How Business Objectives Drive the Need to Modernize Compute Infrastructure

As IT infrastructure is flexed and scaled to meet ever-evolving business and user demands, enterprises the world over are realizing the need to modernize the server technology that drives the activities, applications and workloads they are running. There are also distinct cost benefits associated with smart server refreshes.


All of this is great news for you—because your business is ideally placed to guide customers on their journey towards successful IT transformation.


A new research study confirms that modernizing compute infrastructure enables companies to benefit from faster time-to-market, decreased downtime and a more secure IT platform versus legacy hardware.


Forrester Consulting conducted an online survey of 361 IT decision makers with responsibility for hardware infrastructure strategy from enterprises around the globe to evaluate the impact that modern compute infrastructure has on IT transformation.


The study found that, in order to achieve a significant competitive advantage, companies need to invest in modernizing the compute portion of their infrastructure. In fact, the modernity of an enterprise’s compute footprint has a critical impact on IT transformation—and failure to update can stunt a company’s future growth.


Modernizing compute is the foundation for IT transformation

Enterprises are continually working to keep up with the pace of increasingly demanding business needs. Of course, in any organization, there are a multitude of business priorities that require IT support to be successful.


Crucially though, the Forrester survey discovered that while there’s strong consensus that IT infrastructure is a critical backbone to reach business objectives (88% of respondents agreed it is critical to executing business priorities), a significant 73% of companies reported that they are aware that their infrastructure needs change to support their business needs. This is also one of the key foundations for successful IT transformation.


That clearly represents a massive opportunity for you and your business. It’s time to convince your customers of the need to modernize their IT infrastructure—and to demonstrate the associated cost benefits of such investment.


Customer focus priorities are a bigger driver than reducing expenditure

Business objectives are clearly driving the need for companies to modernize their compute footprint. The Forrester research found that the vast majority of business priorities are focused on customer initiatives. Companies are prioritizing reaching new customers (78%), delivering better data insights on customers (75%) and improving customer satisfaction (74%). Around 70% of the surveyed companies are actively seeking to gain a competitive edge over traditional and emerging competitors.


Updating their server-based compute footprint enables enterprises to address customer’s needs faster and 95% of respondents reported that modernized compute drives faster time-to-market – by as much as 22% on average. Interestingly, while reducing OPEX and CAPEX remains a critical consideration for most enterprises, it was not as important a driver as this customer focus.


That insight opens up a clear opportunity for you to start talking to your customers about the cost benefits of modernizing their compute infrastructure.


Decreased downtime and reduced IT security incidents

The latest Dell EMC PowerEdge servers, powered by next-generation Intel® Xeon® Scalable processors, are the bedrock of the modern data center—and a modernized compute infrastructure is the bedrock for faster, more reliable applications.


In the Forrester survey, 95% of enterprises reported that modern compute significantly reduced downtime—by an average of 27%. For a company with $100M in annual revenue and 20 mission-critical applications, every hour of downtime affecting 1,000 customers can cost $150K.2


The study also found that the security operations burden is significantly reduced for companies with a modern compute infrastructure. An impressive 93% of enterprises reported having saved time by not having to respond to as many IT security incidents. Additionally, 59% expected to experience fewer data breaches, while 50% expected less of an impact from inappropriate levels of access. On average, there was a 19% reduction in IT time spent on addressing security incidents.


Regular refresh delivers real results

Refreshing compute infrastructure regularly clearly leads to tangible business results. And the benefits far outstrip the typical costs involved. Do your customers truly understand the potential negative impact that legacy IT is having on their business performance?


> Learn more and discover the report’s key recommendations: read the paper now

Sources:

  • 2‘Identify And Estimate The Costs Of Downtime On Your Business’, Forrester Research, Inc., October 12, 2017.