CIOs will need market trader skills, says IDC

IT managers will need to acquire the skills of market traders to handle emerging trends in business IT, according to analyst firm...

IT managers will need to acquire the skills of market traders to handle emerging trends in business IT, according to analyst firm IDC.

Speaking ahead of his keynote speech at IDC’s Dynamic IT Conference last week, Martin Hingley, vice-president, IDC European systems group, described a world of flexible utility computing where IT managers make complex deals with suppliers based on how much they use systems.

"IT managers are definitely going to need more skills on the procurement side," Hingley said. "There will be a lot of negotiations with suppliers over usage-based pricing, and IT managers will become more like traders."

Suppliers have become more flexible towards users since the slowdown in the IT sector, but the variety of licensing models on offer could obstruct the development of a standard pricing model for usage-based computing, IDC warned.

Hingley said suppliers would need to change their licensing models to facilitate utility computing, but most were resisting change. Oracle’s per-processor licensing, for example, could be difficult to manage for those attracted to utility computing on multi-core processors.

He said hardware companies such as Sun have been better at proposing flexible usage-based charging for IT. This has partly been driven by the economic downturn, which led suppliers to consider new options in order to sell products, he said.

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