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Cloud IT Services Can Mitigate Vendor Transition Costs

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Cloud IT Services Can Mitigate Vendor Transition Costs

August 05, 2016
By Laura Stotler
TMCnet Contributing Editor

Deciding to switch to a new IT vendor or service provider sounds like a great idea. Perhaps your current IT vendor has become cost prohibitive or maybe they’ve gotten too comfortable and aren’t providing the level of customer service you feel you deserve. So you do your research and find an alternative vendor that will help you save money and maybe even offer some new value-added services.

This all sounds like a great idea – until you determine just how costly making a switch can be. Vendor transition costs aren’t widely discussed at the onset of a vendor/client relationship, when everything is amicable and optimistic. Yet the costs to actually switch to a new vendor can be substantial, and prohibitively expensive for any sized business. In fact, according to Gartner (News - Alert), seven out of 10 companies decide not to switch vendors because the process is simply too expensive and complicated.

Cloud-based IT services can be a major help for companies that wish to replace their current IT vendors. For instance, if a company is spending too much money on an internal IT expense, they can cut costs tremendously by transitioning to the cloud, with the added bonus of a cloud service provider handling the transition and any associated complications. A cloud service provider will also continue to manage the service and relationship, effectively freeing up IT staff to focus on other projects.

According to Gartner, the cloud offers three main benefits for cost control, with the main one being cost agility. Since many cloud services are priced based on consumption and demand, companies can realize major cost savings versus static and fixed cost services and solutions. Cloud IT services also do not require upfront capital expenditures and the associated operating costs for equipment management and maintenance. These cost savings can, in turn, be invested in other areas of a business and can help mitigate the expense of switching IT vendors.

Organizations shouldn’t be forced to retain an IT vendor relationship that isn’t in their best interests. By making use of cloud IT services, businesses can unburden themselves of costly and impractical IT vendor relationships while transitioning to new services that perform better and work better for IT operating budgets.

Edited by Alicia Young

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