February 15th, 2018 by adminWhen it comes to your business IT expenditures, budget efficiency will always be a strategic focus. After all, technology can be as expensive as it is crucial in optimizing your business operations. And in recent years the level of that technology has increased at exponential rates that would have been unthinkable even five years ago. Which is why for most businesses it makes good sense to shift their IT spending habits away from costly upfront capital expenditures (CAPEX) to a pay-as-you-go operating expenditures model (OPEX). Shifting to cloud services means shifting away from a CAPEX model to an OPEX model for your IT. Let’s take a look at two of the main reasons CAPEX might not be a good fit for your business IT spending. While we're at it, let's also look at the OPEX-based solutions that eliminate these potential problems.
High Upfront Technology Investments are Difficult to RecoverThe one constant in technology is that it will change. With a CAPEX strategy to your IT investments, it’s easy to miss out on incredible advances just beyond the horizon. This places your business at a competitive disadvantage. Today’s standard equipment can be tomorrow’s outdated dinosaur. Often this means that your equipment becomes either inferior or obsolete long before you’ve recouped the high upfront investment in things like server stacks and other infrastructure equipment. Being stuck with outdated or poorly adapted equipment can hinder business performance. It can also limit your ability to grow without additional CAPEX investments to support changes in your team, your offering or your market.
Solution: Cloud-Based InfrastructureShifting to cloud computing for your infrastructure needs eliminates the risks of outdated equipment and frees you from in-house security and oversight. Instead of making costly upfront infrastructure investments, you rent your IT infrastructure from a Managed Services Provider (MSP). The MSP then carries the cost and risk of upgrades and maintenance. They also take over responsibility for securing your network and overseeing performance.
Buying Expensive Software Upfront Is Costly and LimitingPurchasing software up front and installing it on your local equipment takes a high up-front investment. You're then responsible for all the updates and ongoing licensing. It also limits program access to the individual machines that have the software installed. This lack of flexibility and the complexity of updating software on every single machine can consume additional time and resources beyond the initial investment. It also slows productivity and leads to inconsistent results.
Solution: Cloud-Based Software and ServicesThe cloud shifts responsibility for software updates, upgrades and licensing to the MSP for a monthly fee. This pay-as-you-go transition offers greater cost control while ensuring greater scalability to accommodate growth. Accessing programs through the cloud provides the mobility to work from anywhere while accessing your software from any device. This means that projects and documents are available to update in real time with immediate access to those changes company-wide.
Goodbye CAPEX, Hello Mobility, Flexibility, and ScalabilityCloud computing will dominate the future of business infrastructure. With technology advancing at lightning speed and the entire workplace structure influx, it makes sense to switch over to an OPEX-based IT strategy. Powerful mobility, greater flexibility, and unlimited scalability are only the beginnings of what cloud computing can potentially offer your business. The details depend on your specific IT needs. Reaching out to a qualified MSP to assess your network and needs can reveal a whole host of custom-tailored solutions. We at IPRO are happy to help answer any questions you might have. Contact us if you’d like to discuss the issue further.
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