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Tomorrow’s IT Procurement Strategy

Implications for Today’s Cloud Consumption Models

IT environments are becoming increasingly complex and hybrid as organizations understandably take a stepped approach to cloud services. According to a February 2019 Rightscale survey of 786 IT executives, 84% prefer a multi-cloud strategy and 58% now incorporate a hybrid cloud strategy, up from 51% in 2018. This trend is being driven by the clear overall industry movement towards cloud, but also the realization that not all workloads are compatible or make sense to move to the public cloud.

In order to make the best decision on migrating from traditional IT infrastructure to a cloud environment, it helps to look to the future and have an understanding of the diverse implications that will drive your future IT procurement strategy. The most significant of these include:

  1. New accounting guidelines that are moving OPEX leases to the balance sheet
  2. New tax laws changing depreciation guidelines
  3. Huge increases in collected data driving the need to stand up capacity in hours, not months
  4. Data sovereignty issues that restrict the movement of data
  5. Security, compliance, and ease-of-access issues that drive private cloud over public cloud storage decisions
  6. The balance of accurate consumption pattern forecasting with the unknowns that will challenge the speed and agility required to support and drive new business

These implications and more are discussed in the whitepaper, “Total Value of Ownership (TVO)”, which also challenges you to rethink the way you assess your procurement strategy for cloud-based resources. To date, Total Cost of Ownership (TCO) has been used to measure the return on traditional legacy IT investment but today’s new cloud model requires a broader, longer-term approach balancing both costs AND benefits. LIT is at the forefront of enabling the delivery of private cloud resources in a public cloud-like consumption model that is asset-light to our customers and delivers the optimal infrastructure solution for today’s challenging IT needs. Hybrid doesn’t have to be complex.

Written by Robert Williams