Collaborate to remove complexity

IT has become an integral aspect of any business. No longer should it, or can it, be confined to just one employee, or even a single department. IT is both essential and heavily involved in every aspect of a business; it provides a foundation for all processes, and, truly, it is the lifeblood of any organisation.

“By outsourcing such services, companies place vital systems in the hands of industry experts”

Given its importance in the success of a business, the cost of managing a proficient IT system continues to grow. So complex and expensive to maintain are the numerous applications – and the level of expertise required in particular fields to keep IT systems up to scratch – that countless companies ignore the pressing need for improved implementation; few can afford to do it all (and well) in-house.

Fortunately, however, there is an approach that can remove the complexity and enhance quality and speed to market, all while reducing costs: managing infrastructure through the cloud.

Securing reliability Some of the biggest players in tech are now offering the solution to a company’s ever-growing list of IT requirements, through the form of managed services. Cloud managed services can encompass a vast array of business needs, from managing databases to security and even applications such as ERP.

Companies such as IBM help thousands of clients set up and manage (among other things) scalable SAP software landscapes in the cloud, potentially delivering cost savings of 20 to 25 percent over five years versus traditional self-management and operation of SAP software. “The cloud managed services delivery model allows companies to lead with a more flexible OPEX model”, explained Susan Volkmann, Head of Cloud Managed Services at IBM. “But it is not just financial motivations these companies are driven by. Improved and scalable technology supporting their business requirements gives them new revenue streams or helps them unlock new clients.” Refocusing efforts on the core business of the company is one of the great advantages of managed services. “We have made the right decision in choosing IBM to provide higher quality services to our customers all over the world”, said Ryuzo Morita, Director of KYOCERA Document Solutions.

By outsourcing such services, companies place vital systems in the hands of industry experts – teams with a wealth of dedicated resources and talent – to an extent that is simply not practical, nor affordable, in-house. Moreover, doing so ensures a greater sense of business continuity, which in turn enhances the level of service offered to their clients.

This ability to instil a sense of reliability is vital in competitive markets, particularly given the mounting threat and destructive nature of cyber-attacks. Today, a company’s reputation, honed over decades, can be devastated in a moment. In an event where, say, the personal records of clients are stolen, the news can spread across global media at the click of a button.

Flying higher While many companies are slow to adopt managed services, either through fear of passing such control over to a third party or simply inertia, there are some that are taking the leap forward. A case to note is Deutsche Lufthansa, one of the world’s leading airline carriers. Known for its reliability and outstanding customer service at competitive prices, in many ways Lufthansa stands alone in the aviation industry. To further consolidate this reputation with clients across the globe, in August 2015, Lufthansa adopted IBM’s managed services.

“Today, a company’s reputation, honed over decades, can be devastated in a moment”

The group’s primary aim was to improve the customer experience on the many websites that fall under the Lufthansa umbrella, which include Swiss International Airlines, Germanwings, JetBlue Airways, Luxair and Brussels Airlines. In addition to launching a reengineering initiative for its online platforms and expanding its hosting infrastructure, Lufthansa also sought to establish an innovative content management system that demonstrated greater functionality than its pre-existing systems. By outsourcing its online service delivery, Lufthansa was able to provide its customers a cutting-edge, personalised experience in 12 languages across 94 countries. The company’s profitability was bolstered as a result of a growing number of people booking online, together with a better online service functionality that was achieved at a reduced cost. Opting for cloud managed services also enhanced Lufthansa’s ability to expand with flexibility, while still maintaining a reliable hosting infrastructure that can support variable traffic demands. As such, managed services have not only helped Lufthansa to deal with the problems of today, particularly those that prevail in such a highly competitive industry, it has prepared it for those of the future as well.

Naturally, there will be those that prefer to conduct IT systems in-house, but there will soon come a day when this is no longer an option. As big data continues to expand at an exponential rate, particularly through the Internet of Things, and as more services and products become automated, companies must transfer these systems to an external party in order to maintain their own focus and core objectives, whatever those may be.