Focus on growth with DRaaS
The top three business initiatives remain unchanged from last year. Digital transformation, cybersecurity, and cloud remain relevant because they help reduce IT costs and enable new business strategies and models. They also make new products and services possible and create new streams of revenue.
Unfortunately, IT spending is standing on its head, with 64% spent running the business and 36% on growth and innovation. Cloud adoption and DRaaS help in better aligning IT spending and business objectives.
Nothing highlights the urgency of reigning in costs more than the 3X increase in enterprises’ cost savings initiatives over last year.1
Is now the time for DRaaS?
The argument in favor of cloud alternatives is over, and the time to embrace DRaaS is overdue. By 2023, more than half of x86 servers’ workloads in internal data centers will use the public cloud for DR.2 Furthermore, cloud software will make up 30% of total budgets surpassing the 24% earmarked for on-premises software. 62% of companies will reduce their use of internal data centers in the next two years.2
The shift to cloud and SaaS consumption is driven by powerful technology and business changes that brought us to the tipping point:
- Runaway costs. Lack of real-time visibility into IT spend leads to budget overruns in more than 24% of It projects, with about 30% of spend going to waste.3 Manual processes and the absence of quality data complicate cost optimizing initiatives. There is light at the end of this tunnel. Cloud adoption and IT modernization helped 60% of companies realize cost efficiencies and savings.4
- Data sprawl. IDC estimates that the amount of digital data to be created over the next five years will be greater than that twice the amount of data created since the advent of digital storage.” The cloud makes managing exponential data growth effortless.5
- Cyber threats. Protecting against cyberattacks requires an air-tight security posture and reliable DR plans. While the impact of cyberattacks is evident today, analysts expected that one organization would fall victim to ransomware every 11 seconds by the end of 2021.6
- Skillset gap. The increase in cloud adoption and rising IT spending exacerbates the acute shortage of technical IT talent worldwide. Adopting cloud and DRaaS reduces IT overhead and budgets.
Improve visibility and control spend
The benefits of adopting cloud and DRaaS solutions are numerous and cover more than the core cost savings and business continuity.
- Visibility and cost savings. Financial reports and are available in real-time, offering better-informed decisions. The cloud consumption-based utility model helped 60% of companies improve financial gains and efficiencies by moving away from Capex investments to budget-friendly OpEx.7
- Optimized cloud costs. Fine-tune cloud resources to applications requirements to avoid over-provisioning and overspending. Cloud adoption helped companies keep IT spend to only 7.5% of revenue.8
- New revenue streams. Nearly 58% of companies could capitalize on cloud innovations and create new products and services with additive revenue streams.9
- Availability and uptime. Maintaining the business engines running is vital to business survival. About 54% of enterprises saw an improvement in business availability with cloud adoption.10
- Higher customer satisfaction. Customer satisfaction is job one for everyone. Embracing the cloud helped 56% of companies improve customer experience and satisfaction.11
- Turn data into business value. Data is the most valuable digital asset. Nearly 56% of companies using the cloud model improved their ability to extract business value from data. Visibility, accessibility and data analytics tools facilitate growing business value.12
- Maintain security and compliance. Companies can use cloud DRaaS to respond to audits and demonstrate compliance with data regulations through proper reporting and documentation. Security remains the top challenge for 81% of organizations.13
2. Gartner March 2021. “Market Guide for Consumption-Based Pricing for Data Center infrastructure.”
4, 7, 9-12. IDG 2020. “The State of IT Modernization 2020.”
3,13. Flexera 2021. “Flexera 2021 Stare of the Cloud.”
6. Gartner April 2020. “Survey Analysis. IT Disaster Recovery Trends and Benchmarks.”