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40% of the Hardware is Coming to an End / Hürriyet

40% of the Hardware is Coming to an End / Hürriyet

40 percent of the hardware in the hands of institutions is coming to an end

With the digital transformation, the competitive environment in the field of technology is reshaping. This competitive environment further strengthens the position of CIOs. CIOs, who need to prepare their organizations for the world of innovation, have a very difficult job in institutions that are hesitant to the cloud transition process. Because these institutions cannot go beyond traditional network connections.

According to IDC’s Turkey survey results; In Turkey, 78 percent of CIOs think that cloud computing companies are critical in terms of digital transformation strategy. The first factor that lead companies to consider cloud services is that 40 percent of their hardware is approaching the end of their lives. The second is that 29 percent of data centers require update or replacement, and the third is that 26 percent of organizations demand more agility / speed from IT.

Evaluating the survey results, PEAKUP CEO Ahmet Toprakçı explained what CIOs should pay attention to when determining digital strategies. Stating that almost half of the hardware in the hands of corporations has expired, Toprakçı says that cloud investments will show a rapid transition towards SaaS services in the coming years, and the SaaS market is growing by 20 percent every year.

What should CIOs do for the right digital transformation strategy?

Stating that cloud services are of great importance in digital transformation, Toprakçı said, “It is vital to set up the right cloud strategy in terms of digital transformation strategy. To acknowledge the cloud reality and create a strategy accordingly, CIOs should pay attention to the following:

They should carefully examine the sector in which their company is located and the practices and strategies of similar institutions abroad.

They must identify and be prepared for the challenges they will face in the transition to cloud.

There should be solutions on how to avoid being dependent on providers in large clouds.

They should plan how compliance and data management issues should be.

They should investigate if they can combine the multiple cloud backends they have.

As the scale grows, they should find an answer to the question of whether or not they should or need to adopt payment-based consumption models.

Stating that there is a $100 billion SaaS market in the world according to Gartner, Toprakçı said, “SaaS market is growing by over 20 percent every year. So, while many workloads are shifting to SaaS infrastructures in the cloud, basic systems such as e-mail make up some of them. According to the research of SaaS-Powered Workplace, by 2022, organizations will host more than 80 percent of their applications in SaaS infrastructures. At the same time, according to the Cisco Global Cloud Index, SaaS applications will create 74 percent of all cloud workloads as of this year. As a result, 40 percent of the hardware in the hands of institutions is coming to an end. Considering all these trends, hardware shifts to the cloud and cloud investments to SaaS are among the most important trends of 2020. “In the future, there are machine learning and artificial intelligence that are waiting for us on our way.”