June 9, 2020

Disrupting All Industries

Written by Tyler Moore

Cloud adoption offers significant cost savings and it also offers significant savings in terms of cycle time. Will you be a disruptor or the disrupted?

Like many of you, I sometimes utilize milestones as an opportunity to measure progress or change. A few weeks ago I crossed my one year mark with RStor. Like many companies I was issued a company t-shirt when I joined and the message on the shirt is “RStor The Distruptors”. I decided to use my milestone event to take that message to task.

Disruption As It Exists Today

First, let’s look at disruption as it exists today. Competition has never been as fierce as it is in the digital age. Markets are expanding to a global level and the one thing all markets across all industries share is that they are in a constant state of disruption. Recently we watched Hertz file for bankruptcy and back in 2018, 950 NYC taxicab owners filed for bankruptcy as they watched the value of their medallion plummet from $1.3 million in 2014 to $160 thousand within four years.  So what happened to the car rental and taxi businesses?

Obviously the entry of Uber and Lyft rideshare services with their disruptive business model and a strong cloud-based infrastructure upended both of these markets. The central figure of digital disruption is obvious when one peeks behind the curtain: yes, it’s the cloud. From automotive to agriculture, from finance to fitness, businesses are being disrupted by digital transformation powered by the cloud.

Too Much Chatter, Too Little Disruption

The reality is consistent across every industry as everything is undergoing a digital transformation. From the end product to the engineering, manufacturing, supply chain and support services or any other aspect of the underlying activity. There appear to be no exceptions to this trend.  Still today, most disruptions across industries are being led either by high- tech or technology-enabled startups rather than by the current industry leaders. These tech-enabled organizations are the trailblazers of the digital age and the enablers of disruption. What are the common features of each disruption: 

  • A reimagining of an existing value proposition or the creation of a new one 
  • Interfaces that facilitate digital and mobile interactions with users of products or services during installation, usage and support 
  • Extensive use of data and analytics, which enables experience innovation and enhancement 
  • Use of agile processes and cloud infrastructures 

Spend Time On Disruption

While the leadership at traditional companies and large incumbents ask themselves why they are getting disrupted or debate the value provided by the cloud, disruptors from the tech sector as well as startup newcomers race ahead with cloud as a given. In the high-tech industry alone, cloud development and support infrastructure is given the green light by the finance department in 90% of cases without debate. 

The reason being that extreme adoption of the Cloud delivers not just lower infrastructure costs but also faster product development cycles.

Cloud As An Enabler Of Disruption

Every product or service delivered to customers, and/or the underlying experience associated with them, is now being powered by technology. While emphasis is placed on the cost savings of cloud adoption, one must also look at the savings in terms of cycle time. Compared to traditional infrastructure and engineering models, cloud and agile development methodology typically deliver the following at the best-in-class companies: 

  • Infrastructure procurement and provisioning is often reduced from 2-3 months with on-prem models to 8 minutes on the cloud. 
  • Agile software development cycles typically reduce the cycle time from 6-9 months to 4-5 months 

Where Do Successful Teams Spend Their Time?

Where Else? They spend it on engaging with their customers and improving their business. The process of engaging with customers often has one unappreciated impact: a customer driven culture and a customer driven product or service. Thus, the probability that the product/service will be endorsed, adopted and accepted by customers is much higher. It is also during these engagement cycles that new ideas of “value” emerge, which spawns further disruption. 

Cloud-enabled companies gain not just elasticity and flexibility, but also better time-to-market and an improved product success probability. When established companies move beyond the financial ROI of the cloud and focus instead on the disruption ROI, they enable their teams to leverage their history, experience and IP in order to level the modern playing field and drive innovation further and faster. 

So, is RStor a disruptor? RStor has disrupted the pricing and business model for cloud services with its simple, predictable flat fee structure, we have changed the transport landscape with RWave and it’s 95% bandwidth efficiency at no extra cost, and the company continues to work closely with customers to both innovate and disrupt with its cloud service centric model.  So yes, RStor remains a disruptor. Learn more about the company and its services.

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