The Cost of Digital Transformation: Scaling for Success

Lenley Hensarling
Chief Product Officer
April 27, 2023|4 min read

Business leaders understand that technology is critical for future success and growth – but they are also facing some sleepless nights over the escalating costs of that technology and whether they’ve hit the wall in terms of what their technology can provide. Such concerns are valid, of course. Customers have told us that while they’re not losing money yet, they’re starting to feel like margins are being compressed as digital transformation costs are rising faster than the top line.

The good news is that such challenges can be addressed in a cost-effective manner. Aerospike is a flexible and powerful multi-model real-time data platform that provides not only scale and consistency – but also a low total cost of ownership for even worldwide operations.

By working closely with our customers, Aerospike is able to provide the kind of personalized services that target customer needs. For example, one customer in France realized significant total cost of ownership (TCO) advantages from Aerospike because they went from thousands of servers to support their data demands for their applications to just hundreds of servers. As a result, this company has closed many data centers, saving millions of dollars while delivering greater operational efficiencies.

Such savings are vital in today’s economy. Last year, companies spent some $1.6 trillion on digital transformation, and that amount is expected to hit $3.4 trillion by 2026. More companies are also learning that they need to be able to scale quickly once they make those transformations, and that’s where Aerospike can be so critical because our capabilities enable predictable sub-millisecond performance from gigabytes to petabytes.

Every company – whether a start-up or a business that’s been around for 100 years – needs to upgrade its digital capabilities to remain competitive and thrive in today’s economic environment. Data is required to understand customers’ needs better and provide more personalized service as quickly as possible. Will a customer sit around for 30 to 40 seconds to receive an automatic offer for a purchase? No. Do you need to automate more decisions for greater efficiency in customer interactions and to ensure better security? Yes.

But collecting and using all that data can also be cumbersome and expensive if the right solution isn’t used – and this can be disastrous to a business if it can’t scale quickly. You need to know that your throughput demands can be met, not just when there are 100,000 customers on your site or application, but even one million or two million. At the same time, you need fast transactions in the millions-per-second range. One of our customers, a brokerage company, runs 12 billion transactions on Aerospike every day.

There’s no way around the fact that costs will increase as your business expands – it’s bound to happen. I’ve talked with some companies that use open-source simply because it’s easy to use. But as transaction volumes increase, the reliability of maintaining those transactions becomes a problem. Performance becomes unpredictable. Where do you go from there?Perhaps your company is just starting out – you might think you don’t need to scale to petabytes just yet. But what about in two years? How many customers will you have? How many transactions per second will you be doing? Will you be able to handle millions of customers overloading your applications?

The point is: why not implement Aerospike from day one so that you’re not scrambling two years from now to quickly scale up without losing customers? Why not invest in a reliable, consistent product now that will provide a lower total cost of ownership, even as your business grows?

In today’s economy, inflation continues to drag on business profits, supply chain glitches remain, and the demand by investors for accountability in tech spending only grows. A proven solution like Aerospike for your digital transformation initiatives can be the greatest tool for saving money while growing in a competitive environment. If you make the right choice from the beginning, you could scale forever.