Category Archives: NetEnrich Marketing

Best practices for getting started with Azure assessments

What is Microsoft Azure?

Microsoft Azure is a cloud computing service created by Microsoft for building, deploying, and managing applications and services through a global network of Microsoft-managed data centres.

How do you prepare for your migration to Microsoft Azure?

The saying about tailoring, Measure twice, cut once; holds true for migrations to Microsoft Azure too. Many pertinent decisions have to be made before you can rush through the migration. What are the workloads that will be adversely affected by internet latency, if the workloads you want to migrate are supported by the operating systems on Azure, the size of the workload you wish to migrate and many more such decisions need to be made.

Your goal to migrate might have been prompted by the promise of cost-efficacy, flexibility and accessibility or the ability to scale beyond your data centre’s limits easily. Make sure your plan is consistent with the goal you choose. And prepare after you plan!

Prepare a list of:

  • Physical and virtual computers available
  • Operating systems and versions on each of them
  • Software updates on each computer (information about service pack versions and other modifications)
  • The function of each computer, applications and programs on devices
  • The ownership and contact information of each device
  • The assets available and their relative value, to determine the priority in terms of attention and protection needed
  • Known security issues and procedures in place to identify new security issues or changes in security levels, if any
  • Countermeasures deployed to secure the environment
  • The workloads to be moved
  • The destination of the workloads
  • Processes required to ensure the workload is ready for migration

Cloud Assessments

ROI Assessment: Helps IT Executives quantitatively calculate long term ROI of Cloud (Including ROI for legacy applications that are more complex than Email and CRM).

Capacity Assessment: Provide a summary of current infrastructure storage and network metrics, along with alignment of on-premise infrastructure to cloud target resources with sizing for all components.

Backup Assessment: Provide a summary of backup requirements, along with recommendations for better backup and an understanding of the advantages of Azure Cloud Backup.

Application Assessment: Provides extensive discovery & assessment of client environments.

Cyber Security Assessment: Provides a benchmarked review of vulnerabilities against the OWASP (Open Web Application Security) top ten list, integrated with remediation and compliance management recommendations.

NetEnrich provides a comprehensive suite of services for assessment, setup, migration, and management of assets on Azure. Our services inlcude:

  • Backup
  • Disaster Recovery (ASR)
  • VM Instances
  • IaaS
  • PaaS
  • Business Application Workloads
  • Enterprise Mobility Suite (EMS)

NetEnrich’s automated Azure assessment services are delivered to tight deadlines, high SLAs, and unbeatable prices. End-clients and partners get 24×7 support for service requests, queries and visibility into the status and health of applications and workloads.

Partner MSPs and CSPs benefit from NetEnrich’s white-labelled IT infrastructure management services that are a combination of:

  • Comprehensive solutions for the hybrid cloud, along with the technology, processes, and remote operations scale that differentiate you in the market place and ensure you deliver superior value to end-clients, at all times.
  • Possibility of recurring and multiple revenue streams, as you break into new service lines and increase win rates.
  • Highly automated, industrialized services offerings that ensure up to 40% higher margins.
  • Single pane view and control of end-clients using NetEnrich solutions that are co-managed with you.
  • Accessibility to experienced technical and marketing collateral as part of partner enablement.

Outcome based self-service, the new reality – Are you reaping the benefits?

Change is the only constant, and business is all about keeping up with changing times. And real change doesn’t happen in discrete annual increments. It creeps up on you.  If you are an IT service provider – either within your organization or for your clients, your survival depends on your ability to adapt to this change.

Computing and network technology provided the initial impetus to outsourcing about two decades ago. And outsourcing itself changed the socio-economic demographics of a generation in India, Malaysia and several other South American and East European nations, across the globe. Rapidly changing technologies such as cloud computing, edge or fog computing, automation and disintermediation and changing global politico-economic environments are radically changing the face of the outsourcing business.

Companies are no longer willing to turn over the keys of their IT departments and be bound by multi-year contracts. They want self-service and cloud computing and SaaS to handle most of the work, instead of building or buying those capabilities. More flexible, multi-vendor strategies can give companies more control and less risk – as they swap providers as needed. This best-of-breed, functional outsourcing model is also cost effective and targeted to business needs, across networking and storage, application development and security. It helps IT departments quickly bridge the divide between older legacy technologies and the steady stream of new technologies, from cloud computing to IoT.

According to Markets and Markets, the managed services market is estimated to grow to $242.45 billion by 2021 and the global IT infrastructure monitoring market to $34.1 billion by 2024, signalling growing need for highly reliable and secure networks and systems.

Technology companies of all stripes want to grab a piece of the cloud, SaaS and data center markets. They engage with organizations through a self-services-based model, to help modernize their IT departments that need highly efficient and high-performing infrastructure to launch new business initiatives and drive growth. Companies don’t want to overcommit or purchase rigid, predefined custom services with binding, multi-year contracts for IT infrastructure, cloud computing, data center management, or security services.

If you don’t want to do it, you are not alone.  Here’s what’s driving self-service.

Cloud Computing and cloud based tools has changed how customers view their outsourcing needs. Both IT outsourcing and business process outsourcing need to change as a result. With more infrastructure capabilities, applications and software being delivered and managed through cloud, outsourcing will be more transaction based for services, with minimal commitments and high flexibility of services.

Automation & Disintermediation are changing the face of outsourcing. In some cases they are altogether doing away with the need for outsourcing – both IT and business process.  Sixty percent of airline call center work has been eliminated by providing services through self-service online systems (think of booking flights, selecting seats). Banking, Retail and Insurance provide more examples. As smart phone penetration and access to internet increase, coupled with IoT complemented by edge or fog computing, disintermediation is bound to make itself more evident.

The NetEnrich advantage for this new outcome based self-service encompass:

  • Vistara to centrally manage hybrid IT environments across public and private clouds and internal data centers
  • Support for all cloud providers – Google Cloud, Microsoft Azure, AWS and Open Stack, major networking, security and UC vendors
  • Industrialized service factory automation software, algorithms, tools, templates, and methodologies
  • Big data analytics, including use of Hadoop, Cassandra, etc. to enable high-quality decision making pertinent to the changing business environment
  • Intelligent routing of issues and incidents to the most optimal and lowest cost resources
  • Artificial intelligence and bot software to automate menial tasks and processes

NetEnrich is a company that has proven experience in infrastructure management and cloud services across verticals, and focuses squarely on simplifying the hybrid IT management challenge through smart automation and focused expertise.

NetEnrich brings industrialized, automated services and products, not costly, custom-made IT. We are singularly focused on helping IT service providers, both within an organization and for organizations, become outcome-based service providers to the business and drive market value from technology – not just data and uptime. We deliver expertise in networking, storage and security across cloud and on-premise environments, with NOC and SOC services for hybrid IT infrastructure, coupled with flexible  pricing.

Why should you use an MSP for your NOC?

At NetEnrich, we take IT Operations services to the next level to establish a high-value, turnkey managed IT service offering that drives meaningful results for you.

Choosing the right Network Operations Center (NOC) MSP, enables you to scale with lower cost and investment, than would be required to scale the business in a DIY scenario. MSPs can free up high-priced engineers to focus on more strategic projects and deliver solid value to clients, vs. fighting low-level fires and wasting time on technical tasks that do not provide a return for the cost of the engineer. And, last but not least, the right MSP can provide the ability to manage complex hybrid IT environments, drive high value around the automation of IT services, and offer greater predictability and consistency around SLAs.

NetEnrich Video Blog – Why should you use an MSP for your NOC?

In our latest video blog, we talk about how the NOC is a critical component of managing complicated internal IT systems. Utilizing a managed service provider (MSP) enables you to leverage their knowledge, while combining it with the expertise of your staff.

Watch this video to learn more:

NetEnrich Insights: Microsoft Azure Users Lean on Channel for Support

According to IDC, the Cloud market, including cloud services, hardware, and software, will grow from nearly $70 billion in 2015 to more than $141 billion in 2019. Software as a Services (SaaS) will continue to be the dominant cloud computing type, gaining more than two thirds of all public cloud spending. This isn’t very surprising as most customer demand is at the application level. Spending on Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) are projected to grow at a faster rate than SaaS with five-year CAGRs of 27% and 31% respectively. This effectively means that cloud will change the fundamental nature of computing and will continue to do so through 2020.

Microsoft announced that its public cloud platform, Azure, was generating around 120,000 new customers every month. This was a certain increase over the 100,000 new customers per month the company had boasted one year previous – a clear indication that enterprise clients are finding the benefits of Azure environments and are latching onto the opportunity to optimize their IT infrastructure by deploying in the public cloud. This creates a huge opportunity for MSPs and CSPs.

NetEnrich conducted a survey of 80+ IT professionals in large and midmarket companies. A key takeaway was that Azure use is high — 46% of respondents are running at least half of their IT infrastructure and workloads on Microsoft’s cloud service — and companies are relying on channel providers to help them achieve various business and technical benefits.

Press Release: Microsoft Azure Users Lean on Channel for Support

Click below to view & download the survey infographic.

NetEnrich Survey Featured – We’re very pleased to announce that the NetEnrich Survey on Microsoft Azure has been published by major technology news websites and blogs. Here’s a list of the publications, and excerpts from the posts.

Yahoo Finance

Despite hefty competition in the public cloud infrastructure space, Microsoft’s Azure unit realized revenue of $6.9 billion in the last quarter, and Microsoft estimates Azure compute usage more than doubling year over year, according to some reports. NetEnrich is a Microsoft Technology Partner for Azure. The firm has hundreds of partners that white label and leverage NetEnrich to support more than 1,400 end-clients, including top brands. Its partners include top distributors such as Ingram Micro, Tech Data, Westcon, Softbank (Japan), and Synnex.

Read full post: http://finance.yahoo.com/news/netenrich-survey-microsoft-azure-users-110000491.html

 

eWeek

Microsoft Azure, the cloud platform as a service used by businesses of all sizes to provide their computing infrastructure and run important applications, is growing fast, according to a new survey from cloud services company NetEnrich. In its survey of more than 80 IT professionals who work for large and midmarket enterprises, NetEnrich found that many companies are running at least a part of their computing infrastructure on Azure. They also report that they’re increasingly relying on Azure to support mission-critical solutions. Those companies have found Azure provides cost savings and business-continuity features that are invaluable for their operations.

Read full post: http://www.eweek.com/cloud/slideshows/how-managed-service-providers-are-driving-microsoft-azure-adoption.html

 

Channelnomics

Microsoft Azure customers are “very likely” to work with an MSP over the next year, data released this week by master MSP NetEnrich finds. Many survey respondents cited channel companies as key to their use of and success with Microsoft Azure. Sixty-seven percent said they were “very likely” to engage a Managed Services Provider (MSP) in the next year to migrate to Azure or to manage their cloud and/or on-premises environment.

Read full post: http://www.channelnomics.com/channelnomics-us/news/3004803/microsoft-azure-customers-very-likely-to-hire-an-msp-survey

 

CloudTech

 

The biggest perceived benefits of Azure were a reduction in total cost of ownership, on-demand availability and business continuity, according to 47% of respondents. Despite leaning on MSPs, almost two thirds (64%) said they plan to purchase tools in the coming year to help with Azure migration and management. “Microsoft Azure is clearly growing its position in the public cloud market as companies of all sizes look to modernize infrastructure, deploy new services quickly and reduce costs,” said NetEnrich senior VP Justin Crotty.

Read full post: http://www.cloudcomputing-news.net/news/2017/feb/17/azure-usage-continues-grow-organisations-need-channel-help-succeed/

 

Channel Partners Online

The NetEnrich survey found that the biggest benefits from getting MSP assistance are security, backup, and disaster-recovery planning, followed by the discovery and inventory of IT resources. The biggest challenges that Azure adopters face, according the study, are data security and privacy, and budget limits.

Read full post: http://www.channelpartnersonline.com/news/2017/02/microsoft-azure-adoption-relies-on-channel-msps.aspx

 

Channel Times

A NetEnrich survey of IT professionals in large and medium-size businesses highlights that 62 percent of respondents use the cloud service in some ways. Microsoft Azure is growing, registering revenue of $6.9 billion last quarter. “Microsoft Azure is clearly growing its position in the public cloud market as companies of all sizes look to modernize infrastructure, deploy new services quickly and reduce costs,” said, Justin Crotty, Senior VP and GM for Channel Sales and Marketing at NetEnrich.

“We are hearing this from our channel partners all the time. Their customers are moving aggressively to public cloud and they need support from partners to migrate and manage workloads and applications. We’re able to help distributors, resellers and MSPs by getting them trained on best practices for setting up, monitoring and managing Azure instances,” added Crotty.

Read full post: http://www.channeltimes.com/story/microsoft-cloud-offerings-adoption-is-dependent-on-channel-partners-study/

 

Read IT Quik

Other key findings from the NetEnrich 2017 Microsoft Azure Survey include:

  • 62% of respondents operate a multi-cloud environment including Azure
  • 47% of respondents say the top expected benefits of using Azure are reduction in TCO, on-demand availability, business continuity and geo replication
  • 35% of respondents say the greatest benefit of using Azure 1-2 years from now is cost savings, so IT can dedicate more time to business projects
  • 30% of respondents say the greatest challenge with Azure adoption is data security and privacy concerns; the second biggest challenge (28%) is budgetary constraints
  • 64% of respondents said they plan to purchase tools in the next year to help with Azure migration and management; 57% said they plan to purchase cloud analysis and optimization tools; 56% will buy cloud monitoring tools
  • 37% of respondents said the most important use of Azure in the next year would be to support development and test environments; 35% said the most important use would be to support data center or database modernization
  • 72% of respondents said that third-party tools and services either had “already paid off” or will occur in terms of achieving a fast ROI on Azure
  • 79% of respondents said the interconnect of Azure with other Microsoft products such as Office 365 and Enterprise Mobility Suite is “extremely important”

Read full post: http://www.readitquik.com/news/elastic-computing/microsoft-azure-users-lean-on-channel-for-support/

 

IT Best of Breed

Azure use is climbing and businesses are relying on channel partners to help them squeeze out the various business and technical benefits that Microsoft’s cloud service can deliver, according to an online survey by Microsoft partner NetEnrich.

“Microsoft is leveraging its partner ecosystem quite heavily in the cloud,” better than two other public cloud giants, Amazon Web Services and Google, said Chris Joseph, vice president of product management and marketing at NetEnrich, based in San Jose, Calif. “We are seeing some of the fruits of those investments.” Joseph defended Microsoft’s efforts to improve Azure’s security, saying the vendor has done a “very good job.” Rather, he points to a continued belief among businesses about the security of public cloud.

“They probably still feel the public cloud is not quite there,” he said.

Read full post: http://www.itbestofbreed.com/article/best-sales/businesses-turn-channel-cloud-help-amid-growing-azure-use?itc=refresh

 

Beta News

Among other findings from the NetEnrich survey are that 62 percent of respondents operate a multi-cloud environment including Azure. 30 percent say the greatest challenge with Azure adoption is data security and privacy concerns, the second biggest challenge (28 percent) is budgetary constraints.

A majority (64 percent) say they plan to purchase tools in the next year to help with Azure migration and management. In addition, 57 percent say they plan to purchase cloud analysis and optimization tools and 56 percent will buy cloud monitoring tools.

The ability to interconnect Azure with other Microsoft products such as Office 365 and Enterprise Mobility Suite is extremely important for 79 percent of respondents.

Read full post: https://betanews.com/2017/02/17/azure-managed-service-providers/

A day in the life of a NOC technician

It’s never a good day for MSPs when the network goes down. But if your team isn’t on top of it, and learns about the outage from the client, it could be a nightmare.
Staying on top of the day-to-day IT grind requires end-to-end visibility.  To effectively and proactively manage IT from the core to the edge requires Network Operations Center (NOC) technicians and experts.

NetEnrich Video Blog – A day in the life of a NOC technician

In our latest video blog, we discuss about the daily tasks and activities of a NOC technician. The bulk of the time is spent on detecting and troubleshooting network errors, in order to maintain smooth operations. A NOC technician also supports your staff by distributing software and updating computer systems.

Watch this video to learn more:

How do you know when you have an effective Security Operations Center (SOC)?

According to the National Cyber Security Alliance, six out of 10 SMB businesses that suffer a security breach go out of business after 6 months. How many of your customers have been victims of a security breach? If you are able to help save them, it means you are now deploying resources to reactively remediate the situation. Not really the best use of your resources. Or worse, their business closes which has an immediate impact to your bottom line.

NetEnrich Video Blog – How do you know when you have an effective SOC?

In our latest video blog, we talk about how an effective SOC should function. Network monitoring, threat detection and investigation are the usual priority tasks for any SOC, however for a SOC to be truly effective it needs to be proactive. To fight intrusions, it’s very important to have more eyes on the system, with stringent monitoring protocols.

Watch this video to learn more:

3 tips for ensuring UC migrations are a success

Today, the world is more connected and businesses have started embracing global operations. This has led to complications in terms of enhancing communication strategies, so that everyone is connected. Supply chains are increasingly becoming more dependent on intricate strategies, so to facilitate better business, collaboration is key and has to be effective. Unified communications help to connect and unify all your methods of communication, including phone, faxing, instant messages and email, among others.

NetEnrich Video Blog – 3 Tips for Ensuring UC Migrations are a Success

In our latest video blog we speak about the challenges you can face during migrating Unified Communication (UC) components and how you can ensure successful migrations across various components, technologies, and infrastructure. The important considerations include, comprehensive assessments of infrastructure and key drivers for migration, creation of clear deployment strategies, and multiple tests after migration.

Watch this video to learn more:

Three Steps to the Cloud

The first in a three-part series, by Javed Sikander, CTO Cloud Services, NetEnrich.

In the past 10 years at Microsoft, XtreamIT and now at NetEnrich, I have encountered many IT executives’ whose heart is in the right place with the cloud. They see cloud as the best way to reduce IT costs, improve customer service levels and modernize their IT infrastructure.

Yet many CIOs and IT directors struggle to efficiently move to the cloud due to the lack of a plan and roadmap. Many have engaged with large services providers, only to get meaningless high level analysis that is not actionable.

Companies that are successful at adopting the cloud and achieving ROI have taken a bottom-up approach. They first identify a small set of workloads that are low risk for cloud migration. Then, instead of engaging a large general purpose service integrator, they select a small, nimble cloud services provider with the skills, best practices and tools to efficiently migrate workloads to the public cloud.

NetEnrich is one such small but nimble cloud services provider. We work with companies who want to migrate workloads to the public cloud (e.g. Azure), and we perform three types of cloud services:

  1. Discovery and Cloud Assessment
  2. IaaS and PaaS Migration
  3. Management and Optimization

Discovery and Cloud Assessment

We often begin by running an assessment of a customer’s IT environment. It’s not unusual for enterprise CIOs to lack knowledge of statistics such as: the number of Windows or Linux VMs, which applications are dependent on which services, and which APIs have been exposed to business partners.

  • The first step is to discover the environment and assemble an inventory of all workloads and resources, using automated tools.
  • Next, we map the on-premises resources to the right-sized cloud resources. It’s important to collect detailed performance data and size the cloud resources accordingly.

Here is one mini-case study of a customer we helped through this process:

The client company lacked in-house resources and had a limited understanding of the complexity of migrating to Azure. As a result, IT was many steps behind on the cloud migration roadmap.

We worked with them to identify a migration-ready enterprise application, and performed a complete assessment of what it would take to move it to Azure. Using our automated discovery and Azure resource mapping tools, we provided an assessment report (download here) in just one week’s time. The report provided a plan for the application migration to Azure with detailed mapping of on-premises workloads to appropriate Azure resources. The plan also identified the code changes needed in the new PaaS model, and mapped the remote desktop environment into Azure.

Within weeks, the customer was on its way to realize a 52% ROI over three years, as compared to continuing with their on-premises environment.

In my next blog, I will share insights on Migration.

As always, for further help and expertise on Azure, talk to us, the Azure experts.

Cloud Migration – The Top FAQs

Businesses used to have entire rooms filled with bulky desktops and equally complicated enterprise applications. This has changed radically in the last few years, with the on-premise application development structure experiencing a downfall due to cloud technology adoption. The cloud enables users to develop and deploy applications at lower costs. Public clouds like Microsoft Azure and Amazon Web Services (AWS) are gaining popularity as they offer easy scalability, provide cost effectiveness, and increase reliability.

Migration to the cloud can provide multiple benefits, however without a sound cloud strategy, the entire exercise may fall flat. It’s critical to identify and understand both the business and technical circumstances which may prevent migrating to the public cloud from being the ideal solution for your organization. What should you look out for? Which applications make the most sense to migrate? How should applications be modified to be cloud friendly? There are many questions and challenges involved in each phase of cloud migration. We’ve identified important frequently asked questions (FAQs) in these phases of migration to cloud, which can help you build a comprehensive and air-tight cloud migration strategy.

Assessment

When it comes to cloud services, not all of them are alike, and one size doesn’t fit all. Many businesses try to evaluate a preferred cloud environment before learning how that cloud matches their organization’s application portfolio, culture, and maturity. The top questions you should ask yourself and the service providers are:

  • Is THIS cloud right for you? There are numerous providers of cloud services, and not all of them fit your specific requirements. One may offer thousands of virtual servers in seconds, while another may deliver managed services. In such situations, you should consider what matters most to your organization and evaluate the few providers who match these requirements.
  • Where are the “gaps”? In most cases, once the first assessment of cloud providers is complete, you will receive a list of deficiencies or gaps for migration to be successful. It is very important to discuss these gaps with the provider and reach a common ground in terms of how these gaps will be closed in the near future or if there are any viable workarounds to these gaps.
  • What happens to your existing tools? Every business has an existing set of tools and processes, to which you’ve grown accustomed to. If you are not able to adapt these predefined tools to the cloud environments, ensure that you are familiar and comfortable with the toolsets supported by the cloud vendor.

Planning

So after the first round of assessment, you would’ve narrowed down your choices and picked a cloud provider. The next phase is planning the migration. So what are the important questions to consider?

  • What are the initial apps and/or workloads and/or environments? The first applications that you move to the cloud, are the ones which are not business critical. It is very important to complete a comprehensive inventory of your applications and indicate the ones that are the best fit, for a cloud environment.
  • How will you deploy updated code and configurations to the environment, and what internal processes have to change to leverage the new service? Your new cloud service may work with your existing system administration tools, or it may not. Modern configuration management tools like Chef or Ansible, include extensions which can work seamlessly with your cloud destination. Simulation of deployment and configuration enables you to identify these areas of improvement. Moreover, your documented procedures for change management, testing, and deployments, may not apply in the same way when using cloud services. It is imperative to make a thorough assessment to understand the changes that need to be made.
  • Have you completed a pilot that addresses these concerns? Migration without proper testing and evaluation can lead to many complications. To avoid such issues, set up applications physically in the target cloud and do trial runs. Familiarity with the interface, capabilities, and constraints can provide valuable hands-on expertise.

Migration

If your planning has been comprehensive, migration itself shouldn’t pose many challenges. A robust cloud strategy will provide you with the confidence to handle the unexpected, and complete migration seamlessly.

  • How are the apps and data being distributed to the cloud environment? There are multiple ways to get your applications and data up to a cloud location. For large data sets you can either compress the data and copy it to a staging location in the target cloud, before transferring it to the final destination or physically ship drives to the cloud provider. For smaller workloads, you can use copy commands and pass this data over your internet connection.
  • What are the security controls that are being put in place? During migration you may face issues with staging servers or temporary object storage repositories. Ensure that you’ve planned in advance and in detail, for data and access security.
  • How are the virtual machines or data migrated? Moving entire VMs is a common tactic to migrate an application to the cloud. However, there can be unexpected complications depending on how the VM was linked to the on-premises network, the domain, the types of drives being used, and more. Though the “lift and shift” of VMs often appears to be the easiest route to cloud, it can be more complicated than you expect. Your data may move to a database-as-a-service environment, or a self-managed database instance. It is crucial to understand the tools provided by the cloud service provider and the limitations which may exist in terms of data volume, or structure.

Validation

After completion of migration, the last phase of cloud adoption is to verify that all aspects of the applications are performing as expected.

 

  • Are the applications reachable? The various application services have to be checked to make sure that all the users can access them, and internal components are able to communicate without any errors.
  • Can your administrative tools access the cloud environment? This is the last opportunity to validate all the management tools to check if they can communicate with the cloud applications and monitor them without any issues.
  • Has all the data been migrated to the environment? Automation is a great tool to verify that both the transaction data and reference data have been transferred successfully to the cloud. If you have created complex data relationships, one failed migration can lead to unseen complications and cascading problems.

To summarize, organizations are successfully adopting cloud services and actively expanding their IT portfolio by migrating applications to an environment which is more agile. The best way to avoid frustrations with migrations is to diligently evaluate your organization’s readiness and goals, and prepare realistic answers to all the questions you may encounter.

As always, for further help and expertise on Azure, talk to us, the Azure experts.

Digital disruption, cloud, and the end of massive internal IT systems

Recent surveys and evidence are confirming what many business leaders have been anticipating for a while now. Digital disruption has been the defining feature of the past decade and will continue to wreak havoc for those who are unprepared for it. According to a report in 2016 by the World Economic Forum, the digital revolution is already transforming companies and even entire industries. In this new world, large and successful companies that predate the digital revolution, can feel like they are being closed down from all sides, with hundreds of startups attacking traditional markets. CIOs, CTOs and IT managers in many companies are struggling to make this change.

Digital disruption and business models:

There are many companies leading the charge when it comes to digital disruption, the Ubers, Netflixes and the GEs, are winning new markets because they understand the potential of reinventing business models through the strategic and pervasive use of technology. These companies have implemented digital technologies across their business and have been successful in enhancing their revenue sources.

To deal with digital disruption head-on, companies need to move beyond viewing technology merely as a cost and seeing it as a critical enabler for revenue generation. This culture has to be sponsored by the leadership, and they have to encourage risk taking and innovation. This will lead to continuous improvement to enable new and leaner operating models, underpinned by agile business processes, connected platforms, analytics and collaboration capabilities to enhance the productivity of the firm.

Companies in traditional industries such as transportation, manufacturing, agriculture and hospitality are harnessing technology to bring forth new services to customers who want it. The biggest driver for this disruption is the advent of cloud technologies. The merging of cloud computing, mobile devices, agile development, social collaboration and sensor data are the main forces driving digital disruption across industries and businesses.

The Cloud gets bigger:

Cloud computing, for one, continues to grow every year. Forrester Research predicts the global cloud computing market will mushroom from $40.7 billion this year to a staggering $241 billion by 2020. This is a clear indicator of the fact that massive internal IT systems are waning and businesses are recognizing this paradigm shift.

To overcome digital disruption, organizations need to adjust their approach rapidly. By embracing cloud, and taking strategic decisions on moving key infrastructure and/or applications there, businesses are able to leverage some notable advantages, such as:

  • Better flexibility: Ability to respond faster to changing demand, advances in technology, new market opportunities and supply chain disruptions.
  • Consistent profits: Firms who rely on revenues to cover high-fixed costs, tend to experience swings in profits. This happens as the net income depends on utilization, so moving to cloud can eliminate such volatility in profits.
  • Increased cost savings: Cloud computing can transform the business model to being asset-light, which enables scaling without having to invest in additional capital.

The Opportunity:

Digital transformation may seem like an unstoppable force, but it does present some valuable opportunities. IT organizations are being asked to change in multiple ways, at an incredibly fast pace. Traditional IT workers, system administrators and network engineers have not been trained to disrupt business, but to maintain systems and uptime. This shift in culture needs to be inculcated at every organizational level, for it to be imbibed by the entire system and to show some effective results. Nowadays, IT departments can’t afford to spend their precious budgets on monitoring, updating and configuring systems. The focus is entirely on supporting the core business.

“Even technology companies like Apple are not managing IT, because they are not selling IT, but consumer devices,” says Raju Chekuri, president and CEO of NetEnrich. “If you’re going to internally manage IT, how much money do you have to spend? Every Fortune 500 company is looking at how to spend less on running IT.”

Your local or regional service provider can help you take the next steps towards overcoming digital disruption, and spending less on running IT. Contact us to find out about local or regional service providers in your area.