The ITaaS revolution is coming: are you ready?

IT as a Service (ITaaS) will foster massive disruptive change for IT managers the world over: are you ready?

IT as a Service is a revolution in the way cloud based technology services are sourced, supported and used. Like all revolutions all the elements will need to be in place for it to flourish. Initially the change will be ignored as a fad, but as revolutionaries push their case, (and they are big revolutionaries) the ground swell happens and others jump on the bandwagon.

The ITaaS revolution is happening now and it will fundamentally change the way your IT, and IT management works.

This revolution requires new services to be packaged and mapped to specific business uses, whilst the existing IT management function will be in direct competition with external cloud based IT service providers. ITaaS means effective management of IT sourcing is becoming a must have capability.

Cost savings are just the start

Cost savings are the primary mover for organisations to consume ITaaS. Its availability moves a straightforward business expense into a competitive ‘market provided’ environment.

Just like the cloud created disruption and market competition pushed prices down, the ITaaS revolution will do the same and it will become an imperative for adoption.

This market disruption will also foster innovation from new currently unknown, products, and lead to a knock-on increase in business operational efficiency positively impacting a businesses competitive advantage.

Relevant services can also be sourced as flexible, scalable and on-demand, further pushing down costs whilst improving user satisfaction for all organisations.

IT as a non core commodity service

As new cloud based IT products get more complex and the pace of change increases, focus on a business’s core product inevitability gets deflected in race to keep up. Moreover, IT is a complex, fast moving, expensive, time consumer, deflecting a business from focusing on its core product and its competitive advantage.

The deflection of a business from its core product and the idea that IT can be managed and delivered in an altogether different way, by viewing IT as a commodity, with a different set of business expertise, will appeal within many industries.

The need for new skills

But taking advantage of this market place approach to ITaaS, will require a new mindset: a ‘buy it & not build it’ approach. Consuming ITaaS will require new roles within the IT organisation, including; commercial management, supply chain management, account management, portfolio management and service integration management.

A transition to an ITaaS model will be a business wide impact and will require IT leaders to change their approach. Leaders will need to focus on better communication and management of service users. They will need to change to become a broker of services between the supplier, (whether external or internal), and their business users.

ITaaS: pricing the new service

To enable effective sourcing decisions to be made all costs will need to be effectively assessed and measured. A new ITaaS costing model will be needed. This new model will require the existing IT service unit to operate as a costed standalone business, funded by the business side of the organisation for the services it provides. Whilst part of its role will be to reduce operating costs by constantly seeking to source alternative IT services.

ITaaS is the future: where are you?

Business and IT leaders need to take a (quick) step back and re-calibrate how they view their IT organisation.

The last few years has been about cloud and cloud service provision. But now the opportunities that the cloud and the cloud business model opens-up are driving into the very heart of the existing IT delivery model its capability and skills.

The external IT market place is driving change and innovation and commoditisation. Accessing that innovation and the advantages it provides will mean a fundamental change to roles and the way IT services are delivered in the future.

For a real life example of introducing an ITaaS operation, take a look at Case Studies

 

 

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