Benefits and challenges of sourcing on-demand technology

English words utility computing (in Spanish the equivalent will be calculated on request) refers to the provision of technological resourcesThis is the case with data processing and storage in the cloud as a paid service, similar to traditional public infrastructure (such as electricity, water, natural gas or telephone).

By acquiring technology as needed, organizations gain smarter management capabilities that enable them to adapt to changing market needs.

With this model, the service provider can enter organizations computing and storage capacity, Encourage process optimization because you don’t have to buy, upgrade, or manage equipment, or take up space in your facility.

In addition to storage, utility computing, or on-demand computing, vendors offer access to certain software that is paid per use, not through a fixed or flat rate, according to Icusi.

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Acquiring technology on-demand brings several benefits to organizations:

  • no redundancyOn-demand computing eliminates data redundancy as data volumes are spread across multiple backend systems or servers.
  • workload management: This service model provides the ability to easily reduce or increase computing resources.
  • custom payment: Changes the cost model of IT services to pay as you use them and allows you to track billing as you pay.
  • immediate profitabilityFinancial Outcomes: The financial outcomes of this model help the company achieve business goals as profitability is achieved immediately.


While the benefits of on-demand technology are remarkable, there are still many challenges that businesses and individuals face in the near term. Both aim to adopt this technology as one of the great enablers of digital transformation. Cesar Gabriel Queiroz Castaneda, CIO of Grupo Custo, lists the following:

  • Data security and data protection: In the specific case of the cloud, there are many concerns about how far its security goes. The truth is that you have to understand two things. Security is one thing that is evaluated when choosing the cloud service you want to hire and another that in some cases security is shared between the provider and the person who hires the service and hence it is necessary to read the contract. In addition, there are also private cloud services where the person responsible for cloud management resides in the IT department.
  • Communication network: Undoubtedly, the network that connects data centers with customers and users via the Internet is a fundamental part of the value chain of the services offered. The truth is that better bandwidth is needed in the network.
  • Change of ICT industry: As Chief Information Officers (CIOs) understand that their new role is not to manage infrastructure or build applications, but to create value for their organizations, adoption of the new model will accelerate.

There are still challenges with this new way of working; However, “as a service” technologies have revolutionized the world as we used to see it and certainly accelerated the process of digital transformation of companies.

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