If the Boston Brahmins decide to take the ITSM leap, the simplicity of SaaS-based pricing models will remain a core deciding factor.

Changes in the business and regulatory environment often mandate the push towards a SaaS-based delivery model. There is constant debate on the merits of upfront investment vis-à-vis leaving the IT service management infrastructure to a SaaS vendor. Some other costs avoided include the capital expense of buying hardware, and compliance ideas as well as security best practices.

IT service management needs to be more granular. It can be either a more focused, slimmed-down help desk application centered on basic incident management workflow as well as for asset stores. The SaaS delivery model also provides more detailed information on technology infrastructure and best-practice IT workflows. Choosing the right IT service management approach is critical.

This not only determines technology costs, but also drives business agility for years to come. Most organizations on a fast growth trajectory neglect a suitable customized SaaS-based IT service management platform.

Most importantly, the user base size, along with staff and associated skill sets, can help in organizational transformation. The range and complexity of the workplace are directly correlated with user demographics as well as attitudinal (psychographic) variables. The usual ideas are often cited as catalysts for growth; including a CIO focus on IT service management processes and IT infrastructure Library (ITIL) best practices to drive growth.

Multi-tenant architectures are often those that offer high scalability, as expansions are made to the existing platform to increase the entire environment capacity. Providers also assess utilization, speed, and response times. Vendors usually do not leverage multi-tenant infrastructure to create value.

SaaS Pricing

Organizations opt for SaaS due to the following; a cost per month (or year) model needed to operate ideas including support and maintenance, at a lower and more affordable price point. The logical precursor to the SaaS model was the Application Server Model (ASP); remote provisioning of an application through a traditional licensing and annual maintenance model.

The dot-com bubble eventually led to the collapse of the earlier solution. Most traditional ITSM vendors work with SaaS versions of existing offerings, and new dual-play vendors. Although a lot of information is available, and a new avatar of SaaS has emerged, there is a degree of skepticism on the growth of the industry.

If the Boston Brahmins decide to take the ITSM leap, the simplicity of SaaS-based pricing models will remain a core deciding factor. Usually software licensing models offer vendors the ability to flex their competitive muscles, build customized solutions, and maximize revenue streams.

Management can harp on simplicity. However, traditional vendors have to alter their mindset to create a paradigm shift. Being crystal-clear on licensing can risk customers losing out on traditional services revenue. Vendors also leverage relatively low-cost ITSM tools specifically to generate new business for their consulting ventures.

Process Consulting

When technology organizations decide to do a quick assessment of readiness, they need to figure out critical components that have to change and the amount of transformation involved. Process consulting vendors usually have built-in capabilities around this kind of assessment with proprietary techniques and toolkits. When an environment is ready for SaaS migration, the correct step is to identify the right tool for the job.

A few notable examples are ServiceNow.com, Beetil, Octopus Software, LiveTime Software, HP, and CA among others. Choosing a right vendor also depends on factors such as flexibility of the tool, backend technology, time to market (implementation cycle), cost, support model and expertise, security and confidentiality of data. After selecting an appropriate client, managing other important considerations including future size and complexity remains a key challenge.

In an extremely complicated environment, a comprehensive solution can reduce automation and management speeds. Although the usual jargon may be spouted often, of “service orientation”, only choose the solution that is more suited to a customized business environment. Most of us are tired of hearing similar explanations that can jar sensibilities. Coupled with an opinionated and variable user base, it can be hard to track underlying technological assets and assure service levels.

A broader IT service management solution with mature change management processes can help reduce costs, errors as well as group configuration changes and alter order. If the business wants to significantly improve compliance with leading industry best practices, carefully examine lacunae in current processes. Managers need to align technology with the business. When IT is an ideas enabler, it has the potential to rapidly accelerate market growth.

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