Thu Sep 19 15:07:00 UTC 2024: ## On-Premises As-a-Service: The Cloud Model Takes Root In-House

**New research from TechTarget’s Enterprise Strategy Group suggests that the adoption of on-premises as-a-service (OPaaS) is rapidly accelerating, as organizations seek to extend the benefits of the cloud model to their existing infrastructure.**

Traditionally, businesses had to choose between buying or leasing their IT infrastructure or outsourcing to a third party. The rise of the public cloud model revolutionized this approach, allowing organizations to access computing power and storage on demand. However, while public cloud adoption has soared, a significant portion of applications still run on premises.

This has led to a growing interest in OPaaS, which enables organizations to deploy infrastructure on-premises, managed by a third party on a cloud-like, metered basis. TechTarget’s research indicates a strong appetite for this model, with only 20% of IT organizations wanting to handle hardware procurement and management themselves. The majority prefer flexible consumption models, with nearly half opting for third-party management.

**The appeal of OPaaS lies in its ability to deliver a cloud-like experience for on-premises workloads, offering both pay-as-you-go pricing and faster access to cutting-edge technologies.** This is particularly relevant for emerging areas like AI, where upfront costs can be substantial.

**This shift towards OPaaS is driven by both demand and supply.** TechTarget’s research finds that 90% of organizations report their IT environment has become more complex in recent years, making it difficult to manage on-premises infrastructure effectively. At the same time, nearly all infrastructure providers are now offering OPaaS solutions, signifying a growing supply-side commitment to the model.

While the traditional Capex model remains suitable for stable applications, OPaaS offers a compelling alternative for emerging or unpredictable applications. This model allows organizations to embrace innovation and minimize risk, making it a key factor in shaping the future of on-premises infrastructure.

**The on-premises as-a-service model is poised for continued growth, offering a flexible and cost-effective way for organizations to manage their IT infrastructure in the cloud era.**

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