Mergers, acquisitions, and even divestitures can present critical opportunities to migrate and consolidate (M&C) systems, allowing an organization to realize cost savings across respective entities. Yet, how the newly combined infrastructures will match-up is seldom a major consideration when consummating these types of transactions. M&A activities can present a compelling case for moving workloads to cloud, but several important considerations should be taken into account.
Seizing Opportunity to Reduce Data Center Footprint
For some organizations, an M&A presents an opportunity to migrate existing workload to the latest technology, when the acquired company is utilizing a more advance system. Rather than re-investing in older technology, the company can use the newly acquired system to update their infrastructure. IT organizations can also leverage an M&A to consolidate data centers. Advances in cloud technology make it possible to dramatically reduce the footprint of data centers.
Aligning Technology Strategy with Business Model
M&As are often driven by an underlying desire to gain synergy and build economies of scale. Part of the IT mission is to achieve similar synergies and economies of scale, while consolidating organizations. To realize these goals within IT, it’s important to align your technology strategy with your business model. It’s critical to have a system in place to take advantage of the business model, as well as move workloads into a consolidated infrastructure.
IT organizations will want to consider how they can provide more computer resources while creating smaller data centers. By going to cloud-based data centers and leveraging cloud models, companies can more easily operate globally without having to establish data centers in far flung corners of the world.
Consider M&A Activity from a Service Definition Perspective
As operating models are merged, realignment of the IT organization will inevitably occur. Roles and responsibilities must be reviewed and processes recalibrated prior to the move to a target operating model. Failure to have the right service definitions in place to support the business model that emerges from M&A will likely doom any resulting cloud initiative. Getting your proverbial ducks in a row is key to any successful M&A realignment and to any initiative aimed at taking full advantage of cloud to support IT and business objectives.