Your company may not use the term “digital transformation,” but chances are you’re living it.
According to IDC, by 2020, 60% of enterprises will have “fully articulated an organization-wide digital platform strategy and will be in the process of implementing that strategy.” Why? Because they’re going to have to if they want to stay competitive.
Companies across industries are already using technology to enable net new revenue streams, products, services, and business models that tap into adjacent markets or new industries altogether. As competition heats up, thinking flexibly and modernizing your own offerings becomes the only way to avoid being “disrupted” — and that goes for both B2B and B2C companies.
Meanwhile, customer expectations are rising, and providing a fast, seamless, and intelligent service experience across channels is just as important as offering innovative products and a memorable brand — and all of these imperatives are best supported by modern infrastructure.
From creating apps to converting your offering into a subscription-based SaaS to leveraging AI and machine learning for a better customer service experience, digital transformation can mean a number of things, but one constant is true across industries: you can’t modernize on legacy technology.
The Phantom Pain of Digital Transformation
What makes digital transformation so painful for many companies is not the expense of adding new technology — it’s the sunken cost of their past investments.
If you spent tens of thousands of dollars in 2009 building an on-premise data center, it understandably stings to move to the cloud in 2018, especially if you’re still paying off those first investments. Convincing upper management and board members why modernization is important is a much harder task when they’re still dealing with the sticker shock of your last big request.
Sunken cost isn’t the most logical basis for IT decisions, but the pain of letting go of a big investment is very real. One VMWare survey showed that 50% of organizations cited legacy systems as a barrier to modernization, making it the number one obstacle on senior stakeholders’ minds.
Hybrid Multi-Cloud Is a Win-Win
In reality, legacy investments should not be a barrier to modernization at all. Rather, legacy technology can make digital transformation happen more smoothly, gradually, and affordably.
When you’re talking to upper management about the costs of modernization, having a hybrid multi-cloud plan may help you overcome their objections in a few ways:
- A hybrid multi-cloud strategy will enable you to spin up modern cloud resources that connect with and complement, rather than replace, your legacy technologies. You can continue to run the processes and applications that make sense for on-premise technology in your data center, while building and deploying new services in the cloud.
- Spreading your cloud service adoption over multiple vendors (the “multi” in multi-cloud) will also help you avoid further vendor lock-in and ease your stakeholders’ minds on having to go through a painful transition in the future.
- Getting started with cloud services doesn’t require a big upfront investment, and your monthly costs will remain relatively low, given that most of your resource-intensive processes will run on the legacy tech.
Connecting Your Legacy Tech to Hybrid Multi-Cloud Environments
Once you’ve convinced your organization to make the change, the bigger challenge is implementing it. Sixty-two percent of IT leaders cite connecting legacy systems to multi-cloud resources as their biggest multi-cloud adoption challenge.
Codero takes this off your plate by doing the work of architecting and implementing your hybrid multi-cloud environment to connect seamlessly with your legacy technologies. Our experts will get to know your company and your tech in an in-depth way to ensure your modernization process happens smoothly and strategically. We’ll also manage your environments on an ongoing basis so your IT continues to run at optimal levels of speed, security, and cost.
Digital transformation is as much of a cultural challenge as a technological one, and understanding the fears and needs of your high-level decision makers can help you lead them down the right path. And in most cases, hybrid multi-cloud will prove to be the smoothest route to modernization for everyone involved.