SaaS for ITSM: Getting Past The Hype

I recently recorded a SaaS-related on-demand webinar with Patrick Bolger of Hornbill and as with my recent blog on service catalog with ServiceNow it seemed an easy opportunity to turn some of my slides into a quick-and-dirty blog (aren’t they all?).

Much has been said about the benefits of “SaaS for IT service management (ITSM)” …

For many organizations, the key benefit of SaaS is its simple, subscription-based pricing model that provides a lower and consistent level of expenditure which is Opex rather than a Capex investment – highly suited to those organizations wishing to invest limited Capex into business innovation projects rather than into IT. I deliberately haven’t stated that SaaS is cheaper as “it depends” ... Many tools have a “breakeven point” in the three to four year timeframe where SaaS becomes more expensive to customers than on-premises.

This simplicity of pricing can also be viewed from a value-for-money perspective, in that a per-seat subscription will usually cover access to capabilities across multiple ITIL (or ITSM) processes rather than the traditional need for organizations to buy multiple licenses across multiple ITSM products (or modules), giving an organization the freedom to increase its ITSM maturity without extra cost (unless additional people need access to the solution).

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