Digital Transformation Powered by Remote Nearshore+ Model
Cloud adoption has become the new standard requirement for business. In the era of digital transformation, we are seeing two significant drivers creating new business opportunities. The first is the decoupling of value creation and value capture. Do you pay for Google searches? Google, last year was very profitable. The second cloud migration is more than just replacing your hardware with virtual hardware. The real transformation is in the adoption of serverless architecture, microservices, workflow automation. As the digital transformation continues in these strange times has become an even more critical necessity for any business looking to stay in tune with the digital innovation wave. The public cloud market worldwide is still forecasted to grow 17% in 2020, according to Gartner, Inc., with Software as a service (SaaS) remaining as one of the most significant segments.
Many businesses have jumped on the innovation bandwagon. They have adopted a cloud-first strategy, but still, some are struggling to reap the benefits of moving the bulk of their legacy systems to the cloud. When not done correctly, that approach can result in IT infrastructures that are more costly than before. Obtaining the full value of cloud technology comes from approaching this option as part of a holistic digital transformation strategy, including having the right team with the right capabilities and mindset in place.
During this transformation, the implementation phase can be stressful. The answer is Nearshore+ software development teams that are customized and integrated with your team remotely. The remote integrated teams become highly collaborative and more productive. Through Agile methodologies and teaming, our adaptive teams always stay focused to deliver on time and budget.
How does it help? The five "C"s of Nearshore+ being Convenience to team and collaborate, Capacity for access to talent, Cultural alignment, Community for tech, and Cost-Competitiveness. All these are interrelated and build on one another. The Capacity of Mexican IT resources is growing every year and has ranked in the top QS World University Rankings 2018 features the world's best universities, 14 of which are in Mexico. The Cost is highly competitive with traditional off-shore offerings but has the workday overlap hours to make it Convenient and collaborative. Culture is aligned, and the consistency of business operations can be easily maintained. When issues arise, it is only at most a 4-hour plane ride south of the border.
Nearshore+ for Canada and the United States is enabled through communications technology and Mexico's political and economic stability, low cost of labor, and IP and trade protections afforded by the United States-Mexico-Canada Agreement (USMCA). Now more than ever, when it comes to software development, companies are being driven to make better total value-based decisions that include factors such as access and availability to talent, the Convenience of time zone alignment, Consistency and quality of work, teaming Collaboration, improved Communication, and better Cultural alignment.
The following is a case study to highlight the importance of managing and leveraging cloud investments to truly secure its cost-saving benefits. Our goal was to improve and better allocate our client's Amazon Cloud Services.
A Cloud Cost Optimization Case Study
Excerpt from AWS Cloud Cost Optimization Through Nearshore+ Teams
The iTexico client partner is a nonpartisan, not-for-profit organization dedicated to helping the U.S. business community actively participate in the public policy process and increase its political effectiveness through voter education.
The Business Challenge was the client had over 20 underutilized Amazon Web Services (AWS) virtual machines and databases as a result of a cloud project being implemented by an inexperienced team. iTexico's client was locked into a high fixed cost for a monthly service they weren't using and determined it needed an experienced partner to perform a complete Cloud optimization assessment and right-sizing of the AWS Cloud services to lower costs.
What we did at iTexico is have one of our remote iTexico Subject Matter Expert (SME), and Delivery Owner assessed the AWS Cloud infrastructure to determine which Cloud services could potentially be reallocated, optimized more efficiently and cost-effectively. iTexico recommended AWS Lambda, a highly dynamic and scalable serverless computing platform with pay-as-you-go and use service model.
iTexico implemented the following:
- Database migration from on premise servers to Amazon RDS.
- The static files from legacy servers were moved to Amazon S3.
- Every shared server for the VM's was moved to Amazon EC2.
The Benefits of AWS Lambda is Amazon's serverless computing service that allows you to run code without server management. It scales automatically depending on the workloads. You pay only for the compute time that is consumed, meaning there is no billing when your code's not running.
The Benefits of Amazon S3 is a storage service that can be accessed over the internet, allowing you to keep and retrieve any amount of data, at any time, from anywhere on the web. This service uses the same scalable storage infrastructure that Amazon.com uses to run its global e-commerce network and guarantees 99.9% uptime.
The Business impact after Cloud optimization for the iTexico partner include:
- A 65% labor cost reduction
- A 45% Cloud resource reduction
- A 75% monthly support ticket reduction
The client was able to improve their overall customer experience by prioritizing new feature development while having a stable and reliable Cloud platform for the development and deployment of their services.
Running applications and workloads on the cloud is easy. Doing so in a cost-efficient remote manner can be considerably more challenging. Organizations can benefit significantly from running applications on the cloud, with advantages ranging from cost reduction by using pay-as-you-go billing facilities, quicker time-to-market, increased scalability, reliability, and business mobility. As companies' needs evolve with more processes in place to automate operations, leveraging cloud computing services proves an excellent solution for businesses of any size.