Why Your Organization Should Leave the IT Hardware Business

DSM Hardware exit

20 years ago, buying a new server or storage unit was a huge deal. They were expensive, powerful, and required in all IT shops. Often, they performed a single function which made sizing them correctly a very important step in the process. And back then, IT budgets were classified as a necessary evil, with most of that budget focused solely on hardware and large capital purchases.

Download: 7 Key Business Drivers for Assessing Your IT Environment

Fast forward to the present, servers have decreased in price and increased in capability. Datacenters have been virtualized and can compress tens, if not hundreds, of workloads onto physical systems that used to house a single workload. Over the years this has led many in operations to just expect enough server capacity to be there (and if it isn’t, the challenge with making that happen quickly is frustrating).

Additionally, the increase in compute and storage density has led many IT professionals to now think of these machines as a commodity purchase; and commodities aren’t typically thought of as exciting. This leaves the IT team member responsible for the servers, feeling like their time spent designing, procuring, and installing is wasted.

Now, with IT departments being thought of more and more as a profit center, their time is being spent on things like application design and internal process improvement. You can’t make these important aspects of IT become a reality if you are constantly stuck maintaining a hardware lifecycle, dealing with vendors and purchasing departments, and spending time monitoring and replacing hardware.

This leads many IT leaders to the path of exiting the “hardware business” and letting dedicated infrastructure providers step in and manage that aspect of IT. This gives the team back their time, and provides them with a flexible pool of hardware from which to pull in and out of when needed.  The expensive process (both in time and dollars) of maintaining, backing up, restoring, and upgrading this hardware goes away when a predictable cloud provider is used. 

Benefits of the Cloud

The cloud transforms IT from a capital expense (CapEx) to an operating expense (OpEx). Your provider will take care of hardware and its management, so you don’t have to make large investments in equipment and the real estate to house it. IT capital expenditures are hardly a one-and-done; there’s the ongoing cost of equipment repair and replacement, large upfront costs when equipment is needed to scale up, and of course software upgrades. Also, with a CAPEX, you need to account for depreciation—not so with OPEX. With the cloud, it’s taken care of for you. There’s also no need to purchase expensive software and pay pricey licensing fees.

You pay a set amount, and receive a specific service; it’s that simple. But the benefits don’t end there. OPEX also makes growth easier. Need more storage? Simply increase capacity with your current vendor. Gone are the days of vetting vendors or products, waiting on approvals, and waiting through a lengthy implementation process.

Additionally, by moving out of the hardware business and into the cloud, you can expect to see the following benefits:

  1. Pay-As-You-Go: You pay only for what you use, much like a utility.
  2. Economies of Scale: Resources can be shared, meaning costs can be spread out across each organization.
  3. Increased Productivity: Software in the cloud generally performs faster.
  4. Increased Collaboration: The cloud gives employees access to files and documents from anywhere with an internet connection.
  5. Lower Utility Costs: Costs can vary but there are potential savings achieved due to lowered electricity usage.
  6. Less Risk of Disaster: A predictable cloud provider will keep your data safe from disasters by providing secure facilities, and backups for your data.
  7. Greater Competitive Advantage: The cloud enables small and medium-sized organizations to be more agile and compete easier with large organizations.

Considering leaving hardware behind and making a move to the cloud? DSM, Florida’s predictable cloud provider, can easily and seamlessly migrate your data. Our cloud offerings are designed for business, healthcare, and government, meeting compliance standards and exceeding industry standards for uptime and recovery. Interested in learning more? Speak with one of our IT experts today. 

Repatriating Workloads Back to On-Premise | DSM eBook

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