If your IT company isn’t trying to reduce your costs, tell em to get stuffed

If your IT company isn’t trying to reduce your costs, tell em to get stuffed

Well I’m sure to once again upset a few people in the industry over this post but why not keep up the trend.  😉

Warning: Some deliberate CAPITALISATION of words appear below in order to make a point.

The industry is changing.  Gone are the halcyon dot com days for most IT geeks driving around in flashy sports cars thinking they are IT and a BIT (see what I did there).  Unfortunately for me whilst I was around in the industry for the end of those days, I didn’t first hand experience them and the closest I got was when I bought a fully sick two door 1992 Midnight Blue Celica when I was 19 with N-Trance Stayin Alive blaring on repeat through the streets of Heathmont in Melbourne.

Back to the topic at hand …

This thing called “the cloud” is catching on I heard a fellow IT mate from Canberra say a few weeks ago.  He was obviously taking the piss but unfortunately for many internal IT administrators, IT service companies and sole operators out there, a move to the cloud for their clients or the IT environments they look after is a huge problem for them.  Why I hear you say?  If we are being COMPLETELY honest, it’s generally down to a single thing – job protection.  Let me explain.

IT technicians  and network administrators are in most cases, control freaks BUT before you yell at me, this is by design for a very good reason.  When people touch their networks and infrastructure, things turn to crap and who cops the blame, they do.  This ensures they soon despise change.  If it aint broke, don’t fix it.  Now throw in the fact that for many providers in the IT industry have made their money for many years now out of supplying and supporting on premise kit such as servers and infrastructure – my company included.  So the dilemma faced by the industry behind the scenes is to embrace this shift of delivery of services from the cloud or to push back and create fear.  Rewind 5 or so years ago, it was pretty easy for an IT technician or administrator (internal or external) to come up with reasons for all size businesses NOT to move.  Either it was too expensive or it’s not secure enough were a couple of well used excuses but in any case, at the time it was actually true.

Fast forward to today and it’s a vastly different story.

Ok, before I start I’m going to give you my ultra-simplistic view on public vs private cloud – public is a multi-tenanted service/platform split up to many clients where private is single tenant provided for one business or organisation.  Realistically as public cloud providers mature, the lines between public and private cloud are closing fast but for this blog, lets divide it up.  Public cloud pricing and service offerings is a race to the bottom as far as cloud compute and storage is concerned with namely two of the larger providers being Amazon (AWS) and Microsoft leading the way.  AWS dominates the IAAS (Infrastructure as a service) market globally with over 45% public cloud market share and whilst only been in business for about 10 years, have just announced their 53rd price decrease.  In comparison, Microsoft is smashing it in the public cloud SAAS (Software as a service) with their Office365 suite of products.

Private cloud however in our experience slightly different and we have many clients that are still unable to move to public cloud – either for internal compliance reasons, security concerns or costs inhibitors but the fact is that these inhibitors ARE reducing fast and in the years to come, I think you will find very few private cloud providers still around for general storage and compute.  We the typical mid-market private cloud infrastructure provider won’t in the long term be able to compete for price, features and redundancy.  This day will come – it may not come tomorrow but it will come in coming years if not earlier so it’s important that we put our clients best interests at heart and adjust as required.  This may mean moving to a service that reduces our clients IT spend on infrastructure we don’t own, we lose a bit of control out of and make little margin out of.

THIS IS WHERE JOB PROTECTION COMES IN.  Why would I move a client to the cloud if I lose significant revenue and/or some control?  The answer is simple – if it’s in the best interest of the business you are working in, or it’s in the best interest of your client (either financially, operationally or both), you should otherwise it certainly will catch up with you eventually.  For IT providers, embrace the change, do the right thing for clients and look to replace revenue with new clients or expand your offerings.  Can you live with yourself knowing that you are providing advice to suit your own job protection?

So when your IT company or IT support (either internal or external) tells you that the cloud isn’t the best thing for your business moving forward, don’t completely dismiss their opinion, just consider in who’s best interest is it in for you NOT to move

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