Online sales in 2017 will grow three times faster than the retail industry. Read a headline like that, and you’d think online retailers have revolutionized things. That somehow, they’ve escaped the low-margin, cost-obsessive environment for which the retail industry is known. But anyone with that impression should think again. Because while the internet is proving a highly lucrative channel for many, the companies making the most cash are the ones that are focusing most heavily on margins and expense.
Any doubts? See what the successful online retailers are doing with their IT. Clearly, IT is a cost centre that can quickly get out of hand, not least for online retailers. By migrating to the cloud, retailers are significantly cutting their IT expenditure. And it’s not only the retailers. Businesses operating around the retailers — such as shopping comparison sites like LeGuide.com, which is part of Kelkoo — are making large savings too.
When on-premise is no longer the right fit for the world of online retailing
LeGuide.com faced the classical challenges of an on-premise IT infrastructure. IT management expenses were increasing. The company was spending hundreds of thousands of euros each year on IT admin alone. Plus, there were regular hardware refresh cycles. To cut its IT spend down to size, LeGuide.com engaged NTT DATA to migrate its IT to a managed cloud infrastructure.
The engagement with NTT DATA turned things around at LeGuide.com. In one go, the company reduced IT management costs by around €400,000 a year. It wasted no time in redirecting its freed-up resources to driving IT innovation, redeploying 83 percent of IT admin to development.
As LeGuide.com says, the switch to the managed cloud made its IT simpler and more agile. Free from procurement cycles, the business could scale up and scale down its infrastructure on demand. Want 30 more virtual servers? No problem, it’ll take just a few hours. Worried about uptime? Well, with the stability that’s baked into the NTT DATA managed cloud service, you can enjoy high availability all year round.
The benefits of the cloud migration – even taken individually – would be enough to spark the interest of senior executives. But it’s when you add them all together that you realize just how compelling cloud is to retailers as well as other businesses. Even today, we’re seeing cloud IT making the difference between success and failure, and its projects like the one NTT DATA did with LeGuide.com that are given senior directors food-for-thought on their IT strategy.
Questions? Read this short case study to learn why LeGuide.com chose NTT DATA managed cloud service.