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ITaaS brings flexibility in IT procurement

Dubai, April 12, 2014

IT-as-a-Service (ITaaS) is, in essence, the delivery of technology on a subscription basis, thereby turning Information Technology from a capital to an operational expense, said experts.

This brings much needed flexibility in IT procurement for Middle East organizations, they stated.

With ITaaS, technology solutions can be deployed as and when needed and organisations only need to pay for what they use. This allows IT to be a strategic enabler of the business while helping to ensure that the purchase and consumption of IT services is always fully aligned to business requirements.

Moving towards a subscription model can significantly reduce upfront costs, making IT expenditure more regular and predictable and giving organisations greater financial transparency. The fact that organizations are buying a service, rather than the IT equipment itself, should also give businesses greater access to expert technical support and  the latest, up-to-date hardware.

Yarob Sakhnini, the regional director, Mema at Brocade Communications said: “In the IT networking arena, acquiring network infrastructure on a subscription basis, as opposed to an upfront cost, has big advantages for organizations in the Middle East. In slow periods in the summer months and during Ramadan, businesses in the region slow down and the amount of data being handled by the network decreases."

"Corresponding, in peak times, traffic volumes can peak. Enterprises can align network capacity with fluctuating business demands, allowing them to scale their subscription up or down according to actual network use, with minimal risk and no capital outlay," he added.

According to him, the demand for this sort of offering has risen in recent years in the Middle East, with businesses increasingly keen to gain more flexibility – both financially and technologically – and take advantage of the fact that they can get the latest network technology without committing to fixed terms or penalties for early termination.

There’s no doubt that moving to an ITaaS model will be a big change for many organizations.  Therefore, once the enterprise has made the decision to adopt ITaaS, there are some key organizational shifts and strategic decisions that are necessary for positive integration, he noted.

Firstly, when adapting to this change, it is crucial to empower IT teams to reinvent themselves as a flexible and innovative service provider – rather than a cost-centric technology group, stated Sakhnini.

It is therefore often helpful to amend the organizational structure and set key performance indicators with a service-orientated delivery company in mind. This ensures the company truly embraces the change but also helps make sure that everyone has a clear understanding of the plans ahead, he added.-TradeArabia News Service




Tags: technology | procurement |

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