Why this matters
Across industries, organizations aim for more control over the enterprise IT they use and how they pay for it — and that demand has been met by a shift to service-based delivery models for providing products, capabilities and tools. To obtain a cross-industry view of how organizations are adopting and benefitting from as-a-service enterprise IT, Deloitte conducted the “Everything-as-a-Service (XaaS) Study,” 2021 edition, surveying 600 IT and line-of-business (LoB) professionals from U.S.-based companies in Q4 2020, during the COVID-19 pandemic.
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The survey found that the transition from traditional IT to XaaS — already well underway in 2018 — continues to transform the enterprise IT landscape, with the COVID-19 pandemic accelerating this transition. Leaders report that on average, their organizations are spending $20 million on XaaS in the current fiscal year with the overwhelming majority (69%) planning to increase investment in the next fiscal year, by an average of 23%.
COVID-19 accelerates shift to XaaS
The COVID-19 pandemic intensified the urgency for companies to adapt and become nimbler. This reality also demonstrated the value of XaaS, and accelerated the move away from traditional IT:
1. Eight in 10 adopters agree the pandemic has accelerated their organization’s shift to XaaS.
2. Fifty-five percent report the crisis is causing their organization to invest more in XaaS than previously planned.
3. Eighty-six percent believe XaaS is critical to strengthening their organization’s response to business/workforce challenges caused by the pandemic (46% strongly agree).
4. Eighty-eight percent believe XaaS will be crucial as their organization recovers from the pandemic (43% strongly agree).
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Key quote
“The COVID-19 pandemic shined a bright spotlight on the importance of IT in maintaining business continuity. It also revealed the urgent need for companies to be nimbler and more adaptive to the ever-changing IT needs of users. This experience demonstrated the real value of XaaS and the cloud, and a shift away from a reliance on traditional legacy IT. Expect this trend to have staying power as the advantage of service-based technologies — and some of the associated behaviors— continue to provide measurable benefits and enable enterprises to compete more effectively.”
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