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De-risk IT investment for business growth

Posted by on September 15, 2014

The UK economy has hit its longest growth phase since the financial crisis, with five consecutive quarters of growth. The future is looking brighter but longstanding talk of
a double-dip or triple-dip recession has made many businesses cautious of investing too eagerly in growth.

Some see it as balancing risk: should they upgrade their technology to get ahead of the competition? What if there’s another dip and the investment doesn’t pay off?

On the other hand, should they hold off investing in new technology and expanding capacity and risk stifling business growth? What if the economy recovers and the competitor who did buy the latest innovation or reduced their cost base gets a greater market share? Unpredictability is a major challenge. 

This is a particular problem with traditional models of buying capacity, such as outsourced data centres. In the past companies often found themselves locked into rigid agreements for many years (15 years was not uncommon), paying for the same capacity every month whether they needed it or not. This rigidity has its roots in what businesses actually paid for: available power capacity. On the surface, this seemed fair, but what it actually equated to was space: space in racks for servers and floor space in data centre real estate.

In the meantime, the explosion in everything digital means that businesses cannot afford to stagnate by sticking with the technology they have. Although interest rates are currently low and economic growth is likely, it isn’t certain. Thriving businesses need to invest and innovate- but without the risk.

Rationalise and de-risk

Small enterprises in particular stand in good stead to make the most of an economic upswing being small and agile enough to respond quickest to the growth opportunities, they can spearhead de-risked IT investment through virtualisation and a shift to the cloud.

For companies who invest in cloud, unpredictability is no longer a challenge. In fact, they no longer even have to be able to predict their needs or circumstances to decide on the technology they need. They can simply pay for what they use one month, and pay for what they use the next month, whether or not it’s the same. The capacity is always there when they need it but they don’t have to pay for it when they don’t. But what about the infrastructure that supports the retained IT assets?

For businesses which continue to adapt and grow, the capacity must be able to keep up. Outsourcing to a flexible data centre therefore helps to de-risk investment in IT infrastructure.


Welcome to the infinite data centre

The infinite data centre makes crucial differences to what users pay for. Charging is value orientated and workload focused. This frees businesses to virtualise their retained IT assets, and only pay for what they use.

So if the economy takes another dip, the business with the right mix of public cloud and flexible data centre services scales back what it needs and saves the cost. More importantly, if the economy continues to improve, and the subsequent increase in sales and new-business activity generates even more data, that business has the capacity to scale up and grow with it.

Uncertainty is no longer an inhibitor to growth, even in potentially turbulent economic times.


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