By Dell Technologies A / NZ Senior CTO, Adrian Iannessa.
Over the past 18 months, technology has enabled companies to adapt to rapidly changing market conditions, innovate and grow.
However, as businesses adopt new solutions, businesses also face the challenge of the increasing complexity of outdated infrastructure and processes.
Research reveals that CEOs and CEOs in Australia and New Zealand are having issues with their existing procurement IT infrastructure models and management tools.
Almost all executives surveyed (97%) said traditional infrastructure procurement models stood in the way of change, citing issues such as high upfront and ongoing costs, limited control over infrastructure, and complex infrastructure requirements. management and storage.
To meet these challenges, organizations are increasingly adopting an âall-as-a-serviceâ IT approach. With 62% planning to increase their storage and compute spending over the next year, many are considering Infrastructure-as-a-Service (IaaS) provisioning models as a starting point.
The benefits of an IaaS model are clear: improved software, hardware, and support, and reduced capacity costs, along with the ability to align costs with infrastructure and improve business results.
Here are four key benefits of moving to a model as a service.
# 1 Smart innovation to save capital
Since the onset of the pandemic, businesses have had to quickly and drastically overhaul their budgets, and many have had to cut overall spending. When a business can use IT on an as-needed basis through a model as a service, it’s easier to track which projects are performing or not performing according to plan. In turn, this helps companies know where and where not to commit additional funds.
For example, a tech company investing in AI will reap major benefits. With many projects in the pipeline, funding is a blind challenge on which to operate successfully. If project CapExs have not been approved during the annual budget planning period, they must go through an approval process with the CFO. This process is often slow and painful with uncertain results.
With a model as a service, the business can more easily approve expenses for successful projects without justifying a large capital expenditure.
# 2 get more data access at the edge
From digital healthcare in hospitals to smart manufacturing, edge deployments are incredibly diverse and increasingly common. Forecasts show that by 2025, 75% of enterprise-generated data will be created and processed at the edge, outside of a traditional, centralized data center or cloud.
An as-a-service approach removes the limitations of edge deployments. Businesses that find value in the data they access outside of their data centers are also trying to figure out how to get the most from it. With service-as-a-service, businesses can place their infrastructure where they gain the most value and use only the resources they need.
For railways, maintenance is essential to keep trains running. If a train is delayed for repairs, it probably has to wait until the other trains have finished using the tracks before continuing on its journey, which has a cascading effect on profitability. Maintenance has a significant impact on delivery times, customer satisfaction and costs.
Shifting to a model as a service, a railway company built trackside locations that visually inspect cars in real time as they pass through monitoring stations along the tracks. As a result, they reduced the inspection time from 16 hours to eight minutes without the train needing to stop.
# 3 Paid resources make it easier to manage usage
It is common for businesses to have workload variability. For example, some workloads will follow a daily work schedule like Virtual Office Infrastructure (VDI), HR systems, and Identity Access and Management systems, which are primarily used during employee working hours. . On the other hand, log processing tends to happen at night when employees are offline.
Another variable workload is cyclic usage, where systems recognize trends around weekly, monthly, or annual cycles. For example, accounting and sales systems have heavy loads at the end of each month, quarter and fiscal year. These workloads can be heavily utilized, straining resources during their critical cycle time.
In both cases, the average usage is often much lower than ideal. Adopting an as-a-service model and paying only for the resources used allows you to run variable workloads more efficiently and optimize the use of infrastructure and storage.
For 98% of business leaders, managing and provisioning storage costs does not currently match usage, as organizations tend to estimate storage volume based on trends in data growth. IaaS offers the ability to more closely align costs with usage, taking the guesswork out of planning and the risk of getting it wrong.
# 4 When IT is agile, so is the business
IT teams are no strangers to the âdo more with lessâ game. This can be painful for teams who spend precious resources just to keep systems operational. Managed Services help IT free up resources to innovate and work on new projects that benefit customers, such as improving SLAs and increasing SLOs.
With IaaS, IT can minimize the impact on the environment, which means teams don’t have to worry about decommissioning old hardware because the service provider owns the hardware.
The ability to accurately map IT resources to projects eliminates much of the necessary routine IT work experiences and makes it easier to scale teams. Companies are increasingly looking to expand adoption as a service to focus on what matters most to their business: delivering business results and value to customers.
It is safe to say that the model as a service is the future of modern business. IT and business managers are almost unanimous in finding IT sourcing and management a source of heartache, even when using the public cloud.
If the IT infrastructure is slow to procure or inflexible, the time to value of projects is directly affected. It’s no surprise that one in three CEOs are the ones calling for a move to an IaaS model in A / NZ organizations, with executives also recognizing that a model as a service opens doors for developing new products, achieve digital transformation and be more innovative.
We will continue to see increased adoption of IaaS in business strategies over the next decade as companies identify opportunities for innovation in their businesses.