“A lot of people think that physical infrastructure in enterprises has gone away, but that’s not the case,” he says. “We’ve got Azure and Amazon but there’s always going to be a need for civil infrastructure on premises. People still need to have their own hub on premises to run specific applications because of security reasons, or they’re bespoke applications, or that they just won’t run in an environment that is managed by a third-party owner."
“The other big challenge with owning that hardware is that you get five years out of it and then you have to replace it. That can be managed, and some companies will always give you a way to finance your hardware and pay for it over five years so you’re essentially changing your Capex model into an Opex model,” continues Lockhart. “Planning and understanding where your business is going to be in five years is a big challenge, but you’ve got to make your best stab at it. The problem then is if you don’t get it right and you have to upgrade a year later, the kit you buy then is out of sync from an age and a service perspective from all your other kit, you have warranty of different years, and trying to align that all your network, server and storage equipment is on the same level and age.”
“The notion that big companies are moving away from having their own physical infrastructure is a myth. But what we do see however is that rather than having it on their own premises, they might move it into professional data centres and have someone else manage it for them.”
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