The new IT-as-a-Service model: what does it mean?
IT-as-a-Service is a byproduct of the new flexible consumption model that has become part of our everyday lives. This “pay only for what you use” pricing structure, which has existed for decades in things like electricity bills, has spilled over into other areas including our cable television packages. We no longer have to pay for those channels we never watch thanks to a-la-carte cable providers such as Sling TV.
The flexible consumption model is also disrupting the business world in a predominant way. One of our clients, Convene, is revolutionizing the way companies organize and hold corporate events by allowing businesses to choose the services they need. Aimed to deliver “workspace-as-a-service”, Convene encompasses contemporary workspaces with hospitality facilities and a technology platform.
It’s no wonder that technology and consulting firms are having to scramble to adapt to this new IT-as-a-Service business model. They have no choice. Customers are demanding it. And here’s the main reason.
Deloitte refers to ITaaS as “the half trillion dollars ‘niche’.” According to their 2017 Global Technology, Media and Telecommunications Predictions Report, spending on IT-as-a-Service for data centers, software and services will be just under $550 billion worldwide by the end of 2018.
This is clear evidence that the traditional “on-premise” solutions model is on its way out. Evolving startups and established enterprises are no longer forced to overpay for things they don’t need. Gone are the times of expensive add-ons or unused and wasted assets delivered by an inflexible service subscription.
Today’s modern businesses need solution providers that can scale and grow with them and adapt to their overall needs, which is exactly what we’re able to do here at iTechArt. Our entire business model is based on flexible consumption. It’s how we help our clients build solutions by providing them with the exact staffing they need at different times throughout the development process.
The Deloitte report predicted that at the current rate of growth, ITaaS will make up more than half of all IT spending by 2021 or 2022. More and more companies are having to face the fact that they will need to embrace the flexible consumption model or get left behind as customers turn to their competitors.
We don’t want that to happen to you. Contact us for all your software development needs and let’s get to work building the future.