Decrease costs with ICT from the web

April 22, 2010

Is cloud computing merely hype? Hardly. IDC analysts are predicting a worldwide volume of USD 44.2 billion for the 2013 market. More and more large corporations are using the virtual cloud to flexibly operate their business processes according to need. By doing so they are achieving savings of up to 30%.
Today the IT landscapes of large companies consist – among other things due to mergers and acquisitions – of historically grown, heterogeneous hardware and software architectures. It’s not rare to have up to 1,000 different applications. However, operating, maintaining and updating complex IT structures eat up a large chunk of the IT budget and majorly restrict the room for required investments. The many different systems thus threaten to stifle the strategic expansion of technologies for our core business.
Especially during economic crises – but also in times of growth – companies need concepts for changing fixed costs into variable costs. By switching from a classic IT sourcing model to cloud computing, for example, companies can create more financial elbow room. Long-term investments are replaced by flexible lease costs that are adapted to the IT needs of the respective business. Users do not need their own hardware or software. High fixed costs are thus transformed into variable expenditures.
30% fewer costs, 90% more capacity utilization
With cloud computing companies obtain all of their IT resources over the web. They only pay for the services rendered by the provider that are “bookable.” These services include not only applications but network bandwidths and computing and memory resources as well, among other things.
However, the most important component for achieving cost savings is standardization, which allows the automation of large parts of IT production. This considerably decreases operating costs. For example, Forrester determined early on in the cloud computing trend that companies could decrease their capital costs for applications by up to 30%.
Cloud computing concepts only take hold if they are secure:
No one can access the network in the private cloud – with its own secure connection to the T-Systems data center – without the proper authorization. Moreover, users always know in which data center their information is processed and saved. The data and applications of each company are clearly separated from those of other customers. This way companies fulfill even the strictest of compliance requirements.
More and more large international companies are opting for dynamic net-centric sourcing: Shell, MAN, Linde and Philips are all obtaining their IT services from T-Systems according to their needs.

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