The Hub Commentary

SaaS has the ability to move the cost of supporting infrastructure and applications from the in-house staff to a service provider, but these are the commodity services.  We have discussed in previous business service management posts that it is important to categorize services as value-add, differentiators or commodity, manage for cost.

While I agree with the author on his points of flexibility, configuration and customization, I caution that if it is a service that requires customization than: either 1) you need to reconcile if it is a commodity service and the standard can be accepted or 2) that it is a differentiating service and should stay in-house.

Services that are easy to defined, contained and non-differentiating are well suited for outsourcing.  Accept and embrace the standard, not all services are created equal and take the opportunity to impose standards for the commodity to drive down costs.

Do you have a service map for commodity versus value?

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Michele

Of all the three models of cloud computing: IaaS, PaaS and SaaS…SaaS (Software as a Service) is the one that has the most appeal and potential to evoke interest from enterprise CIOs.  The popularity of SaaS is expected to grow several times in the near future.  Read full article