Apparently we’re coming out of the recession, but no-one wants to predict when it will happen or if the UK is in for a double dip. The last two years have made businesses tighten belts and reign in spending – but it’s also made everyone examine what they’re spending on and why. Short-term gains are still on the minds of business leaders and potential long-term savings are much lower on the priorities list.
So how can businesses go about transforming their technology? It isn’t just about cost cutting, it’s about making the whole business run smoothly; eliminating waste, cutting out unnecessary procedures, making sure IT is delivering results with tangible benefits and demonstrating ROI. We’ve seen customers say that cost is the primary driver for change at the moment showing that finances are still front of mind, just in case the country isn’t out of recession.
Transformation should also be about flexibility and scalability. Of course businesses have had to cut back, but is the plan to stay in that hibernate and survive state – or should the focus switch to recovery and growth? Companies cannot afford to be so fixated on optimisation that they are caught on the back foot when growth opportunities arise.
Virtualisation is the flavour of the moment, but it’s such a small percentage of a company’s potential ‘road map’ and it might not be the answer. Businesses need to remember that it’s not a cure all solution, rather than jump on the bandwagon with unrealistic expectations. Effective tech transformation means agility and being able to turn technology on and off quickly and withdraw non-critical areas instantly. Mergers and acquisitions are a key area for this, when a newly consolidated company can make big savings. Reducing expenditure takes centre stage with a new merged company, and realising the economies of scale that can be achieved can lead to big savings.