends for 2025.

As 2024 experienced flat market growth and pricing stability, the next 6-12 months are set to bring significant shifts with far-reaching implications for CIS deals. From anticipated reductions in standard/commodity CIS rates to projected decreases in ACV/TCV for managed services, it is crucial for enterprises and providers to adapt their strategies to remain competitive in an evolving market.

This session will provide a deep dive into key pricing trends shaping the future of CIS deals, evolving solutions and their impact on pricing strategies, and practical guidance for factoring market changes into your bids.

What questions will the webinar answer for the participants?

• Is being the lowest-cost bidder the silver bullet to winning CIS deals for service providers?  
• How is gen AI impacting CIS deals?  
• What are the most common contracting and pricing models observed for CIS deals?

Who should attend? 

• Cloud, Infrastructure & Security (CIS)-focused solution leaders 
• Pre-sales leads 
• BU heads for CIS 
• Sales leaders for CIS 
• Price to Win and Finance leaders 

After a period of rapid growth fueled by pandemic-driven hybrid work investments, the digital workplace services market has experienced a slowdown, primarily due to global macroeconomic challenges.  

Despite this, notable developments are now reshaping the competitive landscape. Original Equipment Manufacturers (OEMs) like Lenovo, Dell, and HP are venturing into the services space, while Value-Added Resellers (VARs) such as Zones and Computacenter are broadening their digital workplace service portfolios.  

Furthermore, a growing number of players from ancillary sectors, including staffing and telecommunications, are making inroads into the digital workplace managed services market, but the question is how and why?  

Reach out to discuss this topic in depth.

The entry of OEMs into the services market is particularly intriguing. With the hardware market growth and margins stagnating, entry into managed services offers these players a promising avenue for growth and an opportunity to strengthen their balance sheets. This move also positions them as strong competitors to traditional service providers like HCL, TCS, and Accenture. A key benefit for enterprises in engaging with OEMs is also their ability to leverage their hardware supply chain strength, along with software and services, in order to offer an end-to-end and integrated managed services offering. 

How does the disruption in the digital workplace vendor ecosystem impact enterprises? 

Many enterprises are now looking to streamline their vendor contracts and prefer having a single provider accountable for both hardware and services.  

While the concept of Device-as-a-Service (DaaS) has been around for some time, it often results in inflated costs, as either the service provider partners with an OEM, or vice-versa. With OEMs now directly entering the services space, we may see a more competitive market with smoother service delivery.  

Since most of the OEMs already have a foot in the door in these enterprises as part of their hardware contracts, cross-selling and up-selling of managed workplace services has garnered decent success in enterprise deals for these OEMs.  

The key question now though, is whether these OEMs will be able to deliver high-quality services, particularly as enterprises place greater emphasis on user experience. OEMs will need to enhance their capabilities to offer a compelling value proposition. 

For traditional service providers, the growing presence of OEMs in the market could now lead to increased competition, potentially resulting in price wars. While service providers have a clear edge in service expertise, OEMs hold the advantage in hardware and asset management.  

In conclusion it will be interesting to observe whether OEMs can successfully build their services capabilities and shift the digital workplace market dynamics away from traditional service providers toward OEMs, Telcos or VARs in the coming years. What the next 12 months holds is something that may transform industries forever! 

If you found this blog interesting, check out our blog focusing on Unpacking The Potential Of A Hybrid Copilot Strategy: A Roadmap For Success | Blog – Everest Group, which delves deeper into another topic covered by our authors. 

To discuss this and other insights from our research on OEMs, please reach out to Rohan Pant (rohan.pant@everestgrp.com) and Udit Singh (udit.singh@everestgrp.com). 

In this Pricing Bulletin segment, Everest Group’s Ricky Sundrani, Partner, and Rohan Pant, Practice Director, discuss cloud infrastructure pricing across different sized firms in the current marketplace, with mid-tier service providers currently growing at a much faster pace, in comparison to their tier one counterparts. They examine how IT services pricing and cloud services cost is affecting the market space. Furthermore, the two experts delve deep into the recent success of mid-tier firms, with their flexible approach and tailored solutions allowing them to win both small, medium and even multi-million-pound deals. For more information about pricing research and pricing metrics at Everest Group, visit Pricing Research And Pricing Metrics: https://www.everestgrp.com/pricing-research/ or to contact Ricky Sundrani, email ricky.sundrani@everestgrp.com

WATCH THE WEBINAR ON-DEMAND

The slowdown in demand in 2023 had a significant impact on services pricing trends. Simultaneously, changing pricing models, coupled with the rise of generative AI and the financial constraints faced by enterprises due to escalating SaaS costs, compelled service providers to tighten solutioning and pricing – leaving everyone wondering what the outlook of services pricing will be.

Watch this panel discussion to hear Everest Group’s pricing experts discuss the most compelling pricing trends observed this year and hear the outlook for IT and BPO services pricing in 2024.

What questions has the webinar answered for the participants?

• How has outsourcing services demand evolved in 2023?
• What are the top learnings and open questions around pricing model changes, generative AI, SaaS pricing, and their impact on solutioning and pricing of IT and BPO services?
• What is the outlook for pricing?

Who should attend?

• CIOs, CTOs, CDOs
• Pricing and solutioning leaders
• IT heads and executives
• BPO department leaders
• IT and BPO outsourcing contract managers

Learn more about Everest Group’s pricing membership.

Check out our webinar, The Six Key Pricing Themes Dominating 2023, to learn more about the most current pricing trends.