Why is Enterprise Software Underutilized?

With the megatrends of cloud computing and managed services transforming IT, why is Enterprise Software still underutilized?  Wall Street continues to report the quarterly market growth of Amazon, Salesforce.com, and Microsoft’s cloud business but the journey to the cloud for customers to realize the value of software as a service continues to lag.  Here are three reasons we believe there is a gap between what customers are buying and the value they are receiving from enterprise software.

 

  1. Cloud Services do not require significant budgets

Most organizations categorize cloud subscriptions expenditures under operational expenses, where traditionally they have been capital expenditures with large up front budgets for licensing and hardware.  As a result, normal project considerations, including deployment and training, are overlooked since the service is just “turned on.”

  1. The Executive Sponsor typically has moved on to other initiatives

In my experience, software sales reps will typically build a relationship with a “C” level executive that has the “juice” to make a large purchase.  These executives are typically very busy and after the deal is done they leave the implementation to IT staff or project managers to complete the project.

  1. Information Technology Staff needs more training in adoption best practices

Traditionally, IT staff have been focused on the support (break fix) or rollout of new technology.  With the cloud, this model has changed.  Many articles cite an IT skills gap that has been created by the speed at which technology is changing.  This is being fueled by the consumerization of IT as well as cloud technologies.

 

So, is it time to outsource your IT department or stop buying cloud software?  That is not what we are recommending.  Moving to the cloud is almost always a great choice.  We believe that cloud software offers a great opportunity to change focus to a productivity value created by enterprise software.  The experts at Xgility have experience and skills developed over a large customer base and our managed services can help you transform your IT department and/or your business.

If you want to know more about our proven mythology for the adoption of Microsoft cloud software such as Office 365, Azure, SharePoint, or Enterprise Mobility Suite (EMS), let’s talk.  Our Managed Services team can also show you how to use the latest tools for adoption tracking.

 

 

 

Author:  Kurt Greening

Editors:  Alex Finkel and Chris Ertz