For many years, most organisations look at IT infrastructure spend as a required expense which should be minimised, and the ROI should be stretched over as many years as is safe without introducing undue risk to the business. Intuitively, you would think that spending 100k on infrastructure for 5 years would be more cost effective than 100k for 3 years. Well perhaps not, last year the International Data Corporation (IDC) found that by delaying upgrades to server infrastructure, organisations can lose up to 39% of peak performance, add up to 40% in application management costs, and up to 148% in server administration costs.
What does that truly mean to the business?
- Could technology problems lead to poor service delivery and cost you customers?
- Are your competitors doing something innovative with technology that you could be doing?
- Are your competitors more aware of the market and the data and moving faster than you because their systems allow them to?
- Are your staff frustrated due to regular problems, or shortcomings of your systems
Are these things impacting your profitability?
Newer research is emerging into the link between IT Transformation maturity and the profitability of organisations. A report by the Enterprise Strategy Group discusses this in detail and highlights three categories they use to measure an organisation’s IT Transformation maturity:
- Transformed business and IT relationships: Facilitated through a communication framework for regular outcome driven communication between IT and business stakeholders.
- Modernized data centre technology utilization: Examples cited include high performance flash arrays, flexible scale out architectures, converged and hyper converged platforms and flexible software-defined solutions across both networking and storage domains.
- Automated IT processes: Measured by the progress the organisation has made in terms of running IT more like a public cloud provider – e.g. enabling self-service infrastructure provisioning, rapid scalability, and usage-based tracking.
Don’t worry if your business is not doing many or all of these things, most aren’t! Forsythes Technology is using this research and others like it to shape our services for our customers and help businesses move through the stages of maturity.
Our private cloud platform, leverages modernised data centre technology including flash based storage arrays, scale out architectures, converged platforms and software defined solutions in networking and storage domain and our managed service offerings enable even small business clients to move up the maturity scale quickly by leveraging our automation processes, our framework for engaging with the business stakeholders.