When the economy is booming, companies aren’t as focused on cost-cutting measures as they could be. Cost optimization and organizational efficiency may not be top of mind when the economy is at its peak. The truth is that many companies simply do not prepare for unfortunate circumstances, while best practices suggest having a plan in place for when the economy takes a turn. Leaders may not have a chance to explore cost-cutting initiatives until faced with harsh economic truths.
In reality, unexplored inefficiencies can cost organizations a significant amount of their revenue. One study estimates that it can cost a company up to 20-30% of its funds each year. One of the best ways to increase efficiency within your business is to streamline your tech toolbox. Decide which solutions are necessary and which can be updated or replaced. When it comes to the bottom line, legacy systems are one of the first tools in the tech toolbox to be scrutinized.
Mainframes may be considered outdated, but these legacy systems are renowned for being stable workhorses that are extremely efficient and reliable. They have less than one minute of unplanned downtime per server, per year. Given that planned downtime is estimated to cost individual organizations 5.6 million USD a year, it’s extremely important to keep unplanned downtime minimal.
In fact, a mainframe’s efficiency and dependability shine bright in times of economic downturn. Their strengths and ability remain consistent when there’s not much else to count on. The fact that mainframes rarely require emergency maintenance and have very few issues, makes them an important part of a company’s technology arsenal. While mainframes handle 68% of the world’s production IT workloads, they account for only 6% of IT costs. Companies should look at other less integral systems before deciding to migrate off the mainframe, a risky move that can cost an incredible amount of time and money to achieve.
While mainframes are extremely reliable, they are also extremely versatile. They have the capability to connect with newer applications via APIs and mainframe integration tools. Moving on-premises applications to the cloud is sometimes recommended when a company is aiming for cost optimization. Companies can typically save 30-50% by going this route. However, by moving some applications off the mainframe and onto the cloud, companies can successfully utilize the hybrid cloud environment. A hybrid cloud lets organizations focus on digital transformation and shortens the time-to-market window, which is both extremely important in times of economic hardship. It also allows companies to be versatile and responsive. The hybrid cloud can provide benefits that improve speed, control, and security, increase growth potential, lessen costs for the organization, and increase orchestration. The hybrid cloud can help bridge legacy systems to newer technology, while also retaining the stability of the mainframe.
In trying economic times, it’s necessary to make financial decisions that not only help in the short run but prevent risk in the long term. Your mainframe is reliable, versatile, and secure. When facing uncertain economic times, a mainframe brings the necessary stability to an organization.
At the same time, leveraging your mainframe in an economic downturn can also create a unique opportunity for your organization. Using our Ivory Suite, companies can integrate their mainframe through the seamless and quick creation of complex APIs, all without the use of coding. Contact us to discuss how GT Software can help connect your mainframe with new applications or to the hybrid cloud. We can elevate your legacy systems to the leading edge, even in times of financial uncertainty.