Apply CREAMS to your IT sourcing painBy Ernie Zibert ppt

Apply CREAMS to your IT sourcing pain
By Ernie Zibert
Copyright 2012 Ernie Zibert
Smashwords Edition
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Discover other titles by Ernie Zibert at Smashwords.com.
Table of Contents
What are the forces driving the shift to AMS?
Which IT Sourcing CREAMS are best for me?
About the author
Other titles by Ernie Zibert
Connect with Me Online
The real-world development of cloud enabled services (IaaS, PaaS, SaaS) will result in a
tectonic shift in the IT sourcing landscape. All companies must re-assess their IT sourcing strategies
to better align with cloud services. As a result of this re-assessment, the IT sourcing landscape will
change markedly with many of the larger companies altering their sourcing mix.
These larger companies will apply CREAMS to their sourcing portfolios. The acronym,
CREAMS, stands for Cloud Realised and Enabled Augmented Managed Services.
What are the forces driving the shift to AMS?
The main force driving this shift is the monistic focus on financial performance. In 2012,
companies will be exposed to significant top-line revenue growth pressure. As a direct result, they will
look internally in an attempt to significantly reduce costs to protect margins. One major area of cost for
all companies is IT. This is a dance danced in the past two decades.
Good companies will react sensibly to this cost reduction pressure, whilst poor performing
companies will tend to bring out the same dance moves applied to classic hits like; “Take 30% of cost
out!” and, “Cut your team by half!” This time around, however, the dance will have one significant

difference. That difference is that the elements of the IT sourcing pricing model have changed
materially. Now, companies have the option to apply CREAMS. This option did not exist 12 months
ago.
Companies have the choice to materially alter the mix of their sourcing strategy and attain
improved customer service and satisfaction at significantly lower cost. (The holy grail of IT sourcing.)
This is not simply a matter of doing the same things as last time. CREAMS require companies to
deploy new hybrid sourcing models for their IT Services. I provide a detailed example and business
case in my booklet, ‘AMS
TM
- The next stage in the evolution of IT outsourcing’. Rather than
simply repeating previous behaviour in a climate of cost pressure, that is, outsource more and get the
service providers to dance to a reduced revenue stream, successful companies will deploy a different
sourcing strategy - Augmented Managed Services
TM
(AMS
TM
).
Which IT Sourcing CREAMS are best for me?
Like all creams, the answer will depend upon your company’s industry and size. Smaller
companies will have the opportunity to apply some CREAMS, but the larger companies must apply
CREAMS to maintain their competitive advantage.
Put a smile on your face as well as your customers’ with the right cream. As always make sure
you read the directions and understand the challenges that the CREAMS present. I detail these
challenges in my booklet.
Is your company ready for the new IT sourcing CREAMS? If so, download my booklet from
Smashwords.
About the author:
Ernie Zibert is an influential IT Management Executive with 20+ years of international
achievement in leveraging technology and strategic partnerships to drive growth, performance,
flexibility, and customer satisfaction. A proven change agent, capable of orchestrating transformative

business strategy. Champions innovation with a focus on developing flexible, scalable solutions for
customer and organisational problems. Diverse experience across government, communications and
media, and finance industries. World class financial, relationship and commercial management of IT
sourcing relationships. Respected leader in highly-matrixed global corporate environments and in the
Australian IT Services community.
Other titles by Ernie Zibert:
Discover other titles by Ernie Zibert at Smashwords.com.
The Science of Sourcing Governance
What’s the difference between a million and a billion dollar IT sourcing deal?
Ordering IT Services: Would you like CHIPS with that?
Sourcing's Three Fates
The IT Outsourcing RFP COW is too FAT
Outsourcing’s Two Evils
AMS - The next stage in the evolution of IT Outsourcing
Connect with Me Online:
My blog:
For more information, contact Ernie Zibert at
Thanks go to Mohandass Ayyappath for his insightful comments and editing.