“The Australian economy is buoyant, with low inflation, an open regulatory framework, a stable capital market system and low unemployment, with a growing, multi-cultural workforce, that encourages people to do business and strong trade links. In 2018 our clients,
several years post the GFC, are investing in their businesses to obtain both top and bottom line growth. They’re adopting new technologies to improve efficiencies and connect with their customers.” Rob Bazzani, National Managing Partner, KPMG Enterprise – KPMG Mid-Market Growth 2.0 Report
These sentiments about the mid-market from KPMG are echoed with the news that in 2019, Australian businesses intend to increase their IT spend according to technology analysts, Telsyte. The same Telsyte report highlights cloud spend will rise from $688 million in 2018 to around $1.2 billion by 2022. Clearly, cloud has the confidence of many and will play a major role in transforming organisations in the mid-market.
Yet, despite the optimism, there’s also a degree of caution, specifically among mid-sized businesses about the role of technology. In KPMG’s Growth 2.0 report, Brad Miller, Partner and National Service Line Leader – Advisory, KPMG Enterprise comments;
“There is a degree of fear which may have stalled progress in the past. Companies read about failed tech, or tech which takes a great deal of time to implement and this is as concerning to them as cost or the perceived security risks of migrating to the cloud.”
Like many others, you’re likely concerned about ripping legacy IT systems out and placing your trust into the cloud to deliver the so-called nirvana of cost reduction. Afterall, you’ve already invested much time, effort and indeed money to get your IT systems to the point where they are now. Naturally there is some reticence. However, you likely know the move to cloud is inevitable. Therefore, devising a cloud strategy is about working out the best fit solution for your business. And, this is why it pays to think beyond the sole objective of simply saving money.
And you’d be right to think you could save money. Afterall, there’s no more expensive equipment to purchase and maintain. You simply rent what you need and let someone else take care of the infrastructure maintenance. And, while it’s true, you could recognise cost savings in the short term by shifting spend from CapEx to OpEx, a move to cloud generates far greater efficiencies than simply saving you money.
Hybrid cloud, as the name suggests is all about providing you with choice. Your business probably has a wide degree of changing demands and technology considerations. If so, hybrid cloud gives you the freedom to choose how to meet those demands. The reliability and flexibility of a public cloud, combined with security, compliant and safety of keeping certain applications and workloads in-house. Not to mention maintaining and utilising your significant investment of on-premise infrastructure over the years.
Hybrid cloud provides a great stepping stone for companies wishing to begin their journey into the cloud by placing non-critical workloads in the public cloud. Yet, you still retain control of those more critical applications that require the security of an in house environment. For example, customer data that requires protection to adhere to any legal requirements. Or, any loss of IP that could harm the reputation of your business, should it become compromised in the public cloud.
One challenge shared by many mid-sized organisations is the ability to attract and retain great talent. Working environments and the ability to offer flexibility could make all the difference. The ability to work flexibly, to store and share information freely across collaboration tools is where the use of public cloud can benefit greatly. This allows employees the opportunity to work freely from wherever they choose, while still having access to data to enable great decision-making that benefits your customers for example.
Hybrid cloud also provides exceptional reliability where you need it most in your business.
Critical customer data and essential applications for example need to be maintained in-house, away from any potential connection challenges that could impact your business negatively. Yet similarly, you want the ability to access rapid processing to drive nimble decision-making that creates and enhances brilliant customer relationships.
Hybrid cloud offers your business many benefits. And, while the simplification of cost is but just one of these, there’s so much more to what is a very popular strategy. But, it can be challenging to implement. Particularly if you lack the skills in house to make it a driving force of your business transformation. Therefore, it will almost certainly require the help of experts from outside of your business to not only help you create the right path, but through to implementation as well.