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Eliminating Expensive Suppliers (The Under Realized Benefit of Cloud)

Randy Mizzoni, SVP, Sales & Marketing

May 5, 2021

In the world of legacy technology systems and infrastructure there was a lot of vendor and supplier management – enough to keep an army of project managers and lawyers in jobs just chasing the latest status report. I think it’s often easy to forget just how much management and vendor relationships were required to keep a traditional technology environment on the road.

Think about that technology environment as a stack containing layers such as:

  1. The data center: the foundation of the stack, but fundamentally important. You need to build it and then maintain it. This means you are going to need to contract with a vendor to provide the space, or even a builder if you are building your own, then 3-4 contracts for various different ongoing maintenance.
  2. The equipment and racks: the physical infrastructure inside the data center has to be managed. You might have one overall contract for this or you might split the technology maintenance across network, service, and storage systems – each with a different specialist.
  3. Application Design: Let’s consider a system like ERP or CRM – any major system used by your business. You need to buy the system, get it modified, installed, then someone has to train your team so they know how to maintain it.
  4. Users: Everyone that needs to use this bespoke system will need training.

Sounds complex? Every installation would be different, but I estimate that you might be looking at a relationship with up to ten different suppliers to build out and maintain that data center. In my experience the average ratio for reduction is about seven to one. Think about what that means – reducing the management of seven suppliers to just one.

All this can be eliminated through the adoption of a cloud-based environment for your business and working with a single partner like WatServ to manage it.

There are some obvious and immediate benefits to this approach, including:

  • Contract management: manage one supplier rather than ten, so you don’t need an entire team of people internally just managing suppliers.
  • Eliminate contracts: it’s not just the management of the day-to-day deliverables, but all those contracts carry expectations and responsibilities too – just eliminate them.
  • Optimization: governance is simpler so you can focus more effort on process and deliverables.
  • Scale: there is no limit to the cloud-based option, you can go all the way and grow as much as you want.
  • Security: with a network of suppliers, it’s much harder to really take control of security across the entire technology stack. Simplify and gain security.

Removing contracts and suppliers from your overall day-to-day management and governance is an often-overlooked benefit of cloud-based systems, but as this example makes clear, this simplification can reduce cost, increase agility, and streamline processes – all at once. You achieve economic, but also technical and functional, benefits with this approach – it reduces your budget and just makes the management of your IT infrastructure so much easier.

One contract with Watserv can offer you the same suite of services that you might need 7-8 suppliers to manage in a legacy environment. Life can be simpler and more agile. Do you really want to be managing so many suppliers or do you want to reduce that effort and spend more time on what your company really needs to be doing to succeed?

Leave a comment here with your own thoughts on this or get in touch with me directly via my LinkedIn profile here. Follow the WatServ company page on LinkedIn to ensure you never miss our articles and commentary.

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About

WatServ is an IT solutions provider that helps clients digitally transform their business through cloud technologies and services. Founded in 2006, WatServ specializes in providing hybrid and multi-cloud solutions and hosting complex, high-availability environments for enterprise-level applications. WatServ’s unique approach to planning, migrating and managing multi-cloud environments, plus premium 24x7x365 support, enables its global customers to focus on their core business. Relying on Microsoft and Google’s public clouds, in addition to its own private cloud, the company offers an ideal managed cloud environment engineered for security, reliability and performance. With offices in Canada and the United States, and with 1000’s of users connecting from around the world, WatServ is always on. For more information, please visit www.watserv.com.

WatServ is an affiliate of Brookfield Business Partners (BBU), a public company with majority ownership by Brookfield Asset Management Inc. and listed on the New York and Toronto Stock Exchange. More information about BBU is available at www.brookfield.com.

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