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02 Jun 2017

How the cloud is releasing cash trapped in legacy IT

Over recent years, rising market competition has meant that companies are increasingly concerned about optimizing their products and services, and cutting down on basic operational expenses.

A clear example can be seen in process automation and robotization. These technologies present major opportunities for businesses wishing to maintain a competitive edge in today's global market. While this trend is not so beneficial from an employee's perspective and will entail legislative hurdles, modern IT and automation will keep on supplanting standard business operation models and opposing it makes little sense.

Cloud as a priority

Companies are also immensely interested in cloud computing services for the high levels of flexibility, from both a technological and price perspective.

Cloud means that there is no need to continuously pay for resources that are not needed

IT systems purchased for dedicated business solutions are usually expensive: In addition to costly investments in hardware and third-party licences, businesses also need a competent IT team to manage and operate the solutions. Cloud computing services can now address this problem.

Cloud and the related scalability concept of ?pay as you grow', is allowing customers to lease computing power depending on their needs at any given time, rather than being pressured to secure computing power from the start. Instead, enterprises may scale up their computing power assets, if only for a couple of days to handle peaks and special requests.

Cloud means that there is no need to continuously pay for resources that are not needed. This is the future for businesses looking to optimize their expenditure and commit more to their core business without freezing cash in unnecessary IT resources.

Finding the right support

Whatever the optimized model, somebody has to manage the services and ensure reliable operation and 24/7 access, and IT teams are expensive and need on-going training to grow.

As businesses need to focus on their core objectives, seeking reliable IT partners can be an effective solution to the problem. Specialized services can provide higher-quality solutions at a more cost-efficient price, compared to in-house setups.

When looking for a credible partner, companies need to consider whether their ICT services can be outsourced in the first place, and weigh up the related costs and SLAs involved. It is also important to understand what the cost of service unavailability is to the business.

Some business may be ready to build their own ICT team and infrastructure, while for others having an internal server room and data centre, along with the continuous investments and IT upgrades, is a price too high to afford.

After analysing these factors, businesses should be able to make strategic decisions about the direction their IT should take. While these are difficult strategic choices, they will provide a competitive edge and are critical for the future of the business.

Source Credit: https://thestack.com/cloud/2017/06/02/how-the-cloud-is-releasing-cash-trapped-in-legacy-it/

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