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Data Shows IT Modernization is Critical for Business

The companies that succeed in today’s data-driven world must adopt new models and methods, relying heavily on technology to deliver digitally enhanced products and services. That means deploying a secure, cloud-ready infrastructure – modern software, optimized for the latest high-performance hardware.

by Raphael Meyerowitz, Vice President, Office of the CTO, Presidio, Tuesday, 27 Nov 2018
Data Shows IT Modernization is Critical for Business
Data Shows IT Modernization is Critical for Business

Modern business models need a modern IT infrastructure

Running a business on aging IT hardware in today’s digital world is like driving a vintage sedan through an unfamiliar city:

  • New cars zip around you with agility and purpose, guided by a GPS.
  • Some vehicles are even autonomous, intelligent and self-adjusting.
  • Your gas mileage isn’t very good, requiring frequent, costly refills, and you worry about breaking down (again).
  • Careful where you park: your old-style door locks won’t deter thieves.

The lesson is clear: navigating a modern business environment – avoiding hazards, closing on opportunities – requires new models and methods that rely heavily on technology to deliver digitally enhanced products and services. In short, the success of your overall business transformation plan is inextricably linked to achieving data center modernization.

Businesses can’t compete on outdated infrastructure

In fact, 71% of IT organizations cite legacy infrastructure as their biggest barrier to transformation. Companies running on older infrastructures are found to experience a 6x slower product innovation rate and time to market. After four years in operation, those aging systems are hemorrhaging money in the form of lagging performance that hinders innovation, sharply rising maintenance costs, network bottlenecks, security vulnerabilities, and compliance issues.

More worrisome, yesterday’s technologies equate to tomorrow’s lost opportunities that’ll be seized by quicker, more agile competitors. The result: during the next decade, 75% of the S&P 500 will consist of companies you’ve never heard of – because they’ll be new. But only 25% of the names currently listed will still be around.

It’s time to put together a serious plan for IT modernization, starting with a data center transformation – because if you fail to modernize your hardware assets along with software, you’ll always be in repair mode, never able to move toward a truly agile and secure data center.

Making the move to IT modernization: here’s where you start

  • Define a clear path to the hybrid cloud – To appreciate the prevalence of cloud computing in the modern business age, consider that the majority of Presidio’s products and services today involve some aspect of hybrid cloud, whether it’s backing up to the cloud, or even helping customers become entirely cloud-based. Equipped with hybrid and multi-cloud capabilities, IT organizations can allocate and scale resources flexibly and efficiently: responding to changing application demands, introducing new products and services quickly, even controlling which workloads are cloud based and which are kept on-premises.

    But, getting to the cloud first requires modernizing your data center to ensure you have the right software tools. And, it means hiring and training an operating staff capable of managing those applications. It’s imperative that old-school datacenters evolve beyond their on-prem roots to embrace the flexibility and agility that comes with adopting a hybrid cloud strategy.
  • Develop a stronger security framework Security is a paramount consideration for Presidio, and with good reason: the cost of cyber-breaches is estimated to quadruple every four years, possibly reaching $400 billion in the US alone this year. Forbes reports that 69% of senior executives assert that digital transformation is forcing them to rethink their approach to cybersecurity.

    IT modernization provides hardware-based security for root of trust protection, as well as full data encryption for improved security from data center to hybrid cloud to edge, drastically reducing the exposure window for hackers, malware and other attacks. To help clients address these issues proactively, the Presidio Next Generation Risk Management  solution provides a ready-made extension to their in-house capabilities through risk assessments and detailed reporting, process and program development, and security training services. Our software security team provides customers with needed incident response and compliance, as well as assessments and advice on hybrid/multi-cloud security.
  • Deploy a future-forward digital infrastructure – To support expanding workloads and DevOps practices, IT organizations require an agile, converged infrastructure suited for a breadth of compute needs. By setting this foundation in place, you can enjoy the competitive capabilities enabled by hyperconvergence, virtualization, and hybrid cloud. To illustrate the performance benefits and cost savings of IT modernization, consider a 10-year-old legacy server vs. a brand-new system: immediately out of the box you’ve got a smaller hardware footprint with significantly lower power and cooling requirements. The new server is powered by the Intel® Xeon® Scalable processor with up to 28 cores for dramatically greater compute performance. It might incorporate Intel® Optane™ DC Persistent Memory, a new class of memory and storage that moves stored data closer to the processor for faster retrieval, reducing latencies and enhancing performance. Networking capacity is vastly increased with high-bandwidth 10/25/40 GbE Intel® Ethernet network adapters. And, you’ll save on software licenses as well as provisioning time and infrastructure management.

Modernization is a ‘must,’ not a ‘maybe’

If your business is still running on legacy infrastructure, you’re running on borrowed time. From rising maintenance costs and increasing security vulnerabilities to lagging performance and lost opportunities, a hardware/software refresh is in your future – because it has to be.

Here’s yet another reason to upgrade: Microsoft has announced the imminent end of support for a pair of decade-old server products: support ends for Windows Server 2008 and 2008 R2 on Jan. 28, 2020; it comes even sooner for SQL Server 2008 and 2008 R2: July 9, 2019. These EOS announcements are only the latest indicators that remaining on legacy systems will end up costing you more money – and they won’t be the last. If you want to compete and thrive in the long term, IT modernization becomes a clear and growing necessity.

Presidio’s strategic consulting teams help organizations leverage new digital technologies to create better customer experiences, tap fresh revenue streams, and realize their competitive advantage. We’ll assess your IT environment and identify best solutions for implementing effective data center modernization – eliminating complexity while helping overburdened IT staff to maximize resources, achieve measurable performance gains, reduce TCO, and maneuver with confidence through a digital, data-driven world.

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Presidio is a leading North American IT solutions provider focused on Digital Infrastructure, Business Analytics, Cloud, Security & Emerging solutions. We deliver this technology expertise through a full life cycle model of professional, managed, and support services including strategy, consulting, implementation and design. By taking the time to deeply understand how our clients define success, we help them harness technology advances, simplify IT complexity and optimize their environments today while enabling future applications, user experiences, and revenue models.
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