2016 IT Budget: Cloud Migration and Business Technology Objectives
Forrester IT budget recommendations for 2015 to 2016 talked extensively about “tech MOOSE”: maintain and operate the tech organization, systems, and equipment. In other words, it’s your budget to maintain the status quo.
In The Global Tech Market Outlook For 2015 To 2016, Forrester analysts stated:
“In general, tech MOOSE represents between two-thirds and three-quarters of the typical tech budget and a similar proportion of total tech spending in a country or region.”
If you were spending the vast majority of your company’s 2015 IT budget this way, it’s time to rethink your budget for 2016.
Invest in Business Technology (BT) Instead
By driving down maintenance and operations costs in 2016, you will make room for more customer-centric business technology, systems, and processes. Forrester stated:
“BT is rising in prominence because, in an age of more empowered customers who exhibit preferences for digital engagement, firms need to pay more attention to attracting, serving, and retaining these customers, or they will lose them to competitors. BT goods and services play that role and so will attract greater investment.”
In other words, your 2016 budget should focus on products and services that enhance your relationship with your customer, rather than on replacing or expanding your internal infrastructure. This makes a lot of sense when you consider the devices associated with the Internet of Things (IoT), 3D printers, smart machines, drone delivery and other leading-edge technologies that have made their appearance in recent years. New technologies are enabling customers to purchase and receive products and services instantly, providing the companies that invested in them with significant differentiators over their competition.
The aforementioned customer-centric capabilities can be expensive. If you budgeted heavily for hardware in 2015, you may not have had the resources necessary to invest in BT. What happens if your 2016 IT budget leans in the same direction? How far behind can you afford your customer relationship capabilities to fall, before they become a significant impediment to revenue?
At Peak 10, we’ve invested in customer-centric capabilities with our new customer portal, which puts the functionality and information customers need for managing their account and services, at their fingertips. To allow for more options and flexibility, customers have self-service access to support tickets, usage reports, various payment methods and the ability to manage cloud resources and much more. It’s part of our culture of excellent customer service and continuous improvement.
Take Application and Software Development to the Cloud
Cloud usage can free up budget dollars to purchase BT software. It can also enable the use of this software far better than the distributed client/server model. These services are increasingly available purely on a SaaS basis. You need an infrastructure and architecture capable of scaling with those products and services. Forrester stated:
“Using cloud platform services as a complement to on-premises server and storage systems makes sense for peak load demands and special projects.”
Migration to the cloud can also save money in your budget by reducing pricey hardware purchases, enabling you to invest in customer relationship BT. The benefits are many.
We believe that following Forrester’s tips for tech budget success can help you:
- Produce significant differentiators between your customer interface and that of your competition
- Protect your data in the event of a disaster
- Increase uptime
- Assist with revenue growth
- Be agile in an ever-changing competitive landscape
It’s all possible by investing in new projects, rather than fixing broken or aging machines that you don’t have room for anyway.
If you didn’t have the opportunity to make the investment in BT that you wanted to in 2015, make your 2016 IT budget focus on the future rather than the past.
Forrester “The Global Tech Market Outlook for 2015 to 2016” by Andrew Bartels, January 7, 2015.