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Flexible Funding & Delivery Models… Why Migrating to the Cloud is More Affordable than You Think

Most businesses recognize that modernizing their communications technologies will help them increase productivity, improve customer satisfaction and sharpen their competitive edge. But many are sticking with the technologies they have today because they don’t believe they can afford to do anything else.

The good news is funding and delivery models for communications technologies have become far more flexible in recent years. This flexibility opens the door for almost every business to start on the path to modernization.

CapEx Funding Strategies May Be Holding You Back

Traditionally, CFOs have preferred to buy IT infrastructure outright as a capital expenditure (CapEx) because they could use the associated amortization and depreciation costs as tax deductions. While these financial benefits are helpful to businesses, a CapEx purchase strategy for communications systems also comes with downsides.

  • A significant cash outlay is required to initiate the purchase.
  • Hardware is particularly notorious for becoming obsolete in shorter-than-expected timeframes.
  • There’s a significant risk that purchased resources will remain idle or underused over the lifetime of the system.
  • Purchased on-site hardware and software systems consume space, and they must be maintained, powered, and cooled.

An OpEx Strategy Increases Flexibility On Every Front

With an OpEx strategy, businesses don’t purchase the communications system hardware or software. Instead, they pay a monthly, quarterly, or yearly fee to access communications capabilities that are offered in a subscription model. All hardware and software are owned, operated, and maintained by another company, and communications costs become day-to-day business costs. When technology is an operating expense, businesses can:

  • Pay only for the capacity they currently need, so capital is never tied up in under-used hardware and software
  • Write off the entire subscription cost each year rather than just a percentage of the total CapEx purchase price
  • Free up large amounts of capital that can be invested across the company
  • Avoid the need to borrow money or divert money from other projects to pay for large, upfront technology costs
  • Reduce the costs of system operation, management, and maintenance
  • Streamline cash flows by eliminating large, sporadic cash outlays
  • Simplify and accelerate budgeting exercises because short-term spending requirements are lower

Cloud Communications Solutions Leverage the Benefits of OpEx Funding

The limitations of CapEx strategies, combined with the availability of subscription-based, cloud-hosted communications solutions, are leading many CFOs and CIOs to choose OpEx funding models for business communications systems.

With this approach, businesses can immediately start migrating to the cloud at a pace that makes the most sense for their communications requirements, business goals, and budgets. For many businesses, a hybrid approach that combines existing on-premises solutions with cloud-based applications could be the right way to start the journey to the cloud.

TCI Is Ready To Help

Your local TCI experts are ready to discuss the benefits of an OpEx funding strategy for your communications system as well as the pros and cons of different cloud migration strategies.

Don’t let financial roadblocks be an obstacle to cloud migration. For flexible financing arrangements, contact us today at (703) 321-3030 or info@tcicomm.com.

 


Is an Aging Phone System Slowing Your Business? Adopt a Cloud-First Mentality to Boost Your Communications

It’s going to happen… After years of faithful service, your premises communications system will eventually reach the end of its useful life. Maintaining and upgrading the hardware may become difficult or just won’t make financial sense. Updating the software may no longer be the path to all those advanced features you need to maintain efficiency and productivity.

Charting a New Path

The reality of diminishing returns will kick in and you’ll find yourself considering a new system. You’ll be faced with two potential paths to follow. You could replace the aging communications system with a new premises solution and go through all the deployment, configuration, and adjustment processes that go with it. Or you could chart a new path with a cloud-based communications solution.

Flexible and agile cloud infrastructure makes it easier to adapt to an ever-changing market environment. The pandemic has demonstrated the ease of access and speed to activation that cloud technologies provide. Enterprises that were already leveraging cloud-based communications systems were able to easily make the transition to remote work. Those without some form of cloud technology were left playing catch up.

A cloud-based communications system streamlines interactions between employees and partners and suppliers. With unified communication and collaboration tools, it can increase efficiency and improve customer service. It can also be the anchor of a digital technology strategy that leverages a variety of Software as a Service (SaaS) offerings.

Look Beyond Immediate Requirements

Consider the big picture by looking beyond immediate needs and factoring future evolution into your thought process:

  • A purpose-built cloud solution provides unified and scalable communications to anyone, anywhere, and on any device.
  • It enables more mobility, rich enterprise and team collaboration, and exceptional customer experiences.
  • The cloud can provide the flexibility and scalability to integrate with a variety of SaaS business support and productivity tools to further transform business processes.

TCI can help you migrate to a cloud communication solution that is customized for your business needs. Contact us today at (703) 321-3030 or info@tcicomm.com.

 

Best Practices… Taking it Step-by-Step to Your Smooth, Resilient Cloud Migration

With more companies moving to the cloud to support remote work requirements, due diligence is essential. Moving to the cloud is a major undertaking, but it has to happen. There’s not only a pandemic to deal with, but legacy systems are expensive to maintain. To ensure your cloud migration is smooth and resilient keep these three principles in mind…

1. Plan for Now, Plan for the Future

Doing your homework pays off in the long run. First, identify all the relevant stakeholders – those who will be most impacted by changes in applications and accessibility – and discover what’s most important to them. What are their key workflows? What applications and tools are essential for them to do their work? What’s most likely to be impacted by the migration? After completing this process, you will be better able to develop a detailed deployment plan that takes each stakeholder’s unique needs into account.

Next, decide what will go to the cloud. Examine each application and determine if it makes more sense to migrate it, keep it local, or upgrade it to a native cloud application or Software-as-a-Service (SaaS) application. Evaluate how each decision will impact your overall infrastructure. The discovery and evaluation process may also help you to project future needs.

2. Actively Manage Change

When designing your cloud migration, identify each significant moving part that could create problems, and develop a plan to mitigate the issues.

When you shift applications to the cloud, will you have the IT personnel with the skill set you need? If not, you might have to hire new team members or retrain current employees. Workflows will change. Responsibilities and roles may change. Think ahead and assemble the players you need. Consider forming a dedicated team just to manage the migration.

3. Test for Resilience before Migration

Because resilience is so crucial to the business, it pays to prepare and test your systems before deployment…

Ask your vendors for demonstrations before you go live. They should be able to walk you through every step in the process.

Because there will be bumps along the way, make sure you’ll have access to real-time data in case you want to step back and change your plan.

Preparing for cloud migration is a good time to reevaluate your back-up and recovery solutions to make sure they’re strong and aligned with the company’s business strategy.

Moving your communications to the cloud shouldn’t be intimidating. With a strong partner like TCI on your side, you and your stakeholders can rest assured that the migration will go smoothly. Contact us today at (703) 321-3030 or info@tcicomm.com.