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Shift of IT from Product Centric to Service Model

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CIOInsider Team

Today’s industry sectors are weighed down by the way IT worked in the past years. The technology has changed drastically and the evolvement of IT sector from product centric to service model was in a rapid flow. They were wasting money, time invested and resources used in the outdate technologies of infrastructures. Now enterprises are adapting new information technologies in order to have quick growth of the business in the coming competition field. Corporate sectors are establishing their technology by accepting the newer service models of the Information Technology.

This newer policy of information technology is stealing the big market share from the big players in the industry who still follow the traditional way of product centric sector. Over the past some decades, as corporations shifted more of their actions into the digital space, they desired IT to make it possible. Most turned to a handful of big enterprises that provided IT solutions. Then the providers made each unique IT set-up even more complex. The net result of the businesses ended up with a huge amount of IT infrastructure. It’s expensive to operate and maintain and requires a big staff involvement.

In recent years new technologies have changed the entire process of business sector. Many huge tasks which had lot of risks has reduced to maximum and made it much easier by the new Information Technology procedure. The usage of hardware has reduced drastically and industries are moving around for the software models these days. Many enterprises are making the effort of connecting to the cloud, and networking within large corporations, only a small fraction of what corporations have been spending and faster than what corporations have been using since then. To make a modern corporation sector the traditional mode of using IT through product center must be pull out and welcome the new mode of IT services which extends the growth of the enterprises. The benefits to the business sought by using the IT as a service model include the standardization and generalization of products supplied by IT. This improves financial transparency and more direct association of costs consumption. The transformation of an inner IT organization from operating as a cost-center to an IT as a service model is supposed to deliver improved levels of business clarity for the enterprise in the whole industry.

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