Digital Acceleration and the Next Normal

We have seen incredible and rapid change in recent times. The idea of “digital transformation” for instance has seen its definition shift dramatically.

For a long time, most of us accepted that the concept involved a long-term strategy to adopt new technologies that would help us to modernize business processes, achieve greater efficiency and in an ideal world cut costs. But the moment the global health crisis struck the entire world stopped and so did just about every digital transformation project.

At first, the response to COVID-19 called for steps that felt less like long-term change than immediate actions to enable the continuity and stability to ensure organizations could continue to operate and people could work safely.

Then, the need to reduce cost and risk took precedence as organizations large and small looked to optimize their environments and entered what could be considered an “efficiency phase.”

Now, as we embark on the earliest stages of a recovery, the idea of digital transformation has re-emerged as an initiative that encompasses the process of defining, designing and delivering on the “next normal.” We understand that many things will never be the same. Some of the ways we live, work, and do business will require a re-model. Others will need a new model altogether.

Accelerating to the Next Normal

How the next normal looks will vary by industry, region and organization but two things we know are: 1) it will be digital-first and 2) it will move faster than ever.

Today, modernization is no longer an IT aspiration – it’s an operational necessity.  Consider the following:

  • An online consumer is 4 times more likely to switch to a competitor if they experience service-related problems (Source: Glance)
  • As many as 78% of consumers have backed out of an online purchase because of bad user experience (Source: Glance)
  • When it comes to adopting a new technology or process, cultural resistance can persist for up to 24 months, making the need to begin the process of change more urgent than ever (Source: Gartner)

Now, to compete and grow, organizations will need to harness this state of digital acceleration, a dedicated effort to rapidly modernize by:

  • Embracing an agile business model: Using modernized applications and infrastructure platforms that support the new requirements of doing business and ensure the ideal customer experience to drive revenue growth.
  • Rethinking the future of work: Re-imagining the workforce and enabling them with secure workspaces and collaboration platforms.

Let’s examine these two vital considerations for technology leaders as they begin to accelerate on the road to recovery.

Embracing an Agile Business Model

In the wake of the COVID-19 outbreak, clothing retailer Zara reported losing over $465 million as 88% of its mall locations closed due to public health and safety measures. In the same period, however, the company’s online sales grew 95%.

As a result, Zara plans to invest $3 billion in developing its online shopping experiences [1].

In the next normal, an inability to adapt to change or innovate at or faster than the pace of the competition will put many organizations at risk of falling behind.

Embracing agile business is about seizing an opportunity to modernize the way you do business and – most important – to differentiate the way you interact with and serve your customers.

This is no easy task.

Some of the organizations we work with have told us, “We have legacy applications and systems we can’t change as fast as we need to.” In fact, organizations today spend 60 to 80% of their IT budgets on maintaining and operating traditional systems, leaving less time and resources for modernization initiatives. [2] Furthermore, 50% of IT leaders say the need to maintain traditional systems is impeding their efforts to transform. [3]

Others asked, “Our competitor’s digital strategy is taking our client base – what technologies should we consider?” Even with a modern, agile approach, Gartner finds 90% of organizations have said the need for skills in cloud infrastructure and emerging technologies outstrips demand.

How can your organization achieve a state of digital acceleration as an agile business?

  • Divest from infrastructure that doesn’t differentiate you: Avoid the burden of managing infrastructure that doesn’t drive a modern and streamlined customer or employee experience by embracing cloud technologies.
  • Focus on building a culture of rapid innovation: Pinpoint and remove barriers to adoption for agile methodologies, DevOps and automation to bring differentiated products and services to market faster.
  • Extend existing on-premises assets where required: Use modern cloud platforms to extend the traditional data center and modernize applications with less complexity and risk.

Rethinking the Future of Work

Over the past several months, employees everywhere have experienced the kind of transformation expected to take years in a matter of weeks – or even days. Where remote work was once considered a perk by some, it’s become a reality for many, perhaps indefinitely.

The immediate response to COVID-19 required IT leaders, along with their business and human resources counterparts, to provide for what their users needed right away: To be able to resume business as usual, safely and securely, with the same quality of experience.

To this end, many organizations needed to implement or drive adoption of new solutions for collaboration, security, remote access and virtual desktops.  As an example, between March 18 and April 29, Microsoft Teams saw 43 million new daily users, a growth of 134% in just over a month. This kind of application adoption has had a considerable impact on IT management and end-user enablement as organizations had to figure out how to deploy, manage and educate remotely.

And many organizations are still adapting to these changes.

Being ready for the future of work involves not only adapting to what the user needs today but also re-imagining the workplace to provide what they need to be successful in the next normal.

This calls for IT leaders to remove the barriers between the physical and digital workplace and break down silos around IT to connect the people, processes, and technologies to support growth and innovation.

How can your organization improve its readiness for the future of work?

  • Remove the barriers between the physical and digital workplace: Bring everyone together with a simple experience via modern working environments that run on cloud-based applications.
  • Empower IT to deliver a great employee experience: Onboard the right management and security solutions to make the employee experience easy to deploy, manage and protect.
  • Build the best employee experience for your organization: Design and deliver an end-to-end productivity and collaboration solution customized for your end-user requirements.
  • Get the most from your investments by ensuring adoption: Leverage strategic partnerships to drive structured on-boarding and usage of new tools and provide ongoing training and IT mentorship.

How Softchoice Will Continue to Help

The road to recovery from the global pandemic will look different for every organization.

From adapting to new challenges to defining your own next normal, Softchoice is here to help you make the right decisions to sustain momentum out of the crisis and thrive in recovery.

 

Are you ready to re-imagine your digital transformation journey?

Explore Softchoice services for Cloud and Enabling End Users.

How to Add to Your IT Environment without Adding Costs

Part 2 of our 2-part series on Driving Efficiency through Infrastructure Optimization. Read Part 1 “Where to Find Cost Savings in Your Cloud or Data Center Environment

In the response to the current global crisis, short-term cost reductions have been prioritized by many  organizations looking to keep their businesses viable during the economic downturn.  Quite often they are looking to drive greater efficiency in their IT environments.

However, as organizations move from efficiency into recovery and beyond, the need to add new applications and workloads won’t disappear. It’s important for organizations to consider ways to optimize infrastructure to add new workloads while incurring minimal or no additional costs.

Why is this so important?  In the data center, 67% of organizations over-invest in data center storage while 33% have run out of capacity or experienced high utilization that impacted up-time (Source: Futurum Research). In the cloud, 60% of organizations have overspent their planned budgets at some point (Source: Rightscale).

Organizations that sustain efficiencies found in the short term will equip themselves to compete and thrive in recovery and beyond. This is where looking into the data center to find excess capacity and resources, tiering storage appropriately and choosing cloud over new servers all come into play.

Here are the steps you can take to optimize your infrastructure to add new workloads cost effectively by optimizing the on-premise data center and moving the right workloads into the cloud.

Optimizing Your On-Premise Data Center

As application workloads change, the optimal infrastructure setup to support them changes, too. When the time comes to add new applications to the IT environment, adding new hardware or spinning up new workloads in the cloud without a plan in place often results in unnecessary waste.

Instead, look for opportunities to optimize existing data center infrastructure to support new workloads without additional costs.

The following actions will help you understand your applications and ensure you have each running on the ideal compute and storage resources:

  • Take a comprehensive inventory: Use data collection tools to gather a holistic view of your existing on-premise environment, including devices and workloads. Capturing and analyzing current usage and performance data will uncover opportunities for greater efficiency. In turn, this data can inform your decisions about where to make changes based on accurate estimates of cost and business impact.
  • Consolidate the data center: Now is the time to assess the business value of owning multiple data center sites and whether there is an opportunity to consolidate these. Shutting down unnecessary sites and leveraging lower-cost cloud backup and disaster recovery could provide considerable infrastructure efficiency benefits.
  • Defer data center refresh costs: If you have hardware devices that have or are about to reach end-of-support (EOS) or end-of-life (EOL) and migrating to the cloud isn’t an option, a refresh may be unavoidable. Fortunately, many hardware providers have deferred some or all upfront costs until 2021 to help organizations through cash flow issues. It may also be worth considering other alternatives to an upfront capital expenditure, such as leasing or pay-per-usage options.

Migrating the Right Workloads to the Cloud

For many organizations, COVID-19 has put plans to migrate applications and workloads to the cloud on fast-forward. This has the potential to increase agility and cost efficiency by reducing technical debt and physical footprint associated with the traditional data center.

In fact, the Flexera State of the Cloud Report 2020 finds that more than half surveyed have seen increased cloud usage due to reliance on cloud-based applications since stay-at-home orders came into effect worldwide (Source: Flexera).

Reduced IT operations personnel, difficulties in accessing data center facilities and delays in hardware supply chains have all contributed to this shift.

Nonetheless, not every application or workload makes sense in the cloud. Furthermore, challenges in understanding application dependencies, assessing the feasibility of migration and predicting the costs to run a given workload on-premise versus in the cloud all get in the way.

The following steps will help you identify the best candidate workloads for cloud migration:

  • Assess suitability and identify migration risks: Analyze application, data and dependencies to determine the most suitable workloads for cloud migration and address potential performance and downtime risks.
  • Conduct total cost of ownership (TCO) and return on investment (ROI) analysis: Equipped with insights into applications, you’ll be able to define the infrastructure requirements to run applications in the cloud at optimal performance and cost.
  • Compare the cost-benefit of running each workload in the cloud vs. on-premise: The next step is to estimate the cost and business impact of running a given workload on-prem or in the cloud.
  • Plan and migrate: From here, you can determine the appropriate migration strategy to move workloads into the cloud with minimal risk. With complete and accurate documentation, you can establish the best migration sequence and apply dependency controls to avoid downtime.

Taking steps to optimize infrastructure and minimize the cost of adding new application workloads to your environment is a big milestone on the road to recovery.

We offer the following solutions to assist organizations like yours to move ahead with infrastructure optimization in the data center and migrate the right workloads to the cloud.

  • Workload Assessment: Evaluate the technical feasibility and cost of migrating and running application workloads in the public cloud based on usage, performance and technical characteristics of existing workloads to identify application dependencies, total cost of ownership and cost management considerations.
  • Public Cloud Accelerator: Leverage an operating expense (OPEX) model to meet new workload needs by reducing the risk of deploying workloads to the cloud and mitigating cost overruns based on proven experience earned through hundreds of cloud engagements.

Our team of licensing and technology vendor experts are ready to help you find efficiencies wherever you are in your journey from response to recovery.

Looking for further insights to help  drive efficiency and optimize the infrastructure in your IT environment? 

Watch our webinar, “Cloud Cost Optimization: How to Avoid Overspend and Control Costs,” on-demand or connect with an expert.

Dell EMC with Azure Stack delivers first public cloud-like experience on-premises

Dell-EMC and Azure Stack delivers first public cloud-like experience on-premises

Microsoft’s Azure Stack extends public cloud capabilities to on-premises data centers with first-to-market Dell EMC Cloud Appliance.

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