Economic crisis in recent years has expanded across Latin America triggering the business need to implement solutions to reduce costs and maintenance and consequently increase security: cloud migration was the chosen option. By Hernán Sabby, Product Leader at IFX Networks.
This model of consuming technology as a service (applications, computing and hosting) without making investment, with secure access from any location provides companies important cost saving structures as it eliminates initial investment and instead offers them lower variable expenses based on consumption. In accordance with JP Morgan report, in 2018 a 16% of company operations are made in the cloud, but executive directors and also IT managers estimate that this figure will be above 40% in 2020. The adoption of services in the public cloud is progressing by configuring a sector that is wide and with many offers and available technologies. The change in cloud environment is constant and experts identify some trends that will set the evolution of the sector during this and the coming years.
Myths about cloud implementation
Saving is generated when purchasing equipment or backup and security devices that integrate the complete solution. You can save time because services are delivered faster therefore they are in production earlier than expected and the relationship is almost 90% time saving.
On-premise software requires in-house servers, software licenses, integrations and qualified IT support. Once the system starts working, you need to invest time and money in routine maintenance and constant system updates. This in the long term would be more expensive than Software as a Service (SaaS) that makes automatic updates and the provider manages maintenance. Service Cloud productivity is measured with SLA/ANS, all products have an associated SLA and ISO certification. In this way, there is product availability based on how long it is in operations providing service.
In contrast with on premise solutions that require a complex technological structure and investment in qualified staff, cloud based solutions are scalable, as the Company grows, it can expand system functionality if required, without large investment. Cloud operating companies have 100% benefits, because they do not only have cost savings above 35% (this number comes from the linear comparison of costs and involves even those hidden costs that all companies have) but they can reuse those funds in their core business strengthening their market.