Enterprises of the 20th century were accustomed to housing their infrastructure onsite, managing all aspects of IT and navigating changes in the market gradually. As cloud solutions become more widespread, it will help level the playing field and allow smaller, more agile companies to edge out bigger, lumbering enterprises.
CIOs are seeing the benefits of paying a subscription fee rather than investing in a big hardware spend. The frequent updates and advances in software applications mean that cloud solutions make sense for enterprises that want to stay competitive both in efficiency and in the customer experience.
Scalability is leveling the playing field. It used to be that only the biggest enterprises could enjoy the advantages of the best software, but subscriptions make it easy for small- and mid-size companies to access the same tools large enterprises are using. For any size business, subscriptions make a team more agile, able to scale up or down based on changes in the marketplace.
Enterprises — the finance department, in particular — love the subscription model of cloud options because the investment can be categorized as an operational expense, rather than a capital investment. The ability to scale up or down also lowers the fixed costs of the enterprise and makes it easier to adjust spending to accommodate demand.
Everything as a Service (XaaS) is now an option. While Software as a Service (SaaS) and Infrastructure as a Service (IaaS) have been in use for a long time, the growing service industry is also allowing for the growth of other service areas, including security management and managed services. The XaaS mindset is dominating conversations about digital transformation as executives weigh the benefits of housing more of their IT management with service providers.
The service economy has plenty of room for growth. The market is just entering a shift from “procure and maintain” to a full-service economy. Enterprises are embarking on plans to embrace XaaS models of completing business processes, but there is a lot of opportunity for service providers to capture growth in emerging technologies like artificial intelligence, the Internet of Things, and Big Data analytics.
The shift to the service economy is evident across a variety of industries. Examples like car-sharing or pay-by-the-hour jet rental can be compared with companies in the financial arena sharing data management services.
If you’d like to capture new opportunities in the service economy, Focal Solutionscan help you. When you choose Focal Solutions as your trusted telecom partner, you are choosing to extend the range and value of your own IT team. Contact us today to learn more.