In many aspects of our lives, we are advised to make the large investment rather than purchase piecemeal. You’ve likely heard the conversation in your local pub about how renting is a racket and to do so would be the equivalent of ‘throwing your money down the drain’. That the smarter move is to buy property and pay into a mortgage; you (eventually) acquire something tangible – it’s an investment, something you own. Even when it comes to shopping for groceries or household items, the advice is to buy in bulk, to stock up – so, it seems, economies of scale are not just something for a company’s CFO to be concerned with.
The business concept of capital expenditure (Capex) runs on this premise, too. The purpose of incurring a large business expense is with a view to creating future benefit, and likely tied to the cost-advantage from business expansion – i.e. if you buy a bigger machine, you can produce more – allowing you to eventually move to a bigger premises or location, thus increasing your output over and again. The list of capital expenditure ranges from buying new assets like buildings, machinery and equipment to upgrading existing facilities to increase their value as an asset. One of these assets that has always been seen as capital expenditure is your IT environment.
But what if you could expand your business by leveraging your IT capabilities without treating IT as a capital expenditure? What if IT was considered just another of your utilities, like electricity or the wages you pay your employees? And not only that, but by investing in IT as an operational cost (Opex) you could lower costs, increase productivity and gain a significant economy of scale.
The new reality for enterprise IT
For too long companies have spent and spent on their IT investments; typically, on-premises, cumbersome hardware (like servers) can take long periods to get set up and then have to be routinely managed and updated by a full team of IT operatives. The IT team often need significant periods of time to work on upgrades or customisations – which can lead to downtime for end users, which in turn leads to reduced productivity and sometimes even a significant increase in employee frustration. Today, we’ll discuss how your IT environment is much more transferable to an operational expense than you might have previously thought as well as the benefits that go along with that.
The rise and rise of Software as a Service
Thanks to the cloud, the need for heavy IT infrastructure, physical servers and other on-premises hardware – or in fact the need to own one’s computing capacity – has been significantly reduced. This allows for far more flexibility when it comes to setting a business up and is one reason why so many new businesses are being a created and seeing a lot of success in challenging established industry leaders read review. In order to respond to this, companies of all sizes need to adapt – the business landscape is changing, and along with it are our processes for success.
The benefits of IT as a utility
With Software as a Service (SaaS) becoming ‘the norm’, it’s easier than ever to treat IT as an operational expense. This essentially means you only pay for what you need. By upgrading or migrating to Office 365, for example, you can build an extremely functional IT environment that exists in one place and is automatically updated to ensure you and your users are working with the latest versions of your favourite tools and solutions. By realigning IT into a utility and treating it as an Opex, you can make smart cost-based decisions.
IT needs all in one place
Office 365 takes all the latest versions of Microsoft’s solutions and makes them available all from a central location at the click of a button. The app launcher gives your employees the tools they need on a plate. If users can move from app to app easily, and can work and communicate seamlessly, there’s a good chance you will see productivity begin to reach record highs.
Invisible infrastructure, visible costs
By moving your IT environment to SaaS, the cost of your infrastructure is significantly reduced. That’s because Office 365 operates entirely in the cloud, meaning you get all the benefits of a fully functioning productivity solution without any of the upfront expenses and heavy maintenance time (and expense) associated with an on-premises environment. Along with that, Office 365 is licenced to each individual user so you can predict exactly how much the platform will cost.
Build your IT to scale
Along with reduced infrastructure and only paying for the IT you use, Office 365 gives you the ability to rapidly scale your IT environment up and down depending on your business’s circumstances and growth.
Boost productivity and earn ROI
In the cloud, we can get our work done any time, any place. But more than that, we’re able to share our efforts with each other and work together closely even if we’re not in the same physical location. This means you can boost productivity and your return on investment for Office 356 can continually grow, which may, in turn, enable you to expand your business and continue the cycle of success.
To find out more how your business could benefit by treating your IT environment as a utility, contact Consortium here