Optimizing for Profit Improvement

IOA-architecture

There’s no question emerging technologies play an increasingly strategic role in enterprise profitability, innovation and competitive position. Eighty-eight percent of companies surveyed for Altimeter’s 2014 State of Digital Transformation Report claimed they were undergoing a “formal digital transformation.” It doesn’t take a genius to see that profit-hungry organizations looking to rein in CAPEX and OPEX have tasked IT with scaling up services, while at the same time, reducing overhead costs to free up corporate resources for greater innovation and revenue growth. A large portion of these companies are achieving this via more economical service models based on new systems of engagement such as social media, mobile and cloud to enable greater efficiencies in new product and customer service delivery.

More agile and interactive IT delivery services save organizations money, but the real value is in how these new services enable companies to deliver solutions faster, improve customer satisfaction and expand into established and emerging markets. For example, migrating to the cloud has enabled a number of businesses to reduce their overhead, while providing a more effective customer engagement channel. According to Oxford Economics’ report, The Cloud Grows Up, more than 60% of companies planned to harness the cloud to develop entirely new products and services.

Interconnection: The Great Optimizer

Enterprises have found other ways to innovate and increase profits, while lowering costs. Instead of building their own data centers worldwide and stringing expensive, long-distance connections to each facility, more and more businesses are harnessing the scalability of existing global colocation data centers and leveraging an emerging model, the Interconnection Oriented Architecture.™ An Interconnection Oriented Architecture enables globally distributed digital hubs that aggregate communications, cloud and storage capabilities in well-connected colocation facilities. This allows businesses to quickly and cost-effectively establish themselves in new markets and deliver new solutions to existing markets.

Once within an interconnected colocation facility, businesses can easily become interconnected enterprises and directly and securely connect its employees, partners and customers to what they need, in the right context, using the devices, channels and services they prefer. Gartner’s report, “Colocation Networking & Connectivity,” outlines how enterprises can employ colocation networking to achieve superior flexibility, resiliency and cost reduction. These efficiencies can then be passed down to customers in the form of more competitive products and services. For example, directly connecting to dense ecosystems of cloud and network service providers allows enterprises to craft the best, most cost-efficient choice of solutions and maximize the speed of service delivery, and ultimately, increase customer satisfaction and retention.

There are many examples of organizations using more efficient and interactive systems of engagement to transform their businesses into digital businesses at a reasonable cost. One of the largest global manufacturers of commercial and consumer goods uses interconnection to deploy productivity applications, information and analytics in the public cloud, while keeping mission-critical processes private. This increases the company’s ability to grow its multinational businesses by collaborating, innovating and bringing more competitive solutions to market faster.

Similarly, a worldwide multimedia information network looking to focus primarily on expanding its greatest competitive advantage – new programing for its viewers ̶ wanted to get out of the “commodity IT” business. Their solution was to work within global colocation facilities to move just about everything, from its corporate email system to its customer relationship management system and the corporate VPN, to proximate cloud ecosystems. This enabled them to focus on developing new programs and increase their main stream of revenue.

Increasing revenue growth, while optimizing for greater profitability can be a challenging juggling act. However, by leveraging colocation data centers with an Interconnection Oriented Architecture, organizations looking for greater efficiency have found a new source of scalability, economy, and revenue growth and profitability.

Why become an Interconnected Enterprise? Learn more:

Growth Through Digital Transformation and Interconnection

Greater Revenue Through Systems of Engagement

Executing for Faster Speed to Market

Laying a Foundation for Security