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ITaaS: Managing IT as a Separate Business Entity
IT as a Service (ITaaS) is a business operational model where the IT group is run as a separate entity from the rest of the organization, serving Line of Business (LOB) groups within the organization as its customers. Often the internal IT group must also compete against external IT options, which would include outsourcing vendors and public cloud providers, to meet the needs of the LOB. Research and Markets estimates that the Global ITaaS Market will grow at a CAGR of 31 percent over the next five years.
Benefits of the ITaaS model include:
- Promotes competition
- Provides better information to the customer to make informed decisions
- Offers Price Transparency
- Leads to standardization and commoditization of services
IDC says that “creating a mature, strategic business alignment between IT and its customers requires a clearly defined end-state vision, an empowering IT culture capable of initiating rapid change, and an increasing focus on the financial costs and benefits as measured from a consumption basis versus the traditional cost-budget basis… The ability of CIOs and IT organisations to grasp how business wants services that serve actual business needs, not traditional IT components, is significantly altering the ways in which service management is defined as successful.”
“Business wants services that serve actual business needs, not traditional IT components.”
This is a great point. No longer is IT about internal IT environments with networking, servers, etc. The cloud has brought in a whole new aspect to IT and so there needs to be more focus on IT as a whole – services, components, and in-house and outsourced staff – rather than just managing one aspect of information technology management.