Infrastructure-as-a-Service or Internal Deployment

Infrastructure-as-a-Service (IaaS) is a version of Cloud-Based computing that refers to a hosting service providing infrastructure for a business process. These solutions are traditionally built from market-leading technology typically desired by large companies to transform their organization. However, IaaS solutions are designed for deployments at smaller companies or departments where the client buys hosting services from a partially or completely shared environment. IaaS solutions have carved-out a market space where the smallest amount of  hardware, software, and software configuration that can be procured is larger than can be cost effectively divided among the users of a small organization or department. However, many larger organizations look to IaaS solution providers to solve enterprise-wide needs where the technology being deployed requires minimal configuration and customization.

Over the past 40 years these types of technology capabilities have been the purview of corporate IT managers. IT managers have traditionally had the responsibility to make strategic IT proposals to executive leaders requiring substantial investments of capital. However, since the advent of business process reengineering and optimization (e.g. Six Sigma) in the late-1980s software and infrastructure have increasingly drawn the attention of business executives looking for opportunities to transform business processes and reduce cost.

IaaS services are a welcome answer for many business executives, but often appear the most sensible solution for many of the wrong reasons. Often the most compelling reason for using these services is to avoid making a capital request or strategic proposal to executive leadership. The concern is that an expensive internal deployment would require consensus of multiple units and executives (e.g. usually the right objective) delaying deployment. However, new, IP-based, centralized and modular technologies like IP Call Centers should be deployed across the business to provide the biggest benefit. Many IaaS solutions come with service level agreements designed to maintain a standard operation, which can often work against the customization necessary to derive a transformational benefit.

IaaS is a more strategic solution when there is a plan to move to the same name-brand solution, and the IaaS service is contracted so that it can be integrated into a future enterprise-wide solution. An IaaS solution can also be a reasonable approach to mitigate the risk of deploying new IP-based solutions that require consolidation and centralization of infrastructure. By using an IaaS service that can be transferred to the client completely or divided over time between between the client and vendor the IaaS service becomes a safe and predictable way for an organization to make the transition to a new technology while continuing to operate the old technology.

Ignoring or avoiding the need for IaaS solutions within an organization can lead to unannounced purchase orders ending up on an executive’s desk with a request for immediate approval. The challenge for executives is that deciding between an internal deployment and an IaaS services requires a larger strategy. Adhoc IaaS deployments can often lead to diminishing the benefits of a larger enterprise-wide strategy.

Adam Smith Consultants bring deep experience with both capital investments in infrastructure as well as Infrastructure-as-a-Service solutions for data center, web, IP-telephony and IP contact center solutions. Our consultants have led the development of business cases, transformation strategies, as well as managing the launch and deployment of internally delivered capital projects as well as procuring service-based solutions.

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