Are you accumulating technological debts? – Gadget
Every business must manage and mitigate the impact of technical debt. Technology debt is the exponential accumulation of technology problems and the resulting impact of outdated practices, methodologies, processes, applications, legacy hardware, and IT infrastructure on businesses.
The result is organizational inertia, exposing the company to internal risks in terms of sustainability, security and customer loyalty. Fortunately, there are ways to mitigate tech debt risk and, with focused management, to minimize and recover from it.
Similarities can be found in the premise of technological debt similar to financial investments. As an individual, if we had invested in the right stock (in this case, IT and cloud hosting), at the right time (say the last on-premise renewal cycle of the company), we could have had gains of up to 100% (considered in terms of the real cost of ownership [TCO]) within the past five years. Instead, the business is still struggling with legacy IT issues.
- Use of financial resources for server rooms, power, outdated backups and disaster recovery practices, incompatible with business needs.
- Manually apply governance and security to the level of sophistication required for today’s cybersecurity challenges.
- Manually correct, manage and maintain infrastructure as well as operating systems, increasing inefficiencies alongside the pressures of maintaining scarce skills and escalating labor costs.
- Overprovisioning the 24/7 server infrastructure for worst-case scenarios equates to unnecessarily higher costs. Because this availability scale is only required for 5% of the year.
- Missed opportunities to refactor renewal cycles and reallocate IT technology and licensing resources due to outdated operating models.
At the same time, technology continued to evolve.
- Most software updates are iterative.
- Operating systems no longer support legacy technologies.
- The world has shifted to a hybrid work model, and with it, the habits of the workforce have changed to become predominantly digital.
- Consumers’ engagements with businesses have evolved to become increasingly digital.
- Smart companies have reinvested, redeployed and upgraded their workforce for the digital economy.
Lagging behind or ahead of the curve?
As such, the role of IT has mutated to become a critical business catalyst, providing the infrastructure on which the digital economy relies. As each engagement is increasingly realized thanks to this digital economy, it is poignant to question the strategic positioning and the use of IT within the company as well as its ability to achieve business objectives?
1. Broaden the company’s understanding of the role of IT in the stakeholder experience.
As technology evolves, the way businesses and consumers interact and use digital assets organically changes in response. As a result, the technology shifted from something the IT department manipulated to the underlying architecture of business activation.
Today, each department works on some form of software application that enables it to perform its business function. In turn, these applications must integrate or be updated manually to achieve business goals.
A well-architected cloud ecosystem will position a business to deliver strategic value to all stakeholders while creating business agility and resilience.
2. Align technology choices with business strategy by investing appropriately from the start.
Invest strategically with the end state in mind. If a company’s goal is to increase workforce efficiency, cybersecurity, governance automation, and compliance while enabling a smoother customer experience. Company plans and resources should reflect this by investing in technology to enable this state.
It also means taking a measured and pragmatically divergent approach to ICT. Reassessing the current environment and thinking differently is essential for development. The digital economy is driven by new technologies, methodologies, practices and processes. Therefore, a company’s ICT strategy must follow suit.
3. Redefine the legacy understanding of IT costs and operational management.
By redefining the department’s strategy, the IT funding method will evolve organically. Reallocating funds from an outdated hosting model to an automated and scalable hosting model adds value in two ways. First, by reducing onerous financial demands, and second, by redistributing saved funds.
The reinvestment and updating of IT technology renewal cycles will better position the company’s competitiveness within the digital economy. An economy based on instantaneous delivery and rich in similar possibilities.
Outdated technology and operating models are some of the root causes of tech debt. Due to budget constraints, companies try to extend the life of the hardware they use but ultimately end up costing the company more due to technical debt.
4. Implement a cloud-centric operating model and prepare legacy applications for the cloud.
Enterprises are at a point where implementing a strong cloud operating model is imperative for business continuity, agility, security, and resiliency. This readiness should be deployed sooner to avoid further risks and losses associated with tech debt. Implementation based on industry best practices in the form of proven solutions is essential whether a business is currently in the cloud, uses on-premises servers, or operates a hybrid model.
Developing a cloud-centric, forward-thinking business requires a pragmatic culture, as well as a knowledgeable and knowledgeable team that can properly navigate and implement the elements of a business-centric approach. cloud.
One of the main challenges in this process is how a business can handle the migration of legacy applications (systems) to the cloud. Mismanagement of this component could set a business down further. Simply moving a legacy system to the cloud will only exacerbate the current system problems. Also, to do it right, it’s important to remember that this iterative process is a relay, not a sprint.
The continued inertia of legacy applications can be avoided by preparing the ecosystem for decoupling from legacy systems. Using a measured migration and modernization process, such as implementing a ring-fenced API environment, allows a business to start reaping the benefits of a cloud environment as soon as possible. The business can then strategically and systematically upgrade business systems to meet the organization’s strategic cloud goals.
5. Choose an expert partner who meets the critical strategic requirements of the business.
There are several ways a business can migrate its operations to the cloud. While not all methodologies add value, in fact some will increase technical debt and continue to rise, decreasing the ROI potential offered by the cloud. It is therefore essential to selectively partner with experts who focus on achieving the identified strategic business outcomes.
As a result, the right partner is a critical consideration in achieving ROI. In addition, the right partner will also contribute to effective cost management and ensure the long-term business benefits of all cloud computing âityâ.
The cumulative effects of technological debt
Uncontrolled technical debt and the choice of short-term gains over quality, agility and sustainability ultimately prevent a company from being able to compete, innovate and adapt to changes in the industry. But the greatest cost of technical debt is performance and growth, as well as unrealized potential and lost opportunities.
By using Microsoft Azure, properly architected, our customers are assured of better delivery, faster turnaround time, improved flexibility, disaster recovery and security.
Ultimately, technical debt, with all its nuances and impact on velocity, builds up very quickly for businesses of all sizes. It’s about making informed decisions and investing in the right technology at the right time.
As a solution provider, Tangent encourages companies to invest in DevOps technologies and methodologies that allow them to stay competitive. It’s time to think outside the box when it comes to a company’s cloud computing infrastructure, because adopting a legacy operating model, without challenging traditional practices, has negative long-term consequences.