Quick Overview

• EBOS Group is on a growth trajectory, acquiring 4-6 companies each year, necessitating continuous integration and IT infrastructure updates.
• The firm’s structured strategy for merging legacy systems mitigates risks and lowers maintenance expenses.
• EBOS employs a ‘cloud-right’ approach, striking a balance between cloud and on-premise solutions tailored to specific applications.
• Third-party maintenance providers are frequently engaged by EBOS for legacy systems, ensuring nationwide service and quick response capabilities.
• Challenges arise in maintaining essential applications on outdated hardware, demonstrating the importance of dependable third-party maintenance assistance.

Image credit: EBOS Group

EBOS Group’s Technology-Led Growth Strategy

As a prominent marketer, wholesaler, and distributor in healthcare, medical, and pharmaceutical products, EBOS Group is carefully expanding its reach. With approximately 5000 employees across 108 global locations, the company acquires between four to six new businesses each year. According to Con Pazios, Head of IT Operations, this acquisition strategy mandates EBOS to maintain an ongoing process of integration and IT system reconstruction.

Structured Legacy Environment Integration

In alignment with its strategic initiatives, EBOS has established a structured program for integrating the legacy systems of newly acquired businesses. This program plays an essential role in mitigating risks and diminishing maintenance costs. Upon an acquisition, EBOS assumes legal accountability for the IT environment of the new entity, which prompts the swift development of integration plans.

“Managing technical inheritance and technical debt presents substantial challenges for us,” Pazios noted. The process begins with securing the newly acquired environment, followed by a thorough evaluation of existing physical hardware, virtual servers, and domains. Subsequently, new servers are established, and data is transferred, allowing for the potential decommissioning of the obsolete infrastructure, contingent on environmental complexity.

The ‘Cloud-Right’ Methodology

While migrating to the cloud is typically viewed as a standard approach, EBOS employs a more nuanced perspective. The organization follows what it calls a ‘cloud-right’ strategy, which signifies that not every workload is redirected to the cloud. For instance, certain EBOS warehouses necessitate operational technology (OT) infrastructure that demands extremely low latency, thereby warranting on-premise server solutions.

“If it makes sense to migrate to the cloud, we will certainly proceed, and if modernization is feasible from that point, that’s advantageous,” Pazios elaborated. This methodology enables EBOS to harmonize the advantages of cloud solutions with the distinct requirements of its operations.

IT Modernisation Challenges

Despite the company’s concerted efforts to expedite IT modernization, the timeline can often extend. During these transitional phases, EBOS might need to utilize older, less reliable equipment. In such instances, external Managed Service Providers (MSPs) may be called upon, especially when confronted with intricate or unfamiliar network infrastructures.

“We might acquire a business with a network setup outside our internal capabilities, so we depend on outside MSPs for support,” Pazios remarked. This dependence spans not only to hardware but also to the overall management of the platform.

Significance of Third-Party Maintenance Services

Given the diverse technologies EBOS encounters through acquisitions, there have been cases where aging equipment posed notable risks. A relevant example is a 12-year-old IBM chassis located in Adelaide, responsible for running a critical business application. This device was functioning in a partially vulnerable state with inadequate maintenance support.

When a motherboard component failed, a third-party maintenance provider was able to quickly deliver replacement parts, restoring functionality to the device. This incident emphasized the critical nature of national coverage and the availability of parts when choosing third-party maintenance services.

“For us, the reinstatement of services is crucial, which hinges on response times, part availability, and the capacity to deploy assistance anywhere in the country,” Pazios stressed. He acknowledged that the role of third-party maintenance is likely to remain integral in the EBOS environment.

Conclusion

EBOS Group’s strategy centered on technology acquisitions serves as a pivotal element of its growth in the healthcare industry. Through a structured integration of legacy IT environments, the organization effectively lessens risks and maintenance expenditures. The ‘cloud-right’ approach of EBOS ensures that workloads are appropriately aligned for either cloud or on-premise implementations, informed by specific operational requirements. In spite of the modernization challenges, EBOS strategically utilizes third-party maintenance services to guarantee the dependability and permanence of essential systems.

Q: How does EBOS manage the integration of newly acquired companies?

A:

EBOS employs a systematic integration program for legacy systems, commencing with securing the acquired environment, evaluating existing hardware, and subsequently transferring data to contemporary servers. This strategy minimizes risks and reduces maintenance expenditures.

Q: What delineates EBOS’s ‘cloud-right’ strategy?

A:

The ‘cloud-right’ strategy represents a balanced approach where EBOS assesses whether workloads should transition to the cloud or stay on-premise based on specific operational necessities. Not all workloads are guaranteed to be migrated to the cloud.

Q: What prompts EBOS to engage third-party maintenance providers?

A:

EBOS engages third-party maintenance providers for older systems, particularly when internal expertise is insufficient or when confronting outdated hardware. These providers deliver quick response times and national coverage, which are vital for maintaining critical business applications.

Q: What obstacles does EBOS confront during IT modernization?

A:

Modernizing IT environments is a lengthy endeavor. Throughout this process, EBOS frequently needs to sustain older, outdated equipment, which poses risks. The organization occasionally necessitates external assistance to adeptly manage these environments.

Quick Read

• Blackwoods, an Australian supplier of industrial and safety products, is managing the intricacies of hybrid computing settings.
• The organization is focusing on cloud transition while still making choices about keeping on-premises equipment.
• OEM maintenance is favored, yet third-party support is being evaluated for aging systems approaching their end-of-life.
• Increasing costs and security issues are shaping maintenance plans.
• The worldwide IT hardware market is projected to expand significantly, indicating ongoing demand for hardware upkeep.

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.