IT as a service (ITaaS) is an operational model where the IT organization of an enterprise is run much like business, acting and operating as a distinct business entity creating Products (including services) for the other Line of Business (LOB) organizations within the enterprise. At its core, ITaaS is a competitive business model where an enterprise IT organization views the LOBs as having many options for IT services and the IT organization has to compete against those other options in order to be the provider to the needs of the LOBs. Options for providers other than the internal IT organization may include outsourcing companies and public cloud providers.
Under an ITaaS model, the internal IT organization of an enterprise will have a business-centric focus. It will place great emphasis on the needs and the outcomes required by the LOBs. The benefits to the enterprise sought by using the ITaaS model include the standardization and simplification of products delivered by IT, improved financial transparency and more direct association of costs to consumption, and increased IT operational efficiency resulting from the need to compare the price of internally produced products to those available from external providers.
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