Germany’s economy is based on medium-sized companies which, for their part, depend on their innovative strength. But innovation also calls for change and Germany’s medium-sized business sector should not hesitate to renew its IT infrastructures. Because this brings monetary benefits.
Talking about a strong German economy inevitably means talking about Germany’s medium-sized business sector. Innovative by tradition, these companies should not make the mistake these days of letting the latest developments in the IT services sector pass them by. If they continue to rely on traditional rather than state-of-the-art IT infrastructures, or exclusively on on-premise rather than customized cloud solutions, they risk losing their position in global markets. Some large corporations have already understood this: They have long since outsourced CPU performance, storage capacity and software as a service (SaaS) and now run only a very limited part of their applications in their own data centres.
Establishing a state-of-the-art IT infrastructure including cloud services can offer companies a host of benefits: lower fixed costs and capital investment, greater flexibility, higher technology standards and even a higher security level. Most importantly, it is these providers of modern cloud solutions who often have better encryption technologies or backup systems than small medium-sized enterprises which simply lack the necessary funds. Furthermore, companies benefit from scalable and/or downgradable IT services, affordable access to the latest software solutions, regular updates and payments which perfectly reflect their needs. Medium-sized enterprises using such offerings can cut their IT expenditure by up to 30 percent.
Even if we put these facts aside, Germany’s medium-sized enterprises and their use of cloud technologies is a response to an irreversible development. That’s because people want to be able to access their data and the Internet from all over the world, irrespective of whether for work purposes or for private interaction. The availability of data and the opening up of communication and trade channels in a global network are hence decisive for a secure market position. Ignoring this development means throwing away growth potential. New competitors frequently use the cloud and as-a-service solutions as leverage, enabling them to respond in a flexible manner and to bring new products to market. In order to succeed in this environment, medium-sized companies in Germany should also make use of these tools.
Conclusion: Using the latest IT solutions not only brings competitive advantages, it also brings greater cost efficiency making migration twice as valuable. Cloud technologies are IT solutions that are marked by simple access, flexible use and transparent billing. It’s not so much a question of whether Germany’s medium-sized business sector is ready for the digital transformation, but more about realising that the time has come to make use of the benefits of this transformation.