October 22, 2020
Our final blog in this series on the importance of operational continuity and scenarios organizations must avoid addresses expanding IT costs. There are countless possible examples to discuss, but we’ll focus on the typical costs and efforts associated with ongoing maintenance and management of on-premise applications.
In addition to the pressure to innovate and integrate new solutions to the enterprise ecosystem, many on-premise implementations are blessed/cursed with modifications to address unique requirements. These mods, along with regular upgrades and updates, need to be scheduled and managed. IDG reports that the top two priorities for CIOs in 2020 are investments in additional security and analytics. This list not only represents a fraction of day-to-day expectations of current IT staff but also expanding costs to the organization.
When comparing the operating expense of a cloud solution to the capital expense of an on-premise solution, there’s a much stronger argument for the total cost of ownership (TCO) associated with cloud solutions. Organizations that may have wanted to defer on this option in the past may wish to take another look at evaluating your cloud migration options to see if now is the right time to make the move.
In moving to the cloud, one of our customers, Pilot Flying J, consolidated 25 disparate IT applications, which reduced time-consuming, expensive maintenance, and updates to ultimately save $1 million annually.
According to Constellation Research, one of the ways cloud-based software provides big wins to customers is through the ability to receive rapid innovation at scale. While there’s a knowable direct saving associated with the shift from on-premise to cloud, there are also many additional benefits available on a continual basis as enhancements are automatically delivered.
If you find the themes covered in this blog post relevant to your business, we invite you to download this best practice guide on how to avoid business-damaging scenarios caused by outdated IT systems.
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