Running IT-as-a-Service Part 25: Understanding the cost drivers of Application-as-a-Service
Conclusion: One of IT organisations’ objectives must be to reduce the total service cost of legacy applications by migrating them to a Cloud environment. However, achievement of the desired success largely lies in limiting the scope variations of Application-as-a-Service contracts and controlling the hidden cost drivers. This requires leveraging the lessons learnt in containing outsourcing cost and establishing flexible contracts in the legacy environment. Failure to do so may extend the legacy system lifetime and leave IT organisations with no alternative but to absorb the increased cost of application management on an ongoing basis.
About The Advisor
Dr. Wissam Raffoul was an IBRS advisor between 2013 - 2021 who specialised in transforming IT groups into service organisations, with particular expertise in IT Service Management (ITSM), process optimisation, outsourcing and Cloud strategies, enterprise systems management solutions and business-centric IT strategies. Prior to joining IBRS in August 2013, he was General Manager strategic consulting in Dimension Data advising clients on applying technology to improve business performance. Prior to joining Dimension Data, he was a Vice President in Gartner/META Group and issued various research publications covering service delivery processes, centre-of-excellence models, managing outsourcing vendors, benchmarks, maturity models, IT procurement evolution and supply/demand models. In previous positions, he headed HP ITSM consulting Practice in Australia. He also acted as an infrastructure manager, reporting to the CIO at a number of large organisations in government and in the financial and petrochemical industries.