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When to make the move to the cloud: typical inflection points

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For newly emerging investment firms or long-standing established ones, the choice to adopt a cloud-based architecture is becoming an easy one. Few firms have a business model where an in-house Comm. Room makes strategic or economic sense. And even for those who have the means to do so, managing and maintaining all levels of IT on-premise may not always make the most business sense.

Whether it’s the entirety of your technology environment or a few select applications, most firms find that it’s worth considering a cloud platform to leverage a predictable, scalable and feature-rich infrastructure. But when is the right time to make a move so firms avoid unnecessary disruption?  The following three scenarios represent ideal times to make the change.

1) Office Relocation: Many companies are understandably reluctant to take on the expense of moving a massive, expensive, and often outdated infrastructure to a new location – particularly if the company expects to phase out certain portions or components in the following 24-36 months. Remember: the typical lifespan for hardware is only 3-4 years (see below). In such cases, migrating to the cloud before relocating offices can be a smart move.  

2) New Applications: Larger firms with larger application portfolios often find that a transitional strategy is best. Abrupt migrations to the cloud can be disruptive. In those instances, financial firms find that new applications can start in the cloud – no subsequent migration needed. And those deployments are faster. While few IT portfolios will see 100 percent turnover in the short term, this strategy can simplify any migration of on-premise applications to the cloud by minimising the work required when the firm finally makes its move.  

3) Technology Refresh: Similarly, many firms find that when the time comes to update infrastructure or upgrade applications, that inflection point represents an excellent opportunity to perform a cost-benefit analysis. In most cases, firms find that initiating a cloud migration for that particular component of the IT portfolio is the best choice. And since either choice introduces change, there’s no added burden to making that transition.  

With more importance on the security and reliability of their infrastructures, firms realise that a world-class cloud infrastructure provides a rapid, low-risk, low-capital solution that enables them to focus on what matters most. With cloud computing, they manage investments, not server production or resource management, enabling them to compete more effectively and improve operational and financial performance.   

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