Here is a short, true story that you might recognise from working with your portco tech leaders.
PortCo A is a PE-owned business creating a Multi-tenant SaaS platform. They also have a monolithic application that they want to unify with their new cool application. They ‘need’ to migrate to AWS.
To date, they have migrated 10% of their applications into AWS.
OK, so what does this have to do with value creation?
They already have 4x more infrastructure than they need.
The 10% they migrated to AWS accounts for 30% of their total tech spend.
Some straight-line math would see their tech infra spend grown from $10m P.A to $30m P.A, overnight.
Why did they ‘need’ to migrate to AWS in the first place?
Was it for cost efficiency? Or performance? Or bringing new applications or services to market quicker? I don’t know because they didn’t.
Most tech teams in 2022 are running significant change programmes in the form of migration, transformation, or refactoring. Why?
Here are three great examples from the best tech teams as to why you might embark on significant tech change
To remove barriers to growth, bringing innovative tech solutions to the board. Removing the friction in making creative business change.
To reduce the cost to service an individual user. The cloud might be the key ingredient to make this happen long-term.’
To improve technology-related churn, NPS changes and customer survey results. New services and features might be missing; getting them to your customers faster is critical.
Where does tech change sit on your portcos agendas for 2022?
How easily can your portco tech teams describe the value of their technology change? How does this information get shared with the board? Who is challenging the why?
The status quo won’t change itself.
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