The past five years have seen an increasing transition to “as a Service” and cloud solutions. This trend is predicted to see continued growth and expansion. With this cloud shift comes the opportunity for change to other organizational processes, one of which is in IT procurement. The modern business environment has empowered IT departments to overhaul cumbersome RFP processes when new services are required.
A large number of software manufacturers are moving to cloud, web app, or other as a Service delivery models for their products, and companies are embracing the shift. The days of organizations rejecting cloud solutions in fear of security issues have passed, and the flexibility and power of these products are too attractive to ignore. Spending on such products has risen dramatically, and businesses using them today intend to expand as new needs arise.
Today’s Procurement Problems
Many issues exist in allowing individuals or departments to conduct their own purchasing. Wasted technology spending occurs due to piecemeal purchasing (rather than volume buying), security issues may result from unvetted applications, and loss of visibility leads to inaccurate budgeting. Renewals are also problematic because there’s no clear utilization information for the software, nor is there an easy way to see who is using what software to determine necessity — or whether other solutions are satisfying the same need.
Optimizing the Process
The cloud shift gives IT procurement an opportunity to bring all software and hardware together for assessment. This is a chance to:
- eliminate redundancies,
- have more controlled technical spending,
- check pricing for available group or volume discounts,
- change subscriptions to more cost-effective plans, and
- integrate desirable applications into monitoring and management software for performance visibility.
Making decisions in alignment with enterprise goals in a unified manner helps the company act more strategically and build a more cohesive network of services and applications. When this type of visibility is possible, it drives the organization to greater heights.
Driving Value Holistically
Unification has been a beneficial side effect of cloud shift, helping IT point out solutions that can improve all parts of the company. Technical procurement members touch every department and every piece of the organization, see every technology expense, and are the best informed to lead decision making and obtain innovative products that boost the entire enterprise to a higher performance level.
As the cloud shift has taken place, it has afforded IT procurement a new leadership role. This group will be a valuable component in setting enterprise technology strategy and helping guide decision making and budgeting efforts.
When IT is able to have more control and manageability of hardware, software, and licensing, costs are driven down and systems are optimized. For more information on IT procurement in the days of cloud shift, contact Coda Global today.