{"id":3162,"date":"2016-11-02T00:00:00","date_gmt":"2016-11-02T00:00:00","guid":{"rendered":"http:\/\/otava.test\/control-vs-consumption-based-it-operational-models\/"},"modified":"2016-11-02T00:00:00","modified_gmt":"2016-11-02T00:00:00","slug":"control-vs-consumption-based-it-operational-models","status":"publish","type":"post","link":"https:\/\/www.otava.com\/blog\/control-vs-consumption-based-it-operational-models\/","title":{"rendered":"Control vs consumption based IT operational models\u00a0"},"content":{"rendered":"<p><em><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-16951\" src=\"https:\/\/otava.test\/wp-content\/uploads\/2019\/04\/technology-old-new_67205049.jpg\" alt=\"Control vs Consumption-based IT model\" width=\"350\" height=\"298\" \/>Note: This is the second in a series on Shadow IT. In this post, we\u2019re talking about the differences in IT operational models that could lead to Shadow IT in businesses.<\/em><\/p>\n<p>The way things are now, IT\u2019s speed of change is unable to meet its business\u2019s speed of need, which leads to <a href=\"https:\/\/otavawebsite.wpengine.com\/blog\/what-is-shadow-it\/\" target=\"_blank\" rel=\"noopener noreferrer\">Shadow IT<\/a>. Why? Because IT has traditionally been a control-based model, whereas a line of business is adapting and\/or moving to a consumption-based model. Let\u2019s review how each model works.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Control-based_model\"><\/span>Control-based model:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This is the model where the IT department is incentivized and directed to exercise control over the infrastructure, network, etc. Traditional technology departments have been furthered saddled with compliance and governance, and while it\u2019s debatable whether they should have been given that burden, the fact is, they have it now.<\/p>\n<p>Some challenges to the control-based model:<\/p>\n<ul>\n<li><strong>Wrong focus<\/strong>: Rather than listening to the customer, control-based models focus on governance and compliance: When you have to worry whether your systems are compliant with certain laws and regulations, it\u2019s hard to remember what your customer wants.<\/li>\n<li><strong>Slow<\/strong>: Control-based models are notoriously slow. Control-based systems focus on building a series of gates to ensure compliance. This is a bolt-on approach that involves procurement, approval, design, implementation, etc. By the end of it, the customer could have found a ready-made application and moved forward with it immediately. What\u2019s the point of having control over the infrastructure if no one\u2019s using it?<\/li>\n<li><strong>Security, compliance problems<\/strong>: When IT doesn\u2019t know what\u2019s happening in its infrastructure, there\u2019s a major risk of a security breach or compliance violation.<\/li>\n<li><strong>High overhead<\/strong>: Again, it all points back to the availability and increase in demand of the technology. I\u2019m sure many IT departments can relate to the Genie in <a href=\"https:\/\/www.youtube.com\/watch?v=sccU4xjPmtY\" target=\"_blank\" rel=\"noopener noreferrer\">Aladdin<\/a>, when asked what he would wish for. It sounds pretty nice not to have to go, \u201cPoof, what do you need? Poof, what do you need? Poof, what do you need?\u201d<\/li>\n<li><strong>Communication problems<\/strong>: Again, this is because there isn\u2019t focus on the customer. No matter the situation, communication breaks down when one of the parties isn\u2019t listening.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Consumption-based_model\"><\/span>Consumption-based model:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Now let\u2019s talk about consumption-based model. It\u2019s the newer model that views technology as a set of services, taking each of IT\u2019s disciplines (software, infrastructure, disaster recovery, backup, etc.) and turning them into consumable, on demand, services. With the wealth of companies popping up to offer IT services in one way or another, internal IT departments are being taken out of the equation, and the consumer is being marketed to directly\u2014and rather effectively.<\/p>\n<p>What makes a consumption-based model better?<\/p>\n<ul>\n<li><strong>Puts the focus on the customer<\/strong>: A consumption-based model proves you can listen to your customers and compete directly with the outside market.<\/li>\n<li><strong>Compliance and security baked in, rather than stapled on<\/strong>: When a major part of your job is already done for you, it makes your life that much easier.<\/li>\n<li><strong>Extremely flexible, and built to be scalable<\/strong>: Consumption allows you to consume by the sip to test your model, and then scale as you need, when you need.<\/li>\n<li><strong>Faster, more efficient<\/strong>: With everything on demand, there is no choice but to increase the speed of need. When you can provide your customers the resources they need, when they need them, you automatically become more efficient.<\/li>\n<li><strong>Easier to show chargebacks<\/strong>: With a consumption-based model, you can see which department is using which resources, how much, and when.<\/li>\n<\/ul>\n<p>Honestly, it is really difficult to make the change from old model to new. Aligning one department\u2019s priorities with another is never easy, no matter how small or large your organization. But doing so makes you as an IT department no longer a cost center, but rather a partner actively invested in the business\u2019s success.<\/p>\n<p>There\u2019s evidence that the control-based way of delivering technology is dying. IT budgets are flat or growing significantly slower, while at the same time, security, governance and compliance requirements are inflating. If you\u2019re not actively moving to a consumption-based model, you\u2019re hurting your organization. Don\u2019t be that organization! The slower you are to adapt, the slower everyone else will be to adopt, and the more trouble you\u2019ll have down the road.<\/p>\n<p>If you\u2019re trying to get a grip on your shadow IT problem, <a href=\"https:\/\/www.onlinetech.com\" target=\"_blank\" rel=\"noopener noreferrer\">Online Tech<\/a> can help. We understand what it\u2019s like to fight Shadow IT, and we\u2019ve designed our services to be of most benefit to large organizations that would see the most benefit. <a href=\"https:\/\/otavawebsite.wpengine.com\/contact\/\" target=\"_blank\" rel=\"noopener noreferrer\">Contact us<\/a> if you\u2019d like to learn more about how we can help you fight shadow IT.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Note: This is the second in a series on Shadow IT. In this post, we\u2019re talking about the differences in IT operational models that could lead to Shadow IT in businesses. The way things are now, IT\u2019s speed of change is unable to meet its business\u2019s speed of need, which leads to Shadow IT. Why? Because IT has traditionally been a control-based model, whereas a line of business is adapting and\/or moving to a consumption-based model. Let\u2019s review how each model works. Control-based model: This is the model where the IT department is incentivized and directed to exercise control over the infrastructure, network, etc. Traditional technology departments have been furthered saddled with compliance and governance, and while it\u2019s debatable whether they should have been given that burden, the fact is, they have it now. Some challenges to the control-based model: Wrong focus: Rather than listening to the customer, control-based models focus on governance and compliance: When you have to worry whether your systems are compliant with certain laws and regulations, it\u2019s hard to remember what your customer wants. Slow: Control-based models are notoriously slow. Control-based systems focus on building a series of gates to ensure compliance. This is a bolt-on&#8230;<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"other_category":[],"class_list":["post-3162","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Control vs consumption based IT operational models\u00a0 | OTAVA<\/title>\n<meta name=\"description\" content=\"In this post, we\u2019ll discuss the differencesbetween control versus consumption based IT operational models that may lead to Shadow IT.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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