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IT Budget And Cloud Services: Five Mistakes To Avoid

What happens when you start using the cloud in your company. Five Mistakes to Avoid in IT Budgeting

More and more companies are breaking the delay and adopting the cloud in significant areas of business processes, investing part of the IT budget in migrations and in the use of new services.

Regardless of whether or not efficient data center infrastructures are present, cloud services reduce the start-up time of new projects, offer flexibility in increasing or reducing processing power (and related costs) in concert with the needs of the business.

In particular, they help to contain fixed costs, accelerating corporate modernization and the digitization of new distributed processes involving suppliers, commercial channels and final consumers.

The cloud forces those who employ it to review IT supplies and budgets, to reassign capital expenditure as operating costs (Opex) with repercussions in the budget and in access to finance.

In a context that, according to the data of the Observatories of the School of Management of the Politecnico di Milano, this year sees the forecast of ICT expenditure of Italian companies rise to 4%, the cloud application park has reached the share of 44% and promises an upcoming overtaking of the on-premise one.

The cloud is already a reality in enterprises, we see below five mistakes not to be made in defining IT budgets. The first mistake is separating the IT budget from the business.

With the digital transformation of products and services, there is a close relationship between IT and business performance that must also be declined at the level of planning, organizational aspects and spending governance.

The second mistake is that the cloud is a means of reducing the IT budget. The cloud enables digital innovation by making available resources and capacities that cannot be delivered on-premise.

This triggers an increase in line-of-business demand for services and therefore in spending. The third mistake is assuming that moving to the cloud is a piece of cake.

The economic and operational benefits are modest or nil if you migrate legacy applications or if you use software that does not take advantage of the logics of events, APIs and microservices of the cloud world.

The fourth mistake is to consider cloud services as a commodity, neglecting the analysis of all the components that contribute to operating costs.

Data transfers, services tailored to specific applications, PaaS and FaaS with which to replace more basic services (IaaS) affect the operating budget, as does the adoption of tools that allow you to adopt multicloud logic and, if necessary, to change provider with that more effective or convenient.

The fifth mistake is forgetting that the cloud changes everything: from the organization and IT culture to the methods of governance of resources, data management and security. Part of the IT budget must necessarily be invested in consulting and in the acquisition of skills for the most effective use of cloud services.

For years, BinHexS has been helping customers outsource both individual parts and entire IT infrastructures to the cloud, ensuring the easiest management through orchestrators.

Tailor-made cloud solutions and an agnostic approach to the choice of service provider help the customer to make the most of the available budget.

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