There’s More to Life Than Saving Money

by Antoine Rizk
VP, B2B Program, Product and Solutions Marketing
Axway

New requirements constantly emerge for additional standards that are not yet supported (e.g., new networks, protocols, formats, etc.). Infrastructures that are too rigid simply break like the tall oak in the wind and need to be replaced.

New requirements constantly emerge for additional standards that are not yet supported (e.g., new networks, protocols, formats, etc.). Infrastructures that are too rigid simply break like the tall oak in the wind and need to be replaced.

Back in December 2008, a leading analyst predicted that, due to the then-burgeoning, now-stabilizing financial crisis, the major business case for many application and infrastructure initiatives was going to align with cost reduction.

And they were right. Nearly every customer I’ve spoken to corroborates the analyst’s prediction. But I submit that there’s more to life than saving money, even in lean times like these. So what, you may wonder, are those things, those compelling drivers for B2B/MFT projects besides getting things done on the cheap?

Five stand out to me.

  • Compliance: You must have the right auditing and logging information to comply with industrial, financial or legal obligations. In a way, you might see this as a continuation of the saving-money school of thought. After all, preventing fines and lawsuits is a money-saving activity, right? But there is a vast difference between spending too much on something and any amount on nothing, which is never an easy circumstance to accept.
  • Business Growth: Business growth often drives architecture refreshes, and rightly so: when the existing solution cannot efficiently handle the demands of the business, when the business outgrows its architecture to the point that no amount of ingenuity or reorganization can accommodate it, it can no longer cope with the demands of its trading partner community.
  • Business Risk and Loss of Data: When your current processes lack the control you need for guaranteed, once-only delivery, the result is a story of misfortune: missed SLAs, multiple payments made, orders lost, etc. And all of this directly impacts the bottom line.
  • Personnel Rollover: Developers of legacy, home-grown FTP solutions, like long-gone inhabitants of ancient civilizations, move on to new opportunities, and in their wake they leave behind little or no documentation on the tools and mission-critical data that their successors need in order to keep operations running smoothly.
  • Expanding Requirements: New requirements constantly emerge for additional standards that are not yet supported (e.g., new networks, protocols, formats, etc.). Infrastructures that are too rigid simply break like the tall oak in the wind and need to be replaced.

In my view, none of the above drivers are compelling enough in their own right to bring about a new infrastructure initiative without thorough proof of accompanying TCO reduction and ROI. This truth cannot be stressed enough.

Fortunately, reducing TCO can be done in many different ways. Consolidation, however, is by far the approach that brings the most value. B2B/MFT consolidation can be achieved by replacing multiple legacy and home-grown solutions with a single solution that is solid enough to maintain and even enhance performance, and covers all the required formats and protocols for the exchanges.

Consolidation can cover a variety of business cases:

  • Replacing on-premise FTP/home-grown file transfer infrastructure with a managed file transfer solution
  • Replacing on-premise product with a managed file transfer solution
  • Replacing several on premise multi-enterprise/B2B gateways with a single B2Bi platform
  • Replacing a VAN with an on-premise B2Bi solution
  • Replacing on-premise B2B gateway(s) with a B2Bi on-demand solution

As well as any combination of the above.

Finally, there is the ever-important ROI. Three ways consolidation brings you ROI include:

  • Reducing your IT costs: This includes personnel, planning, organization, acquisition, implementation, delivery and support, as well as monitoring/evaluation costs.
  • Reducing your business costs: This includes costs due to an error or a delay in message/file delivery, downtime hours, fees and penalties per missed SLA, audits, losing customers and data breach penalties.
  • Increasing your business value: This includes incremental revenues due to getting new products to market faster, being easy to do business with, reliable delivery and non-repudiation, increased customer satisfaction and loyalty, and being able to add new partners to your network.

When you increase business value, you increase your revenues and quickly bring better services to market. Your suppliers and customers can deal with you easily, and that brings about customer fidelity, satisfaction, loyalty and a host of other benefits too numerous to explore here. It’s easy and vitally important to take measures to save money, no doubt about it, but it’s the truly savvy business people who remember the essential nature of nourishing and flourishing business value, and it’s those business people who will, years from now, look for new ways to save money while their long-gone competitors fondly remember the business they were once in.

(Photo by zenera: http://www.flickr.com/photos/zenera/ / CC BY-SA 2.0)

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