cost consumption model of technology and the shift occurring in cloud era
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Cost Consumption Model of Technology and
the Shift Occurring in Cloud Era
Technology is ever
evolving so how can
an organization stay
on top of the changes
and on the cutting
edge while controlling
or even reducing
capital outlay? The
answer is Cloud
technology. Why?
Because Cloud helps to shift the way organizations “consume” technology
from Capex outlay to Opex pay-for-use services. With Cloud in their arsenal,
organizations can achieve better customer service levels and faster time to
market.
There are several pros and cons of Cloud technology, but more often than not,
the benefits outweigh the risks.
Benefits
Change the cost structure to Opex pay-as-you-use service vs. undertake heavy Capex
costs to acquire technology
Reduce concerns with DR since this is now the Cloud providers responsibility
Offload tier 2 and 3 applications which are not mission critical to the enterprise,
allowing efforts to focus on driving revenue vs. maintaining an environment
80 / 20 rule now becomes 20 / 80 rule (20% break fix support and 80% is now driving
technology changes which impact revenue streams)
Track technology costs by department and budget more effectively
Scalability
Risks
Security (you must choose a trustworthy provider who upholds meeting PCI, HIPAA
and other regulatory compliance measures)
Job Security (If you have this mindset it is important to understand Cloud allows you
to drive revenue by not wasting efforts performing break-fix tasks on non-critical
applications)
Cost of doing nothing will only provide slower adaptation capabilities and negatively
impact revenue streams
Understanding & differentiating which applications & compute requirements are a
good fit for the Cloud
Of course, there will always be other considerations the C-level and
Technology Managers must be proactively thinking about… Cloud whether
hosted, hybrid or a private solution provides increased nimbleness to
organizations, as well as quicker adaptation and redundancy infrastructure
within SaaS, PoD Architecture and IaaS environments.
I invite you to contact me at [email protected] if you would like to
discuss further how moving to the Cloud can help your business radically
improve customer service levels.