Budgeting for IT using a traditional financial model is challenging. Budgets need to be set well in advance: at least 6 months ahead of time. Anticipating needs this far ahead is difficult. Capacity requirements can be unpredictable because of fluctuating workloads. A traditional financial model may not allow for enough emergency spending when unscheduled downtime or equipment failure occurs.
IT leaders must argue their case in front of the Chief Financial Officer (CFO) before gaining budget approval. Most financial leaders want their IT departments to do more with less. Any budget request must generate return on investment (ROI) and calculate total cost of ownership (TCO). CFOs and CIOs tend to focus on keeping the lights on and short-term projects rather than maintaining legacy systems and planning long-term strategies for modernization and innovation.
Switching to Production-Ready Cloud enables IT leaders to operate according to a new financial model that makes modernization affordable.
The Economics of Production-Ready Cloud
Production-Ready Cloud is a form of platform as a service (PaaS) that enables companies to rethink their financial model. PaaS provides the middleware that organizations need to run, develop, and test applications. Production-Ready Cloud is a finely tuned IBM PaaS that delivers an operating system platform on enterprise-quality hardware and software as a packaged solution. Organizations can manage applications without worrying about the systems needed to support and protect them.
The layers of Production-Ready Cloud include internet pipe into the data center, the data center facility, physical security measures, and virtual security/firewall, as well as server and operating systems with monitoring and management. With Production-Ready Cloud, you also get disaster recovery as a service (DRaaS) and high-availability orchestration with replication, a 24 x 7 x 365 Network Operations Center with help desk services, and other high-value services.
IT leaders shouldn't calculate for the TCO of PaaS. Technically, the cloud resources aren't owned, but leased month by month. Instead, the economic benefits of Production-Ready Cloud can be calculated as ROI. Small and midsized companies gain access to high-quality enterprise equipment instead of having to purchase lower-quality equipment, which is great for ROI. They gain access to pre-architected solutions for DRaaS, replication, and automation that are bundled into their cloud contract, saving them from needing to build solutions or purchase equipment and software separately.
Application development environments can also be created and dismantled quickly and affordably, enabling companies to speed profitable software to market. Workloads run more efficiently, increasing production and the bottom line.
Shifting Away From Capital Expenses
Typically, IT budgets focus on capital expenses for infrastructure provisioning. These expenses include the energy, cooling, and real estate costs required to house and run servers. These costs can run into the millions.
Many IT leaders overprovision because they are unable to anticipate workload fluctuations. If companies experience seasonal workload spikes, they deploy extra servers that sit inactive for most of the fiscal year.
With Production-Ready Cloud, focus shifts to recurring operating expenses. Businesses pay for cloud services at a predictable monthly rate. Resources can be scaled up or down according to workload needs.
Your company isn't burdened by depreciating equipment that wastes space and energy. Because cloud vendors provide resources to multiple clients, they can offer state-of-the-art technology at an affordable rate.
Production-Ready Cloud can even cut down on operational expenses. Your company can save hundreds of thousands of dollars on monitoring, testing, compliance audits, and building maintenance.
Avoiding Expensive Upgrades
Many companies rely on software and IT systems that have been in place for decades, but they lack the funds to perform necessary upgrades. As systems age, they may be difficult to support and costly to maintain. For example, IBM i users tend to stick with the platform because of its reliability. However, these companies could be taking advantage of newer high-performance IBM Power servers, if their budgets would allow for it.
Moving to Production-Ready Cloud empowers organizations to access the latest technology without needing to pay for updates. The monthly fee for IBM PaaS covers upgrades and maintenance the cloud provider performs on its resources.
You also gain access to the technical expertise needed to run state-of-the-art servers, without needing to put someone on salary. Your IT staff is free to focus on the core business and the development of strategic initiatives.
Rethinking Your Budget Strategy
Rethinking your approach to IT infrastructure will enable you to revise your financial strategy. Instead of investing your budget in building and maintaining your on-premises environment, move your mission-critical applications to Production-Ready Cloud.
Stop budgeting to maintain the status quo. Invest in modernization and long-term transformation strategies with cost-effective IBM PaaS in Production-Ready Cloud.
InfoSystems offers affordable Production-Ready Cloud. When you partner with us, you gain highly available IBM PaaS at a predictable monthly rate. We never surprise you with extra charges or hidden fees. Your company avoids the cost of building your own solutions for backup and disaster recovery. Monitoring and management, backup, and dynamic failover are all built-in.