All of these hardware and software assets have to come from somewhere, which is why IT procurement is also a major focus for many business leaders. While it’s absolutely true that the traditional model of procurement has and will continue to benefit many different types of organizations, an alternative has emerged in the form of the IT as a service model—something that also brings with it a wide array of different benefits that you can’t afford to ignore.
Where the Traditional Model of IT Procurement Might Fit Into Your Business
In a general sense, the traditional model of IT procurement is the one that most people are likely familiar with. Here, you’re talking about a “rip and replace” strategy—you research what assets you need depending on your business’ goals, you buy that technology, you pay to maintain it and then you upgrade it when the time comes.
Many businesses love the fact that this all but guarantees very competitive pricing on assets, assuming that they’re continuing to go out into the marketplace and receive bids from multiple vendors on a regular basis. This also generates a much-needed price certainty for many people, as what you pay for is what you get.
The major drawback of this approach, however, is that you’ll usually need to pay more if you find additional issues. If you and your employees eventually discover a gap in your IT capabilities, the only one responsible for filling that gap is you.
But more often than not, organizational leaders enjoy the traditional model of IT procurement because it’s a tried-but-true method with which the market is already intimately familiar.
The Benefits of the as a Service Model
The rate at which technology continues to advance has only increased over the last few years, it should come as no surprise that the cloud consumption model (also called the “IT as a service model,”) has grown popular with many different types of businesses thanks to the myriad of advantages the traditional model cannot match.
1. All Access to Computing Resources
For starters, the cloud consumption model throws nearly everything you know about the traditional model out the window. Instead of buying technology, paying to maintain it, paying to upgrade it and replacing it indefinitely, you get access to all of the computing resources you need delivered in an on-demand fashion. Yes, it’s true that you don’t actually “own” the technology—but this brings with it a dramatically reduced footprint, a guarantee that you always have access to the resources you need and a far better overall TCO (total cost of ownership) as well.
2. Increased Revenue Generation
At its core, what you’re really talking about is a shift from a CAPEX to an OPEX model when it comes to your technology infrastructure. Rather than looking at IT assets as a necessary expense to incur to create some type of benefit in the future, those same assets become an essential part of your day-to-day revenue generation efforts. In other words, IT is no longer a cost center so much as it is a revenue engine.
3. No More Getting Nickel-and-Dimed
Another one of the major benefits of the cloud consumption model is that all of those unpredictable costs (like training for employees, ongoing maintenance, sudden repairs, etc.) are traded in favor of fixed, predictable monthly payments. You always know exactly what you’re paying (and what you’re getting for that expense) because it’s baked into your managed service contract at the start. Overall, this makes your assets far easier to acquire as well because adding something like additional storage, compute power or provisioning for more users is as simple as picking up the phone and making a call.
4. Pairs with a Team of Experts
But the most important benefit of all is that with this model also comes a dedicated team of experts who not only know your technology, but who also know how to leverage it to save you a great deal of money in the long-run.
Comport’s ComportSecure service team, for just one example, is available 24 hours a day, seven days a week, 365 days a year to guarantee the comprehensive data availability you need when you need it the most. Instead of waiting for someone to call you back during an outage and hoping they will understand your environment, an as a service partner will work proactively to stop those issues from happening in the first place. Your emergency needs will likely be far less frequent than ever, which ultimately means you and your employees can be as productive as possible without compromise.
A Choice Only You Can Make
In the end, it’s important to understand that there really is no “one size fits all” approach to building and maintaining the right IT infrastructure for the modern enterprise—particularly as far as these two concepts are concerned.
For some organizations, the traditional model has always and will continue to make the most sense. They need access to the competitive pricing that this model allows, along with the confidence that only comes with knowing what you pay for is ultimately what you get.
For many other businesses, however, the cloud consumption model has ushered in a bold new perspective in terms of what is possible when it comes to IT. Not only will they be more than willing to trade the time and effort of the traditional model for fixed, predictable monthly payments, but they literally need access to a team of professionals dedicated to proactive maintenance in a way that saves them money in the long run.
It most cases it’s likely a combination of the two will be most successful. Only by taking a look inward at your own needs and what you hope to accomplish with your IT infrastructure will you be able to make the decision that is best for you.
If you’d like to find out more information about the advantages of traditional IT procurement versus cloud consumption and IT as a service model, or if you have any additional questions that you’d like to go over with an expert in a bit more detail, don’t delay—Contact Us today.