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Mergers: They Aren’t Fun For Anyone

Mergers: They Aren't Fun For Anyone

When companies consolidate, there is always the question of how to combine the back-end systems. In a typical merger, the larger company dictates the hardware and software that make up the back-end processes. However, what are the options that need to be considered?

Convert to one system totally? Devise a combination of both back-end systems? Or use the opportunity to implement a new system for both companies?

Most often, in a merger situation, the answer is a combination of several of these approaches. Overwhelmingly, the larger company’s system is adopted by the smaller one, but it is not uncommon for companies to take the opportunity to evaluate processes and upgrade where necessary.

Merging data centers (especially financial institutions) can be a lot of work. A LOT OF WORK. If you are going to go through all the effort, it makes sense to ask if there is an easier way to get things done.

Things to consider when merging data centers:

  1. Do a data audit. Are you storing your data in a way that makes it accessible when you need it? Most people do tiered systems for maximum flexibility.
  2. Are you storing information that you do not regularly use on a less expensive hardware option? Many look to a tiered approach to meet their needs: Primary data storage (tier 1) for information needed for immediate recall; Tier 2 for data needed monthly, but not often; and Tier 3 for data that is crucial to business, for which a disaster recovery plan may need to be implemented. Physical Tape can be used for archival purposes.
  3. Do you know how much of your data solution is being utilized? The more you know, the less you will need to spend. If you haven’t done a thorough audit of how much data you use and what your growth plan for your data looks like, you could be paying for a much more robust system than is necessary. Many people today buy data storage that doesn’t just fit today’s needs, but will still work for them 5 years down the road. Why pay for the storage capacity that you will need in 5 years now? Scalable data is something that many overlook. Buying into a system that fits your needs today, but can easily scale to fit your needs as they grow, is a much more cost-effective way to do it.
  4. Have you updated your data storage systems to meet or exceed security requirements for your industry? Most companies try to get the most out of their hardware systems which can ultimately pose a security risk because they continue to run on legacy (outdated) hardware that may ultimately cost them in the end. The older hardware is, the more knowledge hackers have into its vulnerability. This is one of the reasons that storage-as-a-service is becoming so attractive to companies. It ensures that your software and hardware are up-to-date, and less vulnerable.
  5. If you do anything, remember to run regular backups through the migration process. Inevitably there will be stumbles, and if you regularly back up through the process it could mean the difference between a five minute and 5 hour or 5 day down time. Well worth the extra effort!

 

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