As more and more on-premises services and technology move to the cloud, we’re seeing a shift in how businesses approach DRaaS and other XaaS solutions. Customers want their DRaaS to mimic public cloud services, where the vendor provides the entire solution for a monthly fee.
It makes sense. CapEx (capital expenditure) items are major investments and can mean less cash flow for the rest of the business, impacting short-term operations. Why purchase on premises technology and infrastructure when you can rent what you need, and shift the responsibilities of ownership and maintenance to a vendor?
Shifting from a CapEx model to an OpEx (operational expenditure) model can create a lot of opportunities internally: It frees up valuable resources that would otherwise be spent managing onsite infrastructure, it makes future spending more predictable, lowers capital costs, and reduces your need to spend money on hardware and software costs. You only pay for the capacity that you need, when you need it.
According to Gartner, worldwide IT spending is predicted to total $2.8 trillion in 2019, an increase of 3.2% from 2018. According to John-David Lovelock, research vice president at Gartner, the shift is trending towards the use of enterprise cloud services:
“While currency volatility and the potential for trade wars are still playing a part in the outlook for IT spending, it is the shift from ownership to service that is sending ripples through every segment of the forecast.”
Rather than dropping a lot of money on capital assets up front, an OpEx solution allows you to treat IT as an ongoing expense, on a recurring basis. If you’re a company considering the shift from owning your DRaaS to having a vendor provide 100% of the solution, consider the following key benefits:
Scalability: A model where your provider handles 100% of your DRaaS means you can scale up or scale down as your needs change. It means you can utilize your vendor’s resources on demand (versus your own). And it reduces your overall risk in a quickly changing technical environment because you no longer have network or security equipment to own or maintain. There are no long-term investments in technology to worry about. You pay for the capacity you need, when you need it.
IT Resources: Your talent is your most valuable asset. An OpEx model allows your provider to manage your DRaaS – that is, after all, their area of expertise – and their ability to delivery in this area frees up your IT team to focus on more strategic initiatives that bring value to the business rather than getting mired in the day-to-day operations of IT hardware and software.
Compliance: In a rapidly changing regulatory environment, there is immense pressure for companies to maintain consistent compliance. And robust infrastructure alone does not guarantee that your data and systems will be secure. By choosing a provider that holds top tier certifications like FISMA, Tier III and FedRAMP, you’re enhancing the security of your critical IT assets and data.
Built-in Redundancy: Perhaps the most critical benefit of all, your provider will invest in the infrastructure and latest technology to ensure there are no single points of failure in your DR solution. This means you no longer need to worry about your operations during a disruptive event. It also means lower costs for you and reduced risk of downtime.
If you’re interested in learning how an OpEx DR model can positively impact your business, please send us an email at email@example.com.