Cloud goes beyond cost control

May 24, 2016 12:51:26 AM

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Cost control is one of several cloud benefits to plan for

When you talk with colleagues and others about the cloud, you may encounter extreme views that may regard the cloud as a company’s ruin or its salvation, often based on limited experience. As you communicate and develop a cloud strategy that works for you, it’s always good to learn about everybody’s mind sets and expectations. Not everybody shares the same definition of what the cloud is, and some responses to it may be based on misconceptions. You may be able to avoid some needless disagreements by keeping the conversation closely connected to your business goals and to the practicalities of what cloud services can and cannot help you accomplish.

A number of common cloud misconceptions are highly popular and still current, partly because they were more factual in times past. It’s worth it to review and correct them now, because the cloud and its capabilities are growing fast and becoming more strategic for many more businesses. You don’t want consequential decisions marred by errors.

Cloud legend #1: The cloud is all about saving money

When you move to the cloud, you can take advantage of existing infrastructures, data management services, and security protocols. You do not need to acquire servers or storage and networking equipment, or add capacity to your data center. These resources are ready for you in the cloud. All you pay is a manageable fee based on your utilization of the service provider’s offerings.

On average, when you move into cloud technology, the costs of cloud computing services themselves amount to 68 percent of the overall cost, with fees for implementations, customizations, training, and support making up the remainder. For on-premise business software, the initial software licenses average just 9 percent of the total costs. Implementation, customization, IT staff, hardware, training, and maintenance account for the rest. Ongoing costs result from upgrades, fixes and patches, adjusting customizations and integrations, user support, and other tasks.

It’s certainly possible, even likely, that moving to the cloud will reduce your expenses. But it’s not useful to make that assumption without doing the research to verify it. Use the total cost of ownership in making cost comparisons. Take the time to model how the switch from capital expenditures of on-premise software to the operational expenses of cloud technology plays out over time.

You also should look outside of the immediate cost control issues associated with bringing technology into your business to the wider impacts and differences in cloud and on-premise technologies. Some cloud benefits offer a mix of better economy, improved efficiencies, and the high probability of realizing desirable business outcomes sooner and easier. For instance:

- Your applications and databases in the cloud can quickly scale to accommodate dramatic increases in transactions and events in a way that on-premise technology cannot.

- Analytics applied to cloud data can provide the agility to respond to problems, threats, and opportunities immediately with practical approaches that address company and customer needs.

- In the cloud, you can change processes, rules, accountabilities, data management practices, and other conditions rapidly and with great efficiency.

- When you acquire a company, you can seamlessly and without any delays extend cloud resources and solutions to the new business groups.

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If you would like to talk, or have questions and feedback, please get in touch. Get in touch with me or contact To-Increase.

 

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About Author
Luciano Cunha

Luciano Cunha

Chief Executive Officer (CEO) For Luciano, being responsible for To-Increase’s global sales and marketing means unleashing the company’s insight, innovation, and creativity to tell our story and help customers achieve their goals. On the road much of the time, he travels the world to meet with customers, understand their challenges and ambitions, and find the most effective ways to help them advance. Luciano develops and mentors our marketing and sales team, and creates strategies to help the To-Increase worldwide partner channel thrive and grow.
Making Customer Needs the Main Business Driver Luciano and his team have daily conversations with the To-Increase research and development organization to bring customers’ requirements and concerns into the road maps and design of our solutions. Luciano brings his insight to the marketing group to make sure the company’s communications resonate with customers and speak directly to their experience.
“I’m awed by customers’ innovative spirit in taking business management technology past its limits and by their generosity in letting us participate and empower them. I hope to transform our organization to become even more customer-centric than we are today. That means making more resources available to spend productive time with both our customers and partners, so we can ensure that we place into customer businesses effective solutions that fit the evolutionary stage of their operation and the way their people and processes work.”
Empowering a Global Channel
Because To-Increase only sells through partners, readying the channel to be successful in helping customers is a business-critical effort. Luciano aims to meet partners where their interests are. Partners who consider the relationship with To-Increase strategic can rely on our industry specialists to work with them as they plan their growth and serve customers. If partners prefer a less collaborative relationship, they still receive the rich To-Increase expertise and resources to ensure they win the business, perform a successful deployment, and retain a satisfied customer. In working with partners and their customers, Luciano brings to bear his experience of many years of creating successful, customer-focused business development and marketing strategies in many of the world’s countries and regions.
Enabling Customer Success in Challenging Business Environments
Looking into the near future, Luciano expects that customers will continue to expect To-Increase to help them make business sense of unfolding trends and technologies. For example, the internet of things (IoT) will thoroughly revolutionize manufacturing, engineering, and supply chains. Big data will be meaningful and valuable when decision-makers can use technology solutions to transform it into actionable business intelligence that supports key roles and business processes. Mobility will help companies become digital enterprises and move business processes forward from any location, at any time. Team To-Increase harnesses innovation to help customers translate the promise of these technologies into business results.
Before his current role, Luciano for several years was one of To-Increase’s global industry directors, responsible for our industry solutions. His experience also spans more than 17 years in IT and manufacturing management roles. These positions took him into various areas at IBM Brazil, serving as product manager for several software development companies, and included working in senior management at a manufacturing organization in the U.S.
Luciano is married with two young children. Away from work, he enjoys participating in a soccer class together with his son and daughter as well as taking relaxing walks in natural environments with his family.

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