Closing the Door on Traditional ITSun Inner Circle — June 2008: Sun Starts Closing the Door on Traditional IT: "Perhaps it's the idea of sharing software services with other companies that makes many IT people nervous, even though cost reductions make people paying the bill sigh with relief. In a services model, organizations can pay only for the services they need for a specific number of employees (as in the payroll example). Most enterprises today build applications as though every employee will use them, which usually results in the company spending vast amounts of time and money creating very large systems and applications.
The setup costs for building services in-house aren't the only expenses. Most organizations end up using more computing and electrical power than needed for massive applications that not everyone uses. This makes as much sense as turning on every light in the house when you plan to read a book in the living room.
Subscribing to a multi-tenant IT services provider can increase an organization's flexibility and resiliency. In most IT shops, if the CIO needs to grow services quickly, the most immediate challenge is figuring out ways to acquire more server and storage capacity. This is followed by wondering how to justify the cost of burdening the datacenter further.
In the meantime, employees wait for the services they need. But with the subscription model, employees can remain productive. One of the goals of Sun's new services model is to get to the point where managers order the right services for employees from a list of vendors, rather than ringing up IT for provisioning."