As CIOs increasingly work with remote infrastructure management tools for configuration, testing and distri¬bution of software, more and more engineers are being empowered to remotely manage data centers, storage, networks, desktop support, help desk and security (i.e., security and control: certified ISO 27000). As CIOs become comfortable with remote management of in¬frastructure planning, administration, monitoring and problem-solving, a new model—remote infrastructure management outsourcing, or RIMO—is emerging to help buyers gain many of the hoped-for benefits of asset ownership transfer without the sometimes nightmarish costs and risks associated with that older model.
RIMO, also known as the ‘asset light’ model, is an increasingly popular form of selective outsourcing in which a solution provider assumes responsibility for managing specific (or all) IT/network functions. Unlike traditional outsourcing arrangements, however, RIMO does not entail the transfer of an enterprise’s assets or personnel to the solution provider or data center. Instead, the organization contracts for a solution pro¬vider to continuously monitor its systems identify po¬tential problems and remediate and resolve real events from a remote location.
The foremost practitioners of RIMO today are managed service providers, or MSPs, who manage IT services for other companies via the Internet. The MSP business model evolved as the traditional computer value-added reseller (VAR) model continually provided lower profit margins. This changing reality, combined with competi¬tion from direct PC vendors such as Dell and Alienware (the latter now owned by Dell) and unpredictable rev¬enues from reactive, break-fix technical support, led to the new model.
In an RIMO scenario, an MSP commonly provides re¬mote network, desktop and security monitoring, patch management, remote data backup and other technical services, monitoring a client’s IT infrastructure and re¬solving any issues that arise within it. Most MSPs charge either a per-month fee, on a time-and-materials basis, or per deployed device (e.g., per server or network device). RIMO is particularly important for the small-to-me¬dium-sized business (SMB) market, giving businesses a relatively cost-effective way to manage their IT without having to hire on-site staff.

RIMS Benefits and Market Growth

According to Everest Research, the RIMO market grew from $720 million in 2005 to $1.5 billion in 2006, and Everest expects the RIMO market to exceed $8 billion somewhere around 2011. RIMO is on the rise because it tends to result in both predictable recurring revenues for the provider and peace of mind for the client, foster¬ing labor arbitrage and delivering greater flexibility and improved process efficiency.
RIMO is inherently more flexible than previous out¬sourcing alternatives. Assets rarely move from home data centers, and the RIMO model is flexible enough that buyers can move assets to nearshore centers in re¬sponse to M&A activity, business growth, increased IT volume or changing technology roadmaps.
RIMO shifts control away from the owners of desktops, servers, mainframes and data centers, and toward the buyers themselves. That helps spur competition that is based on price, capability and cultural fit rather than proprietary vendor requirements.

RIMS Models

‘Asset light’ does not mean ‘asset-free.’ Instead, it means buyers will have more power to retain ownership of their assets so they can not only relieve themselves of vendor control but also break out functions according to core competencies and overall value to the organiza¬tion, and outsource or ‘in-source’ pieces of the IT infra¬structure accordingly. To do this, CIOs will commonly break their overall IT infrastructure into independent ‘towers’ such as network management, server adminis¬tration, maintenance and desktop support. Towers give IT executives the flexibility to pick and choose functions they are willing to farm out to suppliers to get started with RIMO. For example, outsourcing server monitor¬ing within a data center, or quality assurance after code is written, can be a safe way to start. By beginning with one tower at a time, CIOs can familiarize themselves with RIMO providers across different regions with various technology installed bases, as well as varying IT expen¬ditures, resources, governance, and methods of process engineering.
Three RIMO multi-sourcing/’collaborative sourcing’ models are emerging:
Selective/discreet RIMO, where a set of functions and processes is set aside for remote management. That means, for example, that functions such as help desk or data center may be retained by the customer while their monitoring and management is outsourced. This is the best way for most IT executives to get started with RIMO regardless of company size because it involves the least risk: if the first RIMO arrangement does not work, it does not jeopardize the company’s entire IT infrastructure. It also embodies the real promise of RIMO in that the company can outsource pieces of the IT infrastructure to different providers based on their relative capabilities and offers. Full-service RIMO, where a company outsources services but retains the assets and the physical data center. Decisions around full-service outsourcing depend on business case and strategic drivers such as asset refresh and data center consolidation. This scenario is ideal for those companies with the largest embedded base of both IT investment and in-house experience with regard to the equipment itself, but little capability and expertise in application management. This is a good model for nearly all Tier 1 organizations.
Vendor-managed inventory (a.k.a. business-ready infrastructure or BRI), where assets are largely owned by the RIMO provider. BRI combines certified, on-demand application infrastructures and offshore-based services to create a predictable, pay-per-use, multi-year service model and a platform for SaaS that is ideal for the SMB market.</div>