The dirty secret your IT vendor wont tell you

The cloud is bad for business. The business of your traditional IT vendor that is!

 

This dirty little secret is why you're probably getting a raw deal from 'advisors' who may be holding you back from achieving the full potential of the cloud.

We don't use a traditional vendor business model. Our business is Customer First, Cloud First. We sell expertise and we high five when we save you money or make you money through technology innovation.

Why the traditional IT vendor loses if you win from total cloud adoption

1. Hardware and licence sales disappear
30-40% of revenue for a traditional IT services business used to come from selling servers, operating systems, desktops and licences.  The vast majority of businesses do not need to own a single server or backup device and can bring your own user device which takes this 'cash cow'  off the table.  You can usually get as good or better discounts buying end user hardware yourself as your IT vendor can offer, especially if you plan ahead.

2. End user support needs are minimal for a total cloud business
The vast majority of remaining revenue in traditional IT is from helpdesk.  What do you need to access cloud systems?  Windows or Mac, a web browser and potentially a remote desktop client, often local copies of Outlook, Word, Excel and PowerPoint or the Google equivalents.  Guess what, you get all of that - with support - from your Office 365 subscription.

You only needed helpdesk in the first place because of the complexity your IT provider created through the IT that you owned rather than subscribed to.

Now of course there are irritable things like printer drivers, device synchronisation and other niggles that you want personal service for and these things should be few and far between.

3. You can see through the scam when your IT vendor says they focus on technology so you can focus on business
You get it; the world is digital now and technology is your business. If you're not actively engaged in  modernising the way you do business using technology as your edge then chances are that new digital competitors are planning to take your customers away from you.  Traditional IT vendors don't have the expertise to transform your business - that's why they have not transformed their own.


4. You aren't cookie cutter any more
The more standardised each IT vendor customer is, the more tasks can be automated, and the greater the margin the IT vendor makes.  This standardisation benefits them far more than you. Even if the savings are passed on, the potential benefits you forgo by using better combinations of systems for your needs will outweigh conformance to a cookie cutter support approach.

5. Their fake cloud doesn't cut it

The cloud brings massive amounts of cost transparency and short term subscriptions that allow you to mix and match solutions, try before you buy and switch your IT technology almost instantly. 

That's not a mindset that sits well with vendors who have bundled high margin services with volume sales to sweeten the pot, locked you in to annual or longer term agreements, invoiced for annual maintenance which involves no sales effort and little actual work.  These vendors have given you  'fake cloud' offerings where you or they still have high ownership and low subscription mix and therefore limited agility.  Fake cloud is easy to spot; if you have the IT you always had, managed the same way its always been managed, just now from a new location, then you are living with fake cloud, and like any fake it is never as valuable as the genuine article.

 

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