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Why You Should Consider Moving Your Business to the IT-as-a-Service Model

By: F3 Technology Partners - Thursday, February 16, 2017
>Why You Should Consider Moving Your Business to the IT-as-a-Service Model

Data as a Service (DaaS), Platform as a Service (PaaS), Software-as-a-Service (SaaS) and Hardware-as-a-Service (HaaS) — thanks to the cloud technology, these are evolving solutions that are a part of the emerging IT-as-a-Service (ITaaS) ecosystem. 

This ITaaS model, also known as ‘managed services’, is an approach that equips businesses with enhanced flexibility, improved resource management, and more agility in today's constantly changing business environment. In other words, ITaaS combines hardware, software, and a variety of enterprise-level technology-related needs that can solve the toughest business problems while capturing the greatest opportunities.

Leading business establishments all over the world are starting to realize the value of ITaaS in leveraging unparalleled experiences at every stage of the customer's journey through cloud-based services. Primary reasons underlying the overwhelming popularity of the IT-as-a-Service model includes the following benefits.

Improved Managerial Efficiencies and Cost-effectiveness

The ITaaS model, usually administered and monitored by a Managed Service Provider (MSP), delivers top-notch managerial and technological solutions that essentially eliminates the hassles of hardware integration and internal investments.

Partnering with an MSP offers businesses more flexibility to focus on key growth avenues, rather than draining their resources on implementing technological solutions at the entire organizational level.

The ITaaS model also empowers enterprises with the option of adjusting their MSP partnerships, if business requirements demand it. This helps businesses manage their cost effectiveness in addressing specific needs without the need to invest in internal structural changes.

Transforming the Capital Expenditures of an Enterprise into Operating Expenses

Today most corporate professionals, mainly due to the current economic environment, lean towards monthly payment structures for products and services. The ITaaS perfectly resonates with this change in behavioral pattern, offering businesses a 'pay-as-you-go' operating model without essentially any capital investments for their IT solutions.

The need-based payment model enables conversion of capital expenditures into operating expenses, which is translated into affordable monthly payments.

Role of the ITaaS Model in Creating a Valuable Business Legacy

The solutions offered by the MSPs standardize the service offerings, enabling the optimization of profitability through efficiency and automation.

Managed services also involve a smooth transition plan that enhances the legacy of value, this is especially beneficial in today’s M & A environment.

Estimations from noted research papers highlight 4 to 6 times EBITDA [earnings before interest, taxes, depreciation, and amortization] for an enterprise on the 'one-time sales' model, as compared to 6 to 8 times EBITDA for companies on the ITaaS platform.

The Significance of aaS Model is Heightened by its Inherent Scalability Features

Modern organizations need to quickly adapt to fluctuating needs and constantly changing business structures. MSPs help new-generation enterprises cope with this rapidly changing business environment, offering them the much-desired layer of scalability by effectively managing their key business areas.

When enterprises partner with an MSP, they can precisely select and pick the exact services they need, all the while having the liberty to choose a preferred service provider fit to meet their specific business requirements. 

With a trusted MSP, businesses can leverage the scope of developing custom-made services, specifically tailored in-sync with their organizational needs. This approach ensures scalability, making organizations more agile by offering them the flexibility to add or lessen the level of services as and when necessary.

The flexibility and scalability offered by the ITaaS model are extremely critical in this modern business environment. The service, offered by managed service providers, seamlessly enable enterprises to reconfigure their business processes through precise solutions designed for their specific business needs.

Business enterprises integrating the IT-as-a-Service model can have a clear-cut edge over its competitors by leveraging the three fundamental requisites of today's business - predictability, profitability, and diversity.

IT-as-a-Service, in the recent future, is expected to transform businesses to the next level. The model, in fact, is the beginning of a new technology revolution. An enterprise, which aligns itself to managed services will invariably have more focus on the unfolding business opportunities while maintaining increased possibilities of retaining their customers through enhanced performance efficiencies. 

Learn more about F3 Technology Partners' MSP services here.

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