IT Strategy: Companies are facing a challenging second half of the year. At best, we can expect some recovery in the local and global economies, but it will not be quick or easy. IT strategy is no exception in this regard.

Examination and counseling firm Gartner as of late, brought down its worldwide conjecture for the second 50% of the year altogether as the Covid-19 epidemic keeps on hitting new districts of the world. In January, the organization anticipated that worldwide IT spending would increment from $ 3.8 trillion of every 2019 to $ 3.9 trillion out of 2020. Now it predicts previous growth indicators – including hardware and cloud technology sales – won’t stop total spending from declining by 8% compared to 2019.

IT Strategy

One Step Forward, Two Steps Back

The economy is in a state of obscurity. Many countries around the world are gradually feeling the relief of the measures to contain the pandemic. But many industries are still suffering from it because they belong to the regulated industries, or their customer base has lost purchasing power due to the crisis.

There is currently a certain increase in IT sales, which are mainly attributable to infrastructure and equipment for the home office. It is a temporary blister and should not be leaned on. In fact, CFOs will likely freeze IT budgets and only allow substantial purchases. Ventures can possibly rely on an endorsement if they offer immediate and significant financial savings, for example, infrastructure consolidation projects.

In the area of infrastructure, it is expected that many organizations will implement a tiered approach. Critical and essential applications will receive an expensive storage infrastructure that enables the highest availability and performance. While less important applications will have to be satisfied with a cheaper infrastructure. Without a doubt, numerous CFOs want to organize, spend money basically on essential assets, bargain where conceivable. And attempt to spare however much as could be expected.

Dangerous IT Decisions

Economic uncertainty paired with the desire to save costs and concentrate on the essentials can lead to problems. And even financially risky tactics in infrastructure procurement in the long term.

Because in a time of uncertainty, many companies decide to buy infrastructure ad hoc instead of planning for the coming years. The tiered approach I mentioned can set a company back decades and lead to a state of technological “islands” with various systems and management tools. This, in turn, over time, leads to wasted time, manpower, and resources and longer turnaround time for any project. Companies that save on infrastructure will act more slowly and run the risk of

Besides, it cannot be ruled out that there will be a second wave of the Covid-19 epidemic at the end of the year. Companies are aware that the infrastructure should be prepared for the second wave. However, actual budgets are unlikely to allow this, which could put companies at risk again.

The solution: Flexibility of the IT Infrastructure – Not Always in the Cloud

In order to be successful in the second half of the year. And at the same time to prepare for the second possible wave of the epidemic, the procurement approach for the storage infrastructure must first be changed, and moving the entire infrastructure to the cloud is not the right solution.

While the cloud enables direct access to infrastructure, without waiting times and hurdles in the procurement process, its use means significantly higher operating expenses (OpEx). Most organizations prefer Capital Expenditure (CapEx) because it improves the company’s activity. Spending on the cloud compared to spending on an on-premises data center can be two to six times more (depending on what is being compared).

In these challenging times, companies confront a dilemma. They want to use the cloud’s advantages. And, only expand their IT resources when there is sufficient demand and reduce them again when demand falls. On the other hand, they prefer capital expenditure over business expenditure. The solution, therefore, lies in a combination of both models of infrastructure procurement. In fact, many companies operate hybrid systems made up of private and public clouds.

Furthermore, in the coming months, suppliers will have to offer their customers both business and operational flexibility. Because they increasingly need the ability to buy infrastructure at short notice. And change the usage model at any point in time. And not just every few years when they bring huge storage infrastructures for millions.

In a state of uncertainty, we have to be flexible. The storage infrastructure is the bottleneck. And companies that fail to make their storage systems more flexible will pay a high price. And, if they have to switch to the cloud due to a lack of alternatives.

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