Profit-hungry IT providers like IBM and Oracle are hoping their service innovations will expand their margins and boost customer loyalty. But hype-wary clients are skeptical about how their business performance will be affected, positively or negatively, by their providers' service innovation efforts. To overcome clients' skepticism, IT providers must classify their service innovation initiatives based on their strategic impact on clients' business performance, and better articulate the business value to targeted stakeholders in client organizations. Winners among IT providers will continually calibrate a dynamic portfolio of service innovations.