Blackwoods Implements Customized Approach for Hardware Maintenance

Hybrid Computing Environments: The Balancing Challenge

As numerous Australian companies adapt to the changing dynamics of hybrid computing settings, industrial and safety supplies leader Blackwoods is leading this shift. The firm is continually deciding what to transfer to the cloud versus what to retain on-premises—a hurdle increasingly faced by IT executives across Australia.

Roberto Calero, the cloud operations manager, plays a crucial role in these important choices at Blackwoods. He recognizes that while cloud adoption is increasing, the company still needs to preserve certain on-premises hardware, especially regarding legacy systems.

Image credit: Blackwoods.

Evaluating Maintenance Choices

Calero and his team assess hardware maintenance options individually. Although Original Equipment Manufacturer (OEM) maintenance is typically the initial choice, they also explore third-party maintenance services, especially for older systems nearing the end of life. Nonetheless, these decisions are intricate and require considering aspects like warranty voiding, geographical support availability, and the risks tied to reliance on a new support provider.

“Similar to many other organizations, we are increasingly investigating the cloud solutions,” Calero shared. “When examining the market, we don’t perceive a lack of traditional infrastructure resources, but there are definitely fewer than five or ten years ago. People are moving progressively to the cloud, and engineers are adapting their skill sets accordingly.”

Escalating Costs and Constrained Budgets

In the current economic climate, IT budgets are experiencing mounting pressure, and the escalating technology costs render maintenance choices even more vital. Ongoing inflation is another element contributing to the actual cost increase of maintaining on-premises systems. Calero and his colleagues are consistently assessing service alternatives to obtain the best value in a market where the expense of maintaining these systems is anticipated to keep climbing.

“If you’re faced with paying a premium for the expertise and resources, then the entire discussion of offshoring or turning to a Managed Service Provider (MSP) arises every single time,” Calero noted. “It hinges on the coverage and how essential that legacy data center infrastructure is for your organization.”

Security Issues in On-Premises Maintenance

A key component in the on-premises maintenance calculus is security. Numerous older systems may not comply with contemporary security protocols, posing a risk that must be evaluated against the expense of either maintaining or upgrading the equipment. “To secure services appropriately, it necessitates investment, not only from an infrastructure viewpoint but also from an application standpoint,” Calero stated. “However, the dilemma is, how do you justify the financial commitment to replace something that is still functioning, solely for the sake of security?”

Calero holds that security considerations are legitimate but ought to be reframed as a business risk dialogue instead of merely a technical concern.

Future Perspective: Increasing Need for Maintenance

These inquiries are likely to stay at the forefront for Australian IT leaders in the near term. According to Mordor Intelligence, the global IT hardware market is set to rise from US$130.86 billion in 2023 to US$191.03 billion by 2029. This growth indicates a continuous influx of hardware into data centers, all of which will require maintenance.

A recent report from Forbes pointed out that the OEM maintenance sector experienced a 4.59% increase from 2021 to 2022, with the third-party maintenance market valued at over US$2 billion in 2022. This highlights the persistent need for a well-rounded and strategic approach to hardware maintenance.

Summary

Blackwoods is managing a complex territory of hybrid computing settings, striking a balance between migrating systems to the cloud while ensuring the upkeep of on-premises hardware. With rising expenses and security challenges, the organization is employing a customized, case-by-case method to hardware maintenance, weighing the advantages and disadvantages of OEM versus third-party options. As the global IT hardware market grows, these choices will become increasingly crucial for Australian businesses.

Q&A

Q: What is driving Blackwoods’ focus on cloud adoption?

A:

Blackwoods, similar to various other firms, is emphasizing cloud adoption to maintain competitiveness and to take advantage of the flexibility, scalability, and cost benefits that cloud computing presents. Nonetheless, they still need to keep certain on-premises hardware, particularly for legacy systems.

Q: What elements influence Blackwoods’ selection of OEM or third-party maintenance?

A:

Blackwoods examines multiple factors, such as the age of the equipment, the potential risk of voiding warranties, geographic support coverage, and the likelihood of reliance on a new support provider. For older systems nearing their end-of-life, third-party maintenance may offer a more cost-effective solution.

Q: How do security concerns impact hardware maintenance choices?

A:

Security concerns play a crucial role in hardware maintenance decisions. Legacy equipment may not align with current security standards, creating a risk factor. Blackwoods must evaluate the costs of maintaining or replacing this equipment in relation to potential security threats.

Q: How is the rising cost of technology influencing Blackwoods’ maintenance strategies?

A:

The increasing expenses associated with technology, exacerbated by inflation and other variables, are raising the costs of maintaining on-premises systems. This compels Blackwoods to continually review service options to secure the best value and to ponder alternatives such as offshoring or utilizing Managed Service Providers (MSPs).

Q: What does the future hold for IT hardware maintenance in Australia?

A:

The global IT hardware market is forecasted to expand notably, leading to a persistent demand for hardware maintenance. Companies like Blackwoods in Australia will need to keep making strategic decisions to balance cost, security, and operational demands in this continually changing environment.

Fast Overview

• Legacy hardware remains a vital element in numerous organisations, especially in sectors such as healthcare and logistics.
• The upkeep and protection of legacy systems pose distinct challenges, including issues of compatibility, absence of vendor support, and security risks.
• Organisations need to evaluate the expenses associated with legacy systems against the possible ROI of transitioning to modern technologies.
• With older systems becoming more prone to cyber threats, cybersecurity has become an increasing worry.
• Shifting to the cloud is frequently considered a feasible way forward, though it necessitates strategic planning and adequate resources.

The Significance of Legacy Hardware

Despite rapid technological advancements, legacy hardware continues to be crucial in various fields. For businesses such as EBOS Group Limited, Communicat, and Blackwoods, these older systems remain imperative for daily functions. In areas like healthcare, logistics, and finance, legacy systems often manage essential operations that contemporary solutions may not yet completely substitute. Nevertheless, dependence on such outdated technology presents a unique set of difficulties.

Challenges of Upholding Legacy Systems

Maintaining legacy hardware is far from easy. One of the primary concerns is compatibility. As technology progresses, new software and hardware frequently do not mesh well with older systems. This can cause a range of problems, from mere operational inefficiencies to complete system breakdowns.

A further significant issue is the lack of vendor support. As manufacturers discontinue older products, obtaining necessary parts or receiving technical assistance to keep these systems operational becomes progressively challenging. This shortage of resources can elevate maintenance expenses and complicate ensuring that the systems function properly.

Security Issues

Another pressing issue is security. Older systems are more susceptible to cyber threats, often lacking the comprehensive security measures that modern technology offers. Furthermore, legacy systems might not benefit from regular patches, leaving them vulnerable to emerging threats. Given Australia’s growing emphasis on cybersecurity, preserving the security of legacy systems necessitates additional defenses, such as firewalls, intrusion detection systems, and vigilant monitoring.

Considering Costs vs. ROI

Maintaining legacy hardware can incur high expenses, prompting organisations to carefully assess the return on investment (ROI) when deciding on the continuation of older systems. Although the upfront costs of transitioning to new technologies can be overwhelming, the long-term advantages of enhanced efficiency, superior security, and improved support frequently justify these costs.

However, for certain organisations, the expense of downtime or interruptions linked to migrating to new systems might be too significant. In such instances, maintaining legacy hardware with a strong support framework may be the most feasible route, at least temporarily.

Cloud Migration: An Avenue Ahead

A possible resolution to the predicaments of legacy hardware is cloud migration. Transferring legacy systems to the cloud can assist organisations in modernising their operations while preserving the capabilities of their older systems. Cloud platforms provide scalability, flexibility, and strengthened security features that can alleviate numerous issues tied to legacy hardware.

Nevertheless, cloud migration comes with its own set of challenges. It demands meticulous planning, substantial resources, and a clear comprehension of the organisation’s requirements. Moreover, the transition process can be intricate, and compatibility challenges between legacy systems and cloud platforms may arise.

Conclusion

Legacy hardware continues to be a fundamental element in many organisations, particularly in sectors such as healthcare, logistics, and finance. However, the maintenance of these systems presents distinct hurdles, including compatibility concerns, insufficient vendor support, and escalating security vulnerabilities. While upgrading to new technologies can involve high costs, the potential ROI in terms of enhanced efficiency and security typically makes it a valuable investment. For some, cloud migration provides a feasible path forward, although it necessitates careful planning and resources.

Q&A: Addressing Frequently Asked Questions

Q: Why do certain organisations still depend on legacy hardware?

A:

Some organisations persist in relying on legacy hardware because these systems manage crucial tasks that newer technologies might not yet fully accommodate. Additionally, the costs and risks of transitioning to modern systems can deter some businesses.

Q: What are the main challenges of maintaining legacy systems?

A:

The main challenges encompass compatibility issues with modern technologies, lack of vendor support, and increased security vulnerabilities. These factors often render the maintenance of legacy systems more expensive and complex.

Q: How can organisations enhance the security of their legacy systems?

A:

Organisations can bolster security by introducing additional protective measures, such as firewalls, intrusion detection systems, and regular monitoring. Updating and patching systems regularly, when feasible, is also essential.

Q: Is cloud migration a practical solution for legacy hardware?

A:

Cloud migration can serve as a practical solution, offering scalability, flexibility, and improved security. However, it requires thorough planning, adequate resources, and a clear understanding of the organisation’s specific needs. Compatibility between legacy systems and cloud platforms should also be addressed.

Strategic Growth of Origin Energy with UiPath

Origin Energy has initiated a refreshed three-year alliance with UiPath, aiming to leverage process and task mining as a cornerstone of its strategic innovation initiatives. This partnership represents a crucial development in Origin’s dedication to integrating cutting-edge automation technologies into its operational framework.

Image credit: Origin Energy.

Integration with SAP ERP

In May 2019, Origin Energy migrated its robotic process automation (RPA) onto the UiPath framework, initially targeting test automation. The automation scope has since broadened to encompass processes that interact with its SAP enterprise resource planning (ERP) system. Anthony Kaelin, Head of IT Automation and Insights, underscored the importance of this three-year contract during the SAP NOW A/NZ conference, highlighting the potential for further integration of UiPath’s technology across Origin’s operations.

Process and Task Mining: The Future Ahead

Process and task mining are expected to play crucial roles in Origin’s plans. Process mining utilizes system logs and data to chart out workflows, whereas task mining tracks user engagement with these workflows. Both technologies strive to reveal bottlenecks and highlight areas for enhancement. Kaelin noted, “We aim to have the logs contribute to process mining, uncover insights, and pinpoint bottlenecks during an initial assessment of the process. Enhancing the process prior to automation will fuel our automation pipeline.”

Emphasis on Cost Avoidance

While cost savings are a consideration, Origin’s main concentration regarding its automation strategies is on cost avoidance. Kaelin remarked that 70-80% of the advantages gained from automation revolve around cost avoidance as opposed to direct savings. This tactical approach guarantees efficient resource utilization and streamlined processes for improved results.

Comprehensive Automation Monitoring

Origin has constructed its automation framework with thorough monitoring capabilities. These systems automatically generate incident tickets in the company’s service management platform, ServiceNow, whenever an automation malfunction occurs. “We interlinked UiPath output files directly with ServiceNow to trigger incidents, ensuring that nothing is overlooked,” Kaelin shared. This integration assures that any challenges are swiftly handled, preserving uninterrupted operations.

Summary

Origin Energy’s enlarged partnership with UiPath highlights its commitment to utilizing advanced technologies for process innovation. By concentrating on process and task mining, cost avoidance, and robust monitoring, Origin is prepared to boost its operational efficiency and foster innovation.

Q&A

Q: What is the primary emphasis of Origin Energy’s collaboration with UiPath?

A:

The main emphasis is on exploiting process and task mining to drive innovation and improve operational efficiency, focusing particularly on cost avoidance.

Q: How does task mining differ from process mining?

A:

Process mining utilizes system logs and data to delineate processes, whereas task mining monitors user interactions with these processes to understand execution in real-time.

Q: What significance does SAP ERP hold in Origin’s automation strategy?

A:

Origin’s automation strategy incorporates the integration of UiPath technology into its SAP ERP system for test automation and process enhancements during system updates or modifications.

Q: How does Origin ensure that automation failures are resolved quickly?

A:

Origin has connected UiPath with ServiceNow to automatically create incident tickets whenever an automation failure arises, ensuring that issues are addressed and resolved promptly.

Q: Why is cost avoidance prioritized over cost savings for Origin?

A:

Cost avoidance aims to prevent unneeded costs while ensuring efficient resource use, aligning with Origin’s strategic focus on long-term operational effectiveness.