By: Brian Austin
Posted on:
Categories: Strategy
Tags: Costs

Many small businesses believe that it’s too expensive to outsource most of the day to day technical headaches.

This belief cripples many businesses who spend valuable resources focused on solving the day to day operational challenges of maintaining technical systems. Most of those businesses fail to innovate quickly, sometimes to the point of product stagnation. A few of those businesses even fail as a result.

But it doesn’t need to be this way. By 2017, the average cloud provider has figured out how to offer a multitude of managed platforms that businesses can shift on to. Businesses no longer need maintain a fleet of hardware based servers that act up and eventually fail. Further, businesses no longer need to employ dozens of hardware specialists to keep everything running. But the total cost of ownership of legacy technology systems has not decreased, instead it has skyrocketed.

BUT WHY?

Because the average legacy technology system was not designed to take advantage of the elastic cloud. Further, most systems were designed long before “As a Service” offerings and have instead stitched together a patchwork of open source and proprietary technologies. The systems are ill equipped to take advantage of the key cost differentiator, the ability to pay only for what you need and use.

HOW DO ENTERPRISES SOLVE THIS PROBLEM?

Typically a large enterprise will have a group of engineers dedicated to the task of application and service migration. Highly focused product teams of analyst, engineers, and architects will deconstruct the technology and execute multiple cycles of enhancements. In some cases entire systems are evolved to utilize new core technologies.

THE REAL COST OF CLOUD

The cost of migration is high, sometimes too high for the margins of a small technology business. Whether a lack of capital, human skill, or knowledge most small technology firms face a far greater cost, opportunity cost. A business can rarely divert resources away from growing and defending revenue generation and instead focus on a series of prolonged cloud migration projects.

How do small technology businesses fully leverage the cloud in spite of this reality? Very carefully. That is the purposed of this project, and that is a major topic of discussion of the content you will find on this site.

To date I have found no resource specifically designed for small technologies businesses. Most articles, podcasts, webinars and vendor presentations are geared to enterprise solutions. Many of the solutions are designed for fully formed business architectures and firms that staff numerous technical resources to implement systems intended for millions of transactions.

The problem is that most smaller technology firms have far more pressing concerns than scaling to millions of users. In most cases, smaller firms focus on more specialty and niche offerings with higher margins. Most of the time, speed to market and the ability to flexibly react to changing market conditions are of greater value than early optimization.