Mittelstand Businesses Need the “From Servers to the Cloud” Transformation in 2024. Here is why!

Mittelstand stands for the small and medium enterprises in Germany. These are usually family-owned companies based in smaller cities and provide the economic stability of Germany. 

Even if these companies are remarkably resilient in economic conditions, they still face challenges like skilled professionals shortage, increased competition, the rising wage, material and energy costs. 

Fortunately, most German companies see digital transformations as a core necessity to remain competitive in the market. 

One of these transformations is turning to cloud computing or hybrid cloud setups instead of traditional on-premise servers. 

However, many of them still prefer on-premise solutions and in this article we will explore

1. Why mittelstand companies prefer on-premise solutions
2. 5 reasons why the cloud is necessary to stay competitive in the market
3. How to migrate to the cloud

Why the German SMEs still prefer on-premise solutions

Many German companies still prefer on-premise solutions over cloud computing because of security, privacy, compliance and other issues. Some just avoid the complexity of migration or relate the cloud computing with high costs.

If you worry about the security, you can always choose the provider with strong security credentials, and compliance standards. You will not lose control due to service level agreements that  define the responsibilities of the client and the provider. There will be no vendor lock-in if you adopt cloud agnostic practices or consider hybrid cloud setups.

Consider that when there is careful strategic planning, and well-executed transition, you are going to only benefit from the advantages of the cloud. 

5 reasons for your transition to the cloud 

When we talk about cloud computing we mean that data is stored and managed in an online environment. Here are a few pros of cloud computing that will help SMEs stay more competitive in the market.

No more disasters!

Cloud providers offer networked backups, also all the data is stored in a virtual server which means that it can be moved from one data center to another. This means that in case of an issue you will be able to quickly restore it and not worry about your customers especially if your product is a mission critical one.

Save the money for your core business!

As we saw in the introduction, the rising wage, material and energy costs are one of the main challenges for Mittelstand companies. One of the most significant advantages of cloud computing is that you pay only for the services and storage you consume. Additionally, you can always add up services and storage. Saving the money invested in servers and data-centers can especially benefit the companies that do not have consistent high demand for computing resources.

Collaboration and remote work options

Finding true talent is a difficult challenge in today’s business environment. Cloud-based productivity tools and collaboration platforms enable seamless communication and cooperation among team members, regardless of their physical location. This flexibility not only improves work-life balance for employees but also opens up opportunities for businesses to tap into a wider pool of talent, regardless of geographical constraints.

Scale your resources and scale your business

No more big investments in physical hardware and unlimited scaling up and down based on the demand! This should have been in the first place maybe. Turning to the cloud can be extremely beneficial for seasonal products, highly growing products and all the others too due to the flexibility of managing the resources.

Get empowered by innovation

Clouds democratize technology meaning that even a small business can have access to sophisticated tools  and technologies like artificial intelligence, machine learning or big data analytics. This access empowers Mittelstand companies to innovate more quickly and respond more agilely to changing market dynamics and customer preferences.

Cloud computing offers a range of strategic advantages that can help Mittelstand companies become more agile, efficient, and competitive in their respective markets, but the transformation from servers to cloud computing must be smooth and professionally executed to prevent any difficulties for your business.

How to migrate to the cloud

What factors to consider?

Who should do the migration?

Migrating to the cloud is a huge decision and requires a thorough consideration of a few factors;

cloud readiness, cloud providers and types of a cloud setup that is beneficial for your business goals, data security, etc.

To execute a successful migration, you will need good experts who can do the strategic planning of the migration, monitor and optimize the processes and provide ongoing management of the cloud infrastructure. 

Finding true talent is not an easy task especially in the current market. Here at Das Meta we have been working on cloud infrastructure management for over 18 years now providing not only cloud migration services but also ongoing maintenance and support services. 

If you are considering the from servers to the cloud transition and looking for a reliable team of experts, let’s talk.