IT Brief Australia logo
Story image

Legacy IT investments might be holding you back: Is cloud the answer?

Technology lock-ins often hold organisations back from achieving greater success, but cloud solutions are the answer, according to Fronde, the Auckland based software company.

The company says, one of the single biggest barriers to an organisation’s ability to adopt a digital strategy is the impact of capital depreciation and multi-year licencing contracts from legacy IT investments.

James Valentine, Fronde chief technology officer, says, “Nimble start-ups are using technologies like cloud, mobile, social media, the Internet of Things, and analytics to create new ways to take market share away from traditional, local-based businesses.

“Traditional businesses must invest in digital transformation programmes both to adapt to the threat and to capitalise on the growth opportunities these new technologies can present.”

“Unfortunately for established businesses, they often rely on legacy systems that are neither easy nor cheap to replace. Compared with start-ups, who are not locked into any technology, this weakens traditional businesses,” he says.

Standard procurement practices include multi-year software licencing agreements and capital investment. These agreements cannot usually be changed if the company experiences operational or strategic business changes, locking the organisation into potentially high residual costs, Fronde says.

According to Valentine, cloud technologies are the answer as they provide access to infrastructure and software on a pay-as-you-go basis, and you can scale up and down fast as needs dictate.

“Companies who let themselves be locked in to on-premise equipment or software licencing agreements will find it difficult to accelerate digital transformation initiatives, which in turn makes it difficult to compete in the current marketplace. It is crucial for organisations to break the cycle of lock-in and retain freedom of choice when it comes to technology, or risk being surpassed by the new, agile start-ups,” he says.

Story image
Workday announces new capabilities for digital transformation solution
Workday has added new orchestration, data and logic capabilities in its Workday Extend solution, the company has announced, with an aim to help organisations advance their digital acceleration efforts and unlock new business value.More
Story image
Dynatrace builds 500+ integrations into Software Intelligence Hub
"We are providing customers with easy access to a huge array of technologies that are automatically discovered, and we are constantly adding new ones.”More
Story image
Enterprises prioritise customer data protection but continue to leave it exposed
“Breaches of personal information strike at the heart of the relationship between enterprises and their customers."More
Story image
The ultimate remote working hardware and software kit
The Poly Studio P5 kit includes a quality webcam and a stereo headset, as well as cloud management software, Poly Lens, which provides robust tools to manage and track devices from anywhere.More
Story image
Transforming the finance department: is your enterprise trucking or trailing?
Wondering if your organisation has been as aggressive as it could be in embracing automation and adopting digital technologies? Check your progress against these benchmarks, advises BlackLine regional vice president for ANZ Claudia Pirko.More
Story image
Interview: SAS outlines the seven AI-based trends you'll see in 2021
Artificial intelligence has, let's face it, been the subject of much hype, of experimentation, and in some cases, pipe dreams.More