Magazine / Cloud enablement
Oct 21, 2020 11:35:16 AM

IT costs in the era of data center optimization in the Cloud

Although it can be said that many companies have effectively entered - even in Italy - the era of Cloud and IT optimization, they are still willing to manage costs of data center the traditional way. Of course, there is a resistence to change - especially if so drastic. And we all know how the fear of losing control over the application park, and especially data, still embodies a major deterrent to the spread of remote managed services and the affirmation of the as-a-service logic, declined on the software level, on platforms and, even more so, on infrastructures. CIOs and CTOs are well aware of the benefits of migrating the data center to the Cloud, but often getting top management or owners to overcome their qualms is more difficult than imagined.

However, there is some evidence that cannot be ignored, even by the most suspicious: it is not just about saving on fixed costs, better management of spending and more efficient allocation of resources. If the continuous evolution of the Cloud offer allows to reduce the CapEx and considerably simplify the OpEx on the IT level, on the other hand the constantly increasing cyber threats, market trends and regulatory and regulatory restrictions require companies that choose to continue to manage their data centers in-house with heavy investments. Business can’t stop: digital innovation as well as ordinary administration activities must be supported by an increasingly performing IT apparatus, increasingly secure and increasingly in line with the growing attention to environmental issues. Let's analyse how bringing the data center to the Cloud allows a company to achieve all this at lower costs, case by case.

 

Physical and logical security, because Managed services are convenient

When it comes to security, i.e. the physical and digital barriers necessary to protect the application world and corporate data, the economic benefits offered by the Cloud are immediately obvious. In terms of physical security, in the event of a migration tout-court, the simple fact of no longer having servers cancels the need to devolve ad hoc spaces and structures, as well as to purchase and install devices - such as cameras and sensors - for monitoring engine rooms. With respect to cyber security, relying on managed service providers means protecting virtual data centers with latest generation platforms, constantly updated and managed by professionals with certified skills: solutions and resources that are now indispensable, which, if hired on their own, would significantly weigh on the income statement.

 

Data center costs: no more maintenance and machine upgrades

Compressing or eliminating the entire fleet of machines, focusing on virtual servers made available by Cloud providers - it goes without saying - is equivalent to cutting down the cost of their maintenance and inevitable upgrades. The full functionality of the company data center will be guaranteed through the Service level agreements established with the partner, who will manage its evolution based on the indications of the CIO and CTO by integrating the best solutions available on the market.

 

A new approach to resource management

We mentioned above how CapEx and OpEx will change. It should be specified that compressing fixed asset expenses, thanks to the move to the Cloud, and maintenance costs, through managed services, does not simply mean generating savings: more than anything else it allows companies that focus on managed services to direct investments and skills towards core-business activities with high added value. We therefore move from a logic of control and containment of costs to a strategy of better management of resources.

 

Air conditioning, energy and environmental sustainability

An aspect to be increasingly taken into consideration when deciding to keep the data center on premise is that of its environmental impact, for two reasons, both of which impact on the income statement: the first and most immediate concerns the energy cost of powering the machines and air conditioning. The second is a derivative, and has to do with the expectations that the market has towards the most innovative companies. Doing good business today is no longer enough. Operations must also be compatible with accurate corporate sustainability plans. Plans that certainly have excellent image returns, but which require considerable investments. Focusing on the Cloud, choosing certified suppliers also in this respect, allows you to significantly improve your carbon footprint without affecting too much on the income statement. 

 

Compliance ensured with respect to increasingly stringent regulations

Introducing the issue of regulatory compliance, the cost items that can be reduced thanks to a migration of the data center to the Cloud basically concern all auditing, monitoring and control of the systems with respect to the standards imposed by increasingly stringent regulations: activities that are managed by the provider through integrated "turnkey" services.

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