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Pay-As-You-Go IT Services: Where's the Business Value?
Saugatuck Technology, April 2004, Pages: 54
This study focusing on buyer trends, motivator and inhibitors concerning Pay-As-You-Go IT, a next-generation IT deployment and services model.
It presents key findings, supporting data, and our insights regarding the implications for senior executives who are using, considering, or as yet uncommitted to implementing PAYG IT services.
'Pay-As-You-Go' (PAYG) IT is delivering real business benefits, and is moving beyond early adoption as it accelerates rapidly toward the mainstream.
Termed “On Demand” by some, “Adaptive Enterprise” or Utility Computing by others – all are essentially talking about how IT will increasingly be available for use on an as-needed, as-used basis.
Such a capability provides flexibility for businesses to grow and change, and to compete effectively while managing expenditures on more of a 'utility' basis.
This report estimates that up to 73 percent of business, finance and IT executives are now familiar with PAYG as a concept, and also that current users are convinced that PAYG can help reduce costs and complexity, and enable competitive advantage.
The findings indicate that nearly 20 percent of companies are already taking advantage of PAYG, with more than 50 percent of executives citing business benefits.
At the same time, however, analysis reveals that this mini-revolution will take time to unfold – for both the underlying technologies that support its longer-term vision, as well as the business applications and sourcing models that will help make it a reality.
Further, it won’t be a panacea for all companies in all situations.
Early adopters who have gotten the biggest returns are those that have highly variable infrastructure and application requirements – or who have pockets of internal customer demand that would be prohibitively expensive to fund under normal operating scenarios.
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