The quest for increased B2B sales is really about enhancing the bottom line. More sales will help support a healthy profit margin only when coupled with a well-managed cost structure. So let’s look at one expense line item that is getting out of hand for a lot of organizations.
Many businesses that migrated to the cloud to cut down on expenses are now repatriating to on-premise servers. “We’ve reached a threshold,” says Daplie Founder and CEO Bryson Hill. “Cloud services just aren’t a one-size-fits-all solution anymore. For numerous companies the cost has gotten too high to justify. And when working with the tight B2B margins in most industries, you have to look carefully at all costs.”
Finding the right fit can be confusing. Last year GitLabdecided to go all bare metal and get off the cloud completely. Then, in response to their own community, they decided to stay on the cloud and improve the experience. Their decision was more a reaction to their customer base. And in B2B, keeping clients happy is paramount.
What is best for your business?
Clients need to know that their interests are first and foremost on your mind, and that means securing their data as well as providing the best customer experience. The question of whether or not to stay on the cloud should be answered by core customer considerations. “Disruption in B2B happens at a slower rate,” says Hill. “There’s more at stake. But there is also more innovation in the space. I would encourage companies to review their core commitments to their clients before making any decision. ‘Will this improve customer service? Will it help clients succeed? Will it better protect their data?’ Answering these questions properly will lead to a more profitable relationship.”
Reasons to get off the cloud.
There’s an undercurrent among larger companies that’s causing them to question their cloud services. Bill shock is at the top of the list. With the price of storage and servers coming down, the temptation is to build their own internal cloud. Other issues companies cite are latency problems, project failures and a lack of functionality in cloud services. The exodus is growing. While most cloud defectors are larger companies, small business looks to big business for philosophical direction. With all these hassles on the cloud, not to mention security concerns, companies are building their own clouds. But it comes at a cost that can’t be measured in the hardware alone. Some functionality is so complex, and so geographically diverse that the switch hides costs in human productivity.