Skip to main content

How Cloud Is Changing the Face of IT Service Management

Dennis Drogseth

Cloud is no longer a new topic for IT, or for IT service management (ITSM). But its impact on how ITSM teams work, as well as on how IT works overall, has probably never been greater.

Indeed, more and more IT organizations have been “moving to the cloud.” But understanding its relevance can’t be achieved by viewing cloud as a “destination,” as if it were some miraculous travel resort in the sky — in spite of the much overused phrase “journey to the cloud.”

Optimizing cloud isn’t a linear process of simply “getting there.” Rather, cloud is a multifaceted resource to be utilized, managed, and understood in conjunction with other IT resources as an enabler of cost, service, and business efficiencies.

Leveraging EMA research on the future of ITSM and on digital and IT transformation, this blog looks at data relevant to the impact of cloud on ITSM teams and addresses the following questions:

■ Where and how are cloud adoptions (both public and private) occurring?

■ How is cloud affecting IT priorities overall, and how is it affecting ITSM priorities in particular?

■ Where and how is cloud changing how ITSM teams work?

■ What are some of the more prominent obstacles to integrating cloud for service management? And how is cloud adoption impacting ITSM success?

■ What should you look for in the future?

Where and How Are Cloud Adoptions Occurring?

Our digital transformation research confirms what other EMA research data indicates: Private or internal cloud adoption is still well ahead of public cloud adoption overall, although a hybrid, 50/50 balance between public and private is very much on the rise. Yet among the more popular services, external SaaS applications are number one and externally hosted infrastructure-as-a-service (IaaS) offerings are at the number three spot. Top internal cloud priorities include software-defined data centers, internally hosted virtual applications, and internal IaaS options.

How Is Cloud Affecting IT and ITSM Priorities?

In terms of IT overall, our digital transformation research indicated that 85% of IT organizations are, in some way, linking their IT or digital transformation initiatives to cloud. The data also indicates that they view cloud primarily as a resource for transformation, but also as both a driver to promote more dialog between IT and the business and a catalyst for IT to become more holistic and cross-domain. However, some respondents felt that cloud was actually isolating IT from the business, and 15% felt that cloud was more disruptive than helpful in general.

When we asked specifically how cloud was impacting ITSM teams in our ITSM research, we saw that similarly, cloud was viewed first and foremost as a resource for expanding ITSM capabilities. But many ITSM teams also indicated that cloud:

1. Requires higher levels of automation

2. Makes us to pay more attention to DevOps

3. Makes asset management more challenging

4. Enables ITSM teams to reduce costs (could be OpEx or CapEx)

5. Puts pressure on ITSM to justify costs

6. Shortens review cycles for managing change

7. Promotes the representation of third-party SaaS services in our service catalogs

Where and How Is Cloud Changing How ITSM Teams Work?

The shifting priorities indicated above help to answer this very question. There’s a growing need for:

■ More advanced levels of automation

■ More creative and dynamic approaches to asset management and managing change

■ Expanding the reach of service catalogs to include SaaS and potentially other cloud services

■ Better integration with other parts of IT, such as development for DevOps

■ Minimizing costs and optimizing value and, by implication, documenting just how this is being done

Other data from our ITSM research indicates that a lot of these advances will have to come from better integrations with operations in terms of incident, problem, and change management, as well as shared analytics and superior process automation and workflow.

How Is Cloud Impacting ITSM Success, and What Are Some of the Obstacles to Watch out For?

In terms of how cloud is impacting ITSM success, there are strong data indicators that those ITSM teams that embrace cloud are far more likely to succeed than those that resist it. For instance, those who were extremely successful in making ITSM strategic and relevant were twice as likely to have support for cloud services in their service catalog and twice as likely to invest in more advanced levels of automation for change, both in support of cloud adoption and overall. Successful ITSM teams were also more likely to prioritize integrated operations for incident, problem, and change management in support of cloud than ITSM teams who viewed themselves as less successful.

When asked about obstacles to “superior cross-domain IT service management,” including cloud adoption, our respondents singled out organizational and political issues as number one. Poor dialog and communication across IT also ranked as a top obstacle, followed by lack of effectively defined processes and software deployment and administrative complexity.

What Should You Look for in the Future?

While I don’t have an actual crystal ball, I’m happy to make what I feel are three fairly safe predictions.

■ Cloud will continue to drive the need for better ITSM-Operations integration, a process that’s still very much in its infancy.

■ Cloud will continue to challenge ITSM teams and IT as a whole with its requirements and complexity, given the advent of software-defined data centers, microservices, and containers, as well as more pervasive public/private cloud adoption.

■ Not everything will move to the cloud, nor should it. So governance will become key—a central point of opportunity for ITSM teams. This will require understanding OpEx efficiencies as well as service relevance, portfolio optimization, and IT asset (including cloud) costs.

The Latest

UK IT leaders are reaching a critical inflection point in how they manage observability, according to research from LogicMonitor. As infrastructure complexity grows and AI adoption accelerates, fragmented monitoring environments are driving organizations to rethink their operational strategies and consolidate tools ...

For years, many infrastructure teams treated the edge as a deployment variation. It was seen as the same cloud model, only stretched outward: more devices, more gateways, more locations and a little more latency. That assumption is proving costly. The edge is not just another place to run workloads. It is a fundamentally different operating condition ...

AI can't fix broken data. CIOs who modernize revenue data governance unlock predictable growth-those who don't risk millions in failed AI investments. For decades, CIOs kept the lights on. Revenue was someone else's problem, owned by sales, led by the CRO, measured by finance. Those days are behind us ...

Over the past few years, organizations have made enormous strides in enabling remote and hybrid work. But the foundational technologies powering today's digital workplace were never designed for the volume, velocity, and complexity that is coming next. By 2026 and beyond, three forces — 5G, the metaverse, and edge AI — will fundamentally reshape how people connect, collaborate, and access enterprise resources ... The businesses that begin preparing now will gain a competitive head start. Those that wait will find themselves trying to secure environments that have already outgrown their architecture ...

Ask where enterprise AI is making its most decisive impact, and the answer might surprise you: not marketing, not finance, not customer experience. It's IT. Across three years of industry research conducted by Digitate, one constant holds true is that IT is both the testing ground and the proving ground for enterprise AI. Last year, that position only strengthened ...

A payment gateway fails at 2 AM. Thousands of transactions hang in limbo. Post-mortems reveal failures cascading across dozens of services, each technically sound in isolation. The diagnosis takes hours. The fix requires coordinated deployments across teams ...

Every enterprise technology conversation right now circles back to AI agents. And for once, the excitement isn't running too far ahead of reality. According to a Zapier survey of over 500 enterprise leaders, 72% of enterprises are already using or testing AI agents, and 84% plan to increase their investment over the next 12 months. Those numbers are big. But they also raise a question that doesn't get asked enough: what exactly are companies doing with these agents, and are they actually getting value from them? ...

Many organizations still rely on reactive availability models, taking action only after an outage occurs. However, as applications become more complex, this approach often leads to delayed detection, prolonged disruption, and incomplete recovery. Monitoring is evolving from a basic operational function into a foundational capability for sustaining availability in modern environments ...

In MEAN TIME TO INSIGHT Episode 22, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses DNS Security ... 

The financial stakes of extended service disruption has made operational resilience a top priority, according to 2026 State of AI-First Operations Report, a report from PagerDuty. According to survey findings, 95% of respondents believe their leadership understands the competitive advantage that can be gained from reducing incidents and speeding recovery ...

How Cloud Is Changing the Face of IT Service Management

Dennis Drogseth

Cloud is no longer a new topic for IT, or for IT service management (ITSM). But its impact on how ITSM teams work, as well as on how IT works overall, has probably never been greater.

Indeed, more and more IT organizations have been “moving to the cloud.” But understanding its relevance can’t be achieved by viewing cloud as a “destination,” as if it were some miraculous travel resort in the sky — in spite of the much overused phrase “journey to the cloud.”

Optimizing cloud isn’t a linear process of simply “getting there.” Rather, cloud is a multifaceted resource to be utilized, managed, and understood in conjunction with other IT resources as an enabler of cost, service, and business efficiencies.

Leveraging EMA research on the future of ITSM and on digital and IT transformation, this blog looks at data relevant to the impact of cloud on ITSM teams and addresses the following questions:

■ Where and how are cloud adoptions (both public and private) occurring?

■ How is cloud affecting IT priorities overall, and how is it affecting ITSM priorities in particular?

■ Where and how is cloud changing how ITSM teams work?

■ What are some of the more prominent obstacles to integrating cloud for service management? And how is cloud adoption impacting ITSM success?

■ What should you look for in the future?

Where and How Are Cloud Adoptions Occurring?

Our digital transformation research confirms what other EMA research data indicates: Private or internal cloud adoption is still well ahead of public cloud adoption overall, although a hybrid, 50/50 balance between public and private is very much on the rise. Yet among the more popular services, external SaaS applications are number one and externally hosted infrastructure-as-a-service (IaaS) offerings are at the number three spot. Top internal cloud priorities include software-defined data centers, internally hosted virtual applications, and internal IaaS options.

How Is Cloud Affecting IT and ITSM Priorities?

In terms of IT overall, our digital transformation research indicated that 85% of IT organizations are, in some way, linking their IT or digital transformation initiatives to cloud. The data also indicates that they view cloud primarily as a resource for transformation, but also as both a driver to promote more dialog between IT and the business and a catalyst for IT to become more holistic and cross-domain. However, some respondents felt that cloud was actually isolating IT from the business, and 15% felt that cloud was more disruptive than helpful in general.

When we asked specifically how cloud was impacting ITSM teams in our ITSM research, we saw that similarly, cloud was viewed first and foremost as a resource for expanding ITSM capabilities. But many ITSM teams also indicated that cloud:

1. Requires higher levels of automation

2. Makes us to pay more attention to DevOps

3. Makes asset management more challenging

4. Enables ITSM teams to reduce costs (could be OpEx or CapEx)

5. Puts pressure on ITSM to justify costs

6. Shortens review cycles for managing change

7. Promotes the representation of third-party SaaS services in our service catalogs

Where and How Is Cloud Changing How ITSM Teams Work?

The shifting priorities indicated above help to answer this very question. There’s a growing need for:

■ More advanced levels of automation

■ More creative and dynamic approaches to asset management and managing change

■ Expanding the reach of service catalogs to include SaaS and potentially other cloud services

■ Better integration with other parts of IT, such as development for DevOps

■ Minimizing costs and optimizing value and, by implication, documenting just how this is being done

Other data from our ITSM research indicates that a lot of these advances will have to come from better integrations with operations in terms of incident, problem, and change management, as well as shared analytics and superior process automation and workflow.

How Is Cloud Impacting ITSM Success, and What Are Some of the Obstacles to Watch out For?

In terms of how cloud is impacting ITSM success, there are strong data indicators that those ITSM teams that embrace cloud are far more likely to succeed than those that resist it. For instance, those who were extremely successful in making ITSM strategic and relevant were twice as likely to have support for cloud services in their service catalog and twice as likely to invest in more advanced levels of automation for change, both in support of cloud adoption and overall. Successful ITSM teams were also more likely to prioritize integrated operations for incident, problem, and change management in support of cloud than ITSM teams who viewed themselves as less successful.

When asked about obstacles to “superior cross-domain IT service management,” including cloud adoption, our respondents singled out organizational and political issues as number one. Poor dialog and communication across IT also ranked as a top obstacle, followed by lack of effectively defined processes and software deployment and administrative complexity.

What Should You Look for in the Future?

While I don’t have an actual crystal ball, I’m happy to make what I feel are three fairly safe predictions.

■ Cloud will continue to drive the need for better ITSM-Operations integration, a process that’s still very much in its infancy.

■ Cloud will continue to challenge ITSM teams and IT as a whole with its requirements and complexity, given the advent of software-defined data centers, microservices, and containers, as well as more pervasive public/private cloud adoption.

■ Not everything will move to the cloud, nor should it. So governance will become key—a central point of opportunity for ITSM teams. This will require understanding OpEx efficiencies as well as service relevance, portfolio optimization, and IT asset (including cloud) costs.

The Latest

UK IT leaders are reaching a critical inflection point in how they manage observability, according to research from LogicMonitor. As infrastructure complexity grows and AI adoption accelerates, fragmented monitoring environments are driving organizations to rethink their operational strategies and consolidate tools ...

For years, many infrastructure teams treated the edge as a deployment variation. It was seen as the same cloud model, only stretched outward: more devices, more gateways, more locations and a little more latency. That assumption is proving costly. The edge is not just another place to run workloads. It is a fundamentally different operating condition ...

AI can't fix broken data. CIOs who modernize revenue data governance unlock predictable growth-those who don't risk millions in failed AI investments. For decades, CIOs kept the lights on. Revenue was someone else's problem, owned by sales, led by the CRO, measured by finance. Those days are behind us ...

Over the past few years, organizations have made enormous strides in enabling remote and hybrid work. But the foundational technologies powering today's digital workplace were never designed for the volume, velocity, and complexity that is coming next. By 2026 and beyond, three forces — 5G, the metaverse, and edge AI — will fundamentally reshape how people connect, collaborate, and access enterprise resources ... The businesses that begin preparing now will gain a competitive head start. Those that wait will find themselves trying to secure environments that have already outgrown their architecture ...

Ask where enterprise AI is making its most decisive impact, and the answer might surprise you: not marketing, not finance, not customer experience. It's IT. Across three years of industry research conducted by Digitate, one constant holds true is that IT is both the testing ground and the proving ground for enterprise AI. Last year, that position only strengthened ...

A payment gateway fails at 2 AM. Thousands of transactions hang in limbo. Post-mortems reveal failures cascading across dozens of services, each technically sound in isolation. The diagnosis takes hours. The fix requires coordinated deployments across teams ...

Every enterprise technology conversation right now circles back to AI agents. And for once, the excitement isn't running too far ahead of reality. According to a Zapier survey of over 500 enterprise leaders, 72% of enterprises are already using or testing AI agents, and 84% plan to increase their investment over the next 12 months. Those numbers are big. But they also raise a question that doesn't get asked enough: what exactly are companies doing with these agents, and are they actually getting value from them? ...

Many organizations still rely on reactive availability models, taking action only after an outage occurs. However, as applications become more complex, this approach often leads to delayed detection, prolonged disruption, and incomplete recovery. Monitoring is evolving from a basic operational function into a foundational capability for sustaining availability in modern environments ...

In MEAN TIME TO INSIGHT Episode 22, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses DNS Security ... 

The financial stakes of extended service disruption has made operational resilience a top priority, according to 2026 State of AI-First Operations Report, a report from PagerDuty. According to survey findings, 95% of respondents believe their leadership understands the competitive advantage that can be gained from reducing incidents and speeding recovery ...