How the Cloud can Help Businesses Survive IBM Price Increases

“The Only Thing That Is Constant Is Change” – Heraclitus

This morning I woke to an email from IBM announcing that the hardware prices for IBM systems would increase by 7% across Australia and New Zealand effective as of October 1st 2015. To put that in perspective, according to a recent publication in IT Jungle a non-x86 system which had an average price of approximately $189,000AUD, 2 weeks from now can be expected to cost your organisation closer to $202,000AUD.

In the past…

Because a Disaster Recovery strategy and the supporting hardware is a necessity in business for many reasons (protecting revenue, saving reputation and meeting regulatory requirements among others), businesses traditionally had to accept the financial hit and purchase the hardware themselves.

2013 was the last time that prices were adjusted for the region and at that time new customers were forced to invest in the hardware if they did not have adequate resources within their business infrastructure. Regardless of whether you are a large organisation or an SMB, a 7% increase in hardware costs will change the way you view your Disaster Recovery solution and affect your business’ bottom-line.

What’s changed?

Jumping forward 2 years to the present day, Maxava can now offer an alternative to this costly exercise through utilising the Cloud, or Disaster Recovery as a Service (DRaaS). With remote storage facilities located across the globe, Maxava customers can opt to utilise the Cloud as part of their DR strategy, thereby gaining a number of benefits. The high cost of purchasing hardware for your business backup can be replaced by a much smaller monthly license fee which effectively converts what would previously have been a large capital expenditure to a smaller operational cost, without sacrificing performance. Because of this, our customers are able to increase their data security without the need to finance the project through debt or capital-raising activities.

So it’ll save us money, but what else do you offer?

By trusting our experts in DR, your technical team is able to focus on the core IT functions of your business, safe in the knowledge that business critical data is backed up in real-time and ready to role-swap should a disaster occur. This full role swap can be accomplished in as little as 14 minutes, as evidenced by during the Christchurch earthquake of 2011.

Cloud storage can also increase your business resilience in the face of regional disasters which may impact your business operations through storing data in real-time outside of your city, or even in another country.

More affordable, increases business resilience and saves time? This sounds too good to be true…

To be clear, the Cloud is not suitable for every organisation and some customers who have a high requirement for data security such as banks or other financial organisations, will still need to make the investment in hardware themselves. For the majority of our customers taking advantage of the benefits of Maxava, our Cloud offering can save them a lot of headaches, especially when paired with our specialist staff who take away the burden of monitoring either your production box, backup systems or both.

The IBM pricing announcement may have some significant effects on your IBM i environment, however Maxava is here to help. If you would like to talk to one of our specialists about whether the Cloud is right for you then Contact us.  For a limited time, we’re offering a FREE proof of concept so you can see it working for yourself and get an understanding of the value to your organisation. If you’re unsure about Disaster Recovery and the Cloud you can download a FREE copy of our latest Disaster Recovery Strategy Guide which will take you through the details of how Cloud works, and the benefits for your organisation.

SimonSimon O’Sullivan was a co-founder of Maxava and is the senior Maxava executive responsible for the Asia Pacific region. With nearly 15 years’ Maxava experience and more than 10 years of prior systems experience in NZ, England, Japan and Saudi Arabia, Simon has worked with an impressive portfolio of businesses to deploy secure, reliable DR solutions including many household names and a number of Fortune 500 customers. For questions about Maxava, contact Simon.


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