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Are you pursuing new customers? Are you trying to reduce your total cost of technology ownership? Do you need access to capabilities you don’t possess in-house? Is management looking for ways to facilitate innovation?
If you are facing any of these challenges, IBM’s hybrid cloud solutions can help.
“Tailoring Hybrid Cloud,” our latest IBM Institute for Business Value (IBV) study, confirms that organizations are increasingly turning to hybrid clouds to achieve their business objectives. Let’s talk about the top four reasons they’re making the move.
Hybrid cloud is cost-efficient
Fifty-four percent of executives surveyed said the top reason for implementing hybrid cloud was to lower the total cost of technology ownership. Hybrid clouds reduce costs by taking advantage of the economies of scale that cloud data centers provide. This means lower hardware costs, lower power costs, lower facilities costs, and lower infrastructure staffing costs.
Instead of locking up funds in soon-to-be outmoded capital equipment, cash generated from business success can be reinvested directly back into near-term profit growth. When deciding which workloads should be moved to cloud, over half of the executives surveyed identified cost as the most important criteria.
Hybrid cloud improves operational efficiency
Cloud enables organizations to quickly provision resources across an entire ecosystem to rapidly assemble tailor-made solutions for critical business needs. This greatly reduces time spent on problem-solving while enhancing the agility of enterprises in responding to constantly shifting market demands.
In the realm of IT, cloud enables operational efficiency by optimizing the latest infrastructure, middleware, and apps, rather than tolerating subpar legacy systems. For example, during online financial transaction processing, the latest third-party cloud-based API service can be plugged in to verify user identity.
Hybrid cloud increases customer engagement
To attract and delight customers, cloud’s agile attributes enable faster time-to-market for new products and services. For example, retailers use clouds to tempt consumers with tailored promotions customized to their unique buying behaviors. Healthcare providers address patient concerns 24/7 with virtual medical assistance. Insurance companies become trusted risk managers by warning policyholders of incoming destructive weather and recommend preventive actions that proactively avoid insurance claims altogether.
Organizations plan to migrate many types of applications in the next two years:
Moving to a software-as-a-service (SaaS) model allows organizations to implement market-leading solutions quickly with minimal impact on existing infrastructure. Our survey found that customer support is the top area that two-thirds of executives are targeting to migrate to a SaaS model within two years.
Hybrid cloud is innovative
Cloud adoption fosters innovation because it can transcend geographic, industry, organization, and operations barriers. Cloud accelerates innovation by enabling quick prototyping of new ideas for fast experimentation. At least 90 percent of executives surveyed said their most successful cloud initiatives had already significantly or moderately achieved expansion into new industries, creation of new revenue streams, and invention of new business models.
Cloud has clearly evolved from a technological platform to an integral part of business enablement.
How do you adopt hybrid cloud for your business?
To get started, ask yourself these questions:
- How strategically would you like to be using hybrid cloud?
- What is the optimal mix of public and private architecture for your organization?
- How effectively are you already scaling your business using cloud?
For more of our findings on how hybrid cloud can answer an enterprise’s unique needs—including more recommendations for getting started—download “Tailoring Hybrid Cloud: Designing the Right Mix for Innovation, Efficiency, and Growth.”
Have you read the study and want to take the next step? Join us at InterConnect 2017! You’ll learn how to leverage multiple cloud environments and optimize private infrastructure applications and solutions. Experts will explain how they created and connected applications, APIs, and microservices while extending their IT infrastructure to unlock value and accelerate innovation.