Most organizations today have committed the majority of their IT budgets to “keeping the lights on”. Instead of transforming and innovating business-critical processes, organizations do their best on keeping up with vendor-dictated product roadmaps. In addition, only a small portion of the money customers pay to stay on active maintenance is being reinvested in meaningful system enhancements. As a result, according to Gartner, only 10 percent of the IT budget is invested in business transformation initiatives.
Industry research firm Gartner published a report analyzing software and cloud contracts, and explained why third-party system support can be beneficial for many companies. In this report, we found a number of insights around the challenges of pursuing digital growth while controlling costs that we think might be helpful for a lot of OpenText and SAP customers.
We recommend our blog subscribers, especially the ones who experience trouble keeping up with the latest release of their leading applications, and those who struggle to build a future-proof cloud strategy, to have a look at this report.
Here are some insights from the report that we would like to highlight:
- Prediction: “Each year, the cost of supporting older software increases while the benefits of that support decrease, leading more companies to look for lower-cost, third-party support options.
- Recommendation: Companies that have identified applications that should not yet be moved to the cloud should evaluate third-party support as an alternative to direct vendor support in order to get high-performance, existing software
- Recommendation: “For applications that you do not want to move to the cloud yet, evaluate third-party support as an alternative to direct vendor support to fund future innovations.
This must-read from Gartner enables IT leaders and sourcing, procurement and vendor managers to identify the trends and impacts of pursuing digital transformation in tandem with cost control.
Let’s Talk about Your OpenText System Support
Does your company experience trouble keeping up with OpenText’s product release schedule? Are most of your IT personnel busy “keeping the lights on”? In case you are missing in-house expertise, we can help your company to securely support legacy and unsupported and up-to-date versions of your OpenText applications on-premise, in the cloud, and in hybrid enviroments. Contact us today for assistance with your OpenText cloud migration strategy.
Reference: *Gartner, Inc. “Predicts 2020: Negotiate Software and Cloud Contracts to Manage Marketplace Growth and Reduce Legacy Costs.” December 18, 2019.
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