Into The World of Diversification

Consult our expert

When delving into the minds of conglomerates, one major technique that they will inevitably fall back on is diversification. By expanding their reach by forming subsidiaries to enter various businesses, they can reduce investment risk. A subsidiary's earnings loss can be offset by the profit of another. However, this increases the danger of higher operational costs and incapacity to sustain performance efficiency.

Throughout AVM Cloud's 13 years of service in this market, we have encountered numerous challenges faced by conglomerates such as data security, business continuity, IT infrastructure rigidity, operational costs, and many more. Let's delve deeper into these issues and explore how we may contribute to their resolution.

Business Obstacles

Conglomerates Digital Transformation Challenges

  • Difficulties to Stay Compliant with Regulations

Having subsidiaries in multiple industries and jurisdictions necessitates maintaining compliance with a wide range of regulations and standards. Conglomerates have to put much effort into meeting regulatory requirements especially in the IT Infrastructure category. Failure to comply will be detrimental to the businesses as a whole.

  • Increase In Operations & Management Costs

Conglomerates typically operate across multiple industries and have diverse businesses units. Managing and coordinating such a complex network of operations can be costly due to the need for specialized management teams, communication systems, and coordination efforts

  • Lack of Flexibility in IT Infrastructure
    [Leading to Increase in Turn Around Time (TAT)]

In the huge IT Environment of a Conglomerate, it is typical to find issues where operational and strategic decisions could not keep up with the pace of evolution and growth of the virtual infrastructure. To meet the growing needs, a dynamic, scalable and flexible IT Infrastrucuture is imperative.

  • Lack of Contingency Plans – Data Security & Business Continuity

Conglomerates have interconnected operations, with dependencies across different business units. If one unit or location experience a disaster or disruption, it can have a cascading effect on the entire organization.


Tackling Conglomerates Cloud Issues

  • Flexibility to Scale & Multi-Tiered Storage

For customers that have difficulties in scaling up or down their Cloud Environment whenever, we offer our customers the ability to do along with the option to upgrade current storage to a multi-tiered storage to ensure a performance-based critical or non-critical workload.

  • OPEX (Pay-Per-Use) Model

Understanding the fact that many organizations will look for every possible way to save costs, we now provide our customers with an OPEX or Pay-Per-Use Model where customers are charged based on usage/subscription instead of the usual CAPEX Model. This helps customers to save costs in many areas.

  • Compliance With Sovereign Cloud

As a VMware Certified Sovereign Cloud Provider, we are equipped with the knowledge and expertise to provide a Cloud Environment that fully complies with local regulations while also preventing foreign governmental interference.

  • State-Of-The-Art Backup & Disaster Recovery Solutions

Having partnered with Veeam almost since our inception, we offer the best Backup and Disaster Recovery solutions with all of our data centres located in Malaysia with a Disaster Recovery Site compliance of 30km.

  • Siloed Datas

Data within the chain are stored and managed separately, often in isolated systems or databases that do not easily communicate or share information amongst the chain.

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