As-a-Service

Conclusion: The usefulness of Web based applications is not limited to the provision of Web-enabled front-ends to traditional business software. The Web also allows the design of applications that are capable of putting powerful human intelligence at our fingertips. Tapping into that intelligence to solve truly hard problems possibly constitutes the next disruptive innovation. Intelligence has never been cheaper!

Conclusion: A perfect IT storm is looming, driven by merging category 4 storms such as Utility (or cloud) computing, and the Red Shift growth in massive computing. The force of the storm will be exacerbated by rising energy costs and their impact on the data centre energy budget. As a consequence, in a few years many mid to large organisations have at least all their non-differentiating applications running on remote shared SaaS-like sites. This will have a significant impact on the IT department and it’s CIO.

Conclusion: Implementing a web service oriented architecture leads to more maintainable application systems that are cheaper to operate - if you can afford to wait three years or longer, without resorting to cutting corners, or even pulling the plug. Reduction of risk exposure is the real and immediate reason why consumption and creation of services should be an essential part of renovating and evolving the enterprise application landscape of a software intensive business.

Conclusion: Compared to the consumer market, the enterprise market is more conservative when letting an external service provider store and manage its critical business information remotely, via the web. But in the face of spiralling internal IT operational costs, many companies are likely to significantly expand their use of Software as a Service (SaaS), previously known as Application Service Providers (ASPs) over the next five years.

Utility Computing is gaining higher levels of customer interest and acceptance, amid significant investments by systems vendors to build on their individual "brand" (e.g., Adaptive Enterprise, On Demand, Real Time Infrastructure) and the resulting cacophony of terms, definitions, and strategic directions. However, there still remain several crucial "missing-technology-links" in the evolutionary chain -- these will be addressed by both traditional software and systems vendors, as well as Open Source providers.

''On-demand''—or ''adaptive,'' ''agile'' or other terms being used by major vendors includes the combination of business models, processes and operations that are enabled by and which require these IT resources. This concept is therefore more of an overall business strategy, including not just the availability of IT resources ''on-demand,'' but the ability to build, change, adapt and manage business operations using and leveraging the ready availability and variable capabilities of utility computing.

Conclusion: The pay as you grow benefits of Application Service Providers* (ASP's) are finally approaching critical mass in Australia as a result of greater penetration of broadband technologies (cable internet, DSL, satellite and wireless) and more substantive vendor offerings.

Conclusion: IT organisations wishing to select quality services at competitive prices should rate themselves against an IT procurement maturity model to leverage economies of scale. This will enable IT organisations to reduce cost while meeting business needs in a timely and cost-effective manner.