In essence, they are saying they need digital transformation, defined as “the use of technology to radically improve performance or the reach of businesses.” Despite significant investments in digital transformation, many organizations are still struggling to modernize their IT infrastructures and leverage advanced technologies in innovative ways. XaaS can help them accelerate these initiatives at lower cost and with reduced risk.
A New Phase of Digital Transformation
To date, digital transformation projects primarily involved digitization, not digitalization. Organizations adopted cloud and mobile technologies to improve data flows and make existing business processes more efficient. Most did not redesign their business models to take full advantage of these technologies. As a result, many digital transformation initiatives failed to improve business outcomes because organizations did not have the right objectives in mind.
Digital transformation is entering a new phase that’s focused on integrating AI into every aspect of operations. AI is in itself transformational, driving change that’s led by the business rather than by technology itself. With AI, organizations have an opportunity to achieve true digitalization — or find themselves left behind.
Still, many remain concerned about the risks associated with digital transformation. They are weighted with significant technical debt, increasing the cost and disruption of modernization initiatives. Because of the persistent IT talent shortage, they lack the resources they need to drive strategic projects. Cybersecurity threats are a constant worry.
XaaS to Support AI
Organizations are also finding that traditional IT infrastructure cannot support AI effectively. Common reasons why AI implementations fail include inadequate compute capacity, latency issues, processing bottlenecks and incompatibilities. All of these stem from insufficient infrastructure.
XaaS can help relieve these pressures. With an XaaS model, organizations can gain IT on demand and fully transition IT to an internal service provider for the business. XaaS makes it possible to acquire infrastructure and services that are finely tuned to the needs of each workload. Organizations can accelerate their modernization initiatives and align KPIs to business outcomes.
This is hardly a new concept. The idea of “everything as a service” emerged in the 2010s, and the as-a-service model dates back to the 1960s. What’s changed is that organizations aren’t using the public cloud for general-purpose infrastructure and traditional applications but to create an IT environment that’s optimized for AI.
XaaS in a Managed Model
Because it is a consumption-based model, XaaS enables organizations to utilize the infrastructure as needed to meet workload demands. It also helps organizations overcome skills gaps by eliminating some of the complexity associated with implementing cutting-edge technologies. Organizations are not tied to a single vendor but can diversify their IT portfolios across an ecosystem of service providers.
In a 2023 IDC study, more than three-quarters of respondents agreed or strongly agreed that XaaS is important to their IT strategies. That’s not to suggest that leveraging an XaaS model is easy. Organizations expressed the greatest interest in providers that assist with the implementation and management of their platforms.
By partnering with Technologent, you gain access to a team of experts who can assist in the transition to XaaS. We have a practice dedicated to evaluating XaaS solutions, developing cost models and metrics, and integrating cloud-based platforms into a cohesive environment. Let us help you leverage XaaS for digital transformation to support AI.
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