Following our previous blog on the first part of the “What If” campaign with excerpts from our new white paper, “Run Better: Technology That Will Drive Tomorrow’s Transformation,” we would like to share the next portion dedicated to cloud computing. Again, the purpose of this white paper is to call attention to emerging enterprise technologies helping businesses to Run Better. These cost-effective technologies can help companies of any size, and in every industry.
Cloud Computing – The Issue: High Technology Costs Of Staying Competitive In a Global Market
To compete on a global scale, today’s businesses — regardless of size — need advanced enterprise technology capabilities to enable innovation, transform core processes for greater efficiency, and manage transactions and partnerships more effectively. Beyond the significant upfront investment in hardware, systems, and implementation support, they also need the expertise to maintain those systems, ensure performance and access, and the ability to deploy the latest upgrades and enhancements.
But for many businesses, implementing, monitoring, and maintaining a state-of-the-art enterprise environment completely in house is prohibitively expensive—especially considering that demand for processing power, memory utilization, and disk space utilization can fluctuate dramatically over the course of a business cycle. In other words, many businesses need access to state-of-the-art enterprise technology capabilities, but investing in the required systems, hardware, and personnel based on the highest—and often infrequent—anticipated need doesn’t make sense economically. A business will inevitably have unused capacity and idle resources during slower, lower use periods.
At the same time, enterprise systems have become such an essential component of business success that companies need the assurance of anytime/anywhere access and high performance. Any gaps in service and access can create the kind of operational delays and supply chain interruptions that ultimately cost the business market share and credibility with its clients.
The Run Better Solution: Cloud Computing’s Pay-as-You-Go Approach
Cloud computing marks a revolutionary shift in the way companies use and pay for mission-critical enterprise systems and capabilities. Instead of investing in and maintaining the needed hardware, software, and expertise in house, a company can opt for a “pay as you go” model. In this scenario, businesses rely on a trusted partnership with a provider who manages and maintains the enterprise environment for them–including the hardware, enhancements, upgrades, security, and disaster recovery planning. More businesses are turning to this type of cloud-based strategy for their enterprise systems because it offers significant advantages.
A More Affordable Approach to Advanced Capabilities
Cloud-based enterprise solutions can level the competitive playing field, giving small and mid-sized businesses the advanced capabilities via a more manageable cost structure. The cloud approach offloads the responsibility for monitoring and maintaining system performance and continual upgrades in hardware and software from an often constrained set of IT resources. It also eliminates the hurdle of a significant up-front investment, while creating greater ongoing predictability in IT costs.
A Flexible When Needed/As Needed Model for Access to IT Resources
With services delivered via the cloud, a company can better manage the spikes in demand for enterprise application resources. Instead of planning – and paying – for periods of highest demand, businesses can access the precise level of service and support it needs, when the need arises. Conversely, when demand for resources wanes, a company isn’t forced into maintaining them unnecessarily. With the traditional in-house paradigm, it is difficult to scale computing resources and staffing up and down to meet varying demand levels.
Guaranteed Availability, Performance, and Access
When guaranteed application availability and performance are essential priorities, the cloud model also offers an effective risk management strategy for businesses. Instead of dramatically increasing its IT spend to ensure the needed performance, access, and availability, businesses opting for a cloud-based approach to enterprise applications purchase Service Level Agreements (SLAs) that provide guaranteed levels of performance and access.
The itelligence Perspective: Cloud Success Depends On Provider Expertise
The successful execution of a cloud-based strategy ultimately depends on the experience and expertise of the provider the business partners with. itelligence uniquely combines premium data center hardware, systems, and expertise with SAP application expertise and senior level resources. This combination drives a significantly higher ROI, delivering the guaranteed access, performance, and maintenance services that help businesses realize more value from their enterprise applications. itelligence enables organizations to be more flexible in their IT spend and redeploy IT resources and personnel to high-priority, strategic projects while providing state-of-the-art support and service of SAP environments.
Feel free to share comments, suggestions or questions. We want to continue conversations on how we can help our customers find the best ways to Run Better.