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Gartener 2022 IT Modernization is here to stay

by | Aug 8, 2022 | IT Modernization | 0 comments

Modernizing your document management software

Gartner 2022 on IT Modernization: Modernizing Your Document Management Software

Gartner’s report from April 2022 suggested that despite global shifts in politics and its effect on economic trends, investments will only accelerate in software and IT infrastructure. As time goes on, service providers will inevitably adjust their positioning in a seller’s market. Organizations that act faster may catch the wave earlier and earn significant savings for their organizations. However, finding the right document management solution provider is easier said than done.

In our previous blog post, we took an aerial view on the Gartner forecast with the intent of identifying underlining topics that need deeper consideration. We singled out three topics that will help organizations and companies to take a more strategic approach and come out as winners.

These three topics are:

  • 2022 will be the noisiest year on record for CIOs
  • IT modernization is not a fad and will continue for the foreseeable future
  • Geopolitical shifts will not slow down IT spending any time soon

We covered the first topic in our previous blog post. In this blog post, we will focus on the second topic.

So without further ado, let’s dive right in.

Why Gartner states that IT modernization in software is here to stay

The Gartner study that was published in April 2022 has a packed paragraph that answers and raises new questions:

The rise of enterprise application software, infrastructure software and managed services in the near and long term demonstrates that the trend toward digital transformation is not a one- or two-year trend, rather it is systemic and long-term.

The article continues with another packed statement:

CIOs who keep their eye focused on key market signals, such as the shift from analog to digital business … will fare better in the long-term. At this point, only the most fragile companies will be forced to pivot to a cost cutting approach in 2022 and beyond.

Unpacking the two quotes above, we can see the signposts that point in the direction of ongoing business modernization by adopting digitalization of processes, moving from in-house to distributed services and moving toward cloud computing from on-premises data management solutions.

At the other end, service suppliers respond to these trends by increasing the options for anything from hosted data centers to complete document management solutions. Some companies that have been in business long enough to also accommodate the need of FedRAMP-ready and FedRAMP compliant document management solutions used in government agencies.

The Gartner article further states that even though IT companies respond with solutions, there is a noticeable shortage in skilled IT professionals. These professionals are still riding the wave of the Great Resignation, citing salary as the number one reason for considering or already looking for a new employer.

Organizations whose core business is not IT services are also feeling the pressure, mostly because employees expect their employers to ensure skills growth and promotion opportunities. So, any organization that uses IT systems as key infrastructure for business processes find it harder to retain the right talent inhouse.

Dated document management systems

What does this mean for agencies that use dated document management systems?

Agencies that use document management solutions for at least the past five years could be facing some rough waters ahead.

Let’s take a common situation where one document management department has an on-premise server infrastructure and a document management software that has not seen any major updates for several years. The challenges for this agency would be: hardware maintenance costs, IT staff that have to look back technology-wise in order to maintain the system and software built on technology that is rapidly becoming obsolete.

In such a setting, the organization with an outdated technology stack will face ever-growing costs of maintaining their systems.

  1. From a hardware perspective, older devices tend to be less reliable, and fixing a hard drive failure may be more costly simply because old technology is not as readily available on the market.
  2. From a software maintenance perspective, every time a new version of Java comes up, or an Angular update, the software supplier will have to patch the code in order to keep the application in working order. However, with old versions, there may be a need of software rebuild from the ground up, known as software refactoring. This is a costly process, and it may even be that the software supplier is not offering such a service any more.
  3. From a cost perspective, the IT staff involved is becoming increasingly expensive, pushing total software services spending over $806 billion, and IT services over 1.3 trillion in 2022.
  4. Perhaps the greatest threat is that IT staff that want to grow their career will move on to newer technologies. This puts companies with old technologies in a precarious position of risking a situation that may not have a solution simply because such staff are extremely difficult to find.

The continuous trend of IT modernization, especially in digitalization of processes and migration to cloud solutions, may leave organizations with too large of a technology gap, therefore risking the organization’s ability to ensure operational stability. More specifically, organizations that use older document management solutions face a threat of being left behind and unable to provide constant, reliable services to end users.

How should your organization leverage this growing trend?

For CIOs this is a very dynamic period, as we have covered in our previous blog post. But a newer report quotes a clear warning by John-David Lovelock, a distinguished researcher and vice president at Gartner, “Organizations that do not invest in the short term will likely fall behind in the medium term and risk not being around in the long term.”

Solution providers move decisively toward using hyperscalers for growing data needs and offer cloud-based document management solutions. This creates an opportunity for organizations to acknowledge this movement, and swim with the current.

Organizations that use paper-based or on-premises document management processes and technology can achieve several goals by moving to cloud computing and SaaS-based document management solutions.

First, there’s the cost of ownership of old infrastructure that would be outsourced to the SaaS provider. This releases resources that can be used elsewhere in the organization.

Second, with a FedRAMP solution for document management offered by Armedia, organizations achieve legal compliance too.

Third, by migrating to a cloud solution for document management, organizations are positioned to avoid any IT talent shortage. The entire technology department is replaced with a company that is focused and well-staffed to maintain the cloud-based solution.

How should your organization leverage this growing trend

Conclusion

Gartner’s forecast published in April 2022 got a new update on July 14, 2022. In both versions of the study, the figures all point to a healthy increase in spending. While hardware spending on consumer-oriented hardware is seeing a drop of 5.5%, the rest of the IT spending segments are growing decisively.

Organizations that are keeping things close to home, with in-house data centers and in-house IT departments to ensure continuity of operations, will inevitably feel the pressure.

For CIOs, it is becoming clearer that acting fast and modernizing sooner has its distinctive and obvious advantages. With this step, organizations can decouple key business processes from their in-house staff. Allowing solutions providers to take the brunt of price hikes and staff turnaround frees up resources and energy for more mission-critical thinking.

Allowing old technologies and equipment to retire, while replacing all that complexity with a simple, SaaS-based solution, can help organizations focus more on serving end users.

If you need help navigating this inevitable shift to outsourcing technical jobs and technology to external service providers, keep in mind that FedRAMP is there to offer guidance. Looking for FedRAMP approved document management solutions and cloud computing solutions are a safe way to join the IT modernization trend.

Armedia is a veteran-owned solutions integrator for over 20 years. We have invested heavily in cloud computing and document management is one of our key focal points. We have helped numerous private and government agencies and have our own FedRAMP cloud computing solutions.

For more info, feel free to reach out to us.

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