Years ago – at the very beginning of time (well it feels that long ago), we began to think about what RedBalloon could look like. I took my hard earned $25k and visited a web developer. $25,000 later I had a very average website with no content management system. The site was ‘framed’ and even worse, not hosted.
For many entrepreneurs, technology is their Achilles’ heel. And I was no different. What I had was a business idea, and from that the site began to evolve. There was no architecture or grand plan. We just added features willy-nilly.

What started as a ‘project’ was fast becoming a massive convoluted mash of spaghetti. I had the vision to be a large business, but sitting under the bonnet the system was held together with sticky tape. About five years ago I knew that we had to invest in an enterprise solution that was rigorous, robust and scalable. The hosting, architecture, testing (and even coding in the boutique language Cold Fusion) was not going to get us where we needed to go. For me personally IT was a blind spot and every ‘expert’ was telling me something different.

The critical path to the success we now have came in the form of independent advice… not from consultants or vendors (because by nature they are not independent), but from putting together a Technology Advisory Panel (it’s a fancy name for inviting my friends who ran technology companies to lunch). It was slow and systematic, but I can hand on heart say that the investment we made is more than paying off.

RedBalloon was one of the first Australian businesses to implement the Amazon Web Services (AWS) Cloud computing platform, which was another step on the online retailer’s innovation journey. RedBalloon initiated the move to Cloud computing as part of a major digital overhaul undertaken at the beginning of 2011 followed by a two month implementation completed in mid-July last year. The transition required only 15 minutes of downtime from its previous on-premise environment at 6am on a Sunday morning. The last time the business switched server providers the high traffic website was down for almost 16 hours and a hard-drive was flown between Melbourne and Sydney to transfer the enormous amount of data. And I got lots of grey hairs!

As a fast-growing company, repeating this sort of downtime was out of the question. We realised 12 months ago that technology had become a growth inhibitor. The company was relying on 17 servers housed at a local data centre and needed many more to continue its growth.

Today, the RedBalloon platform features over 150 servers in the Cloud, which cost the same as the previous 17. Almost the entire RedBalloon business now runs from the cloud – including website, fulfilment, ERP and CRM. The intuitive model foresees more than 100 of the RedBalloon servers, which are automatically shut down overnight when not in operation; delivering flexibility, scale and a significant cost saving to the business every day.  Beyond the website, the Cloud DR program also means the physical business keeps operating if the Sydney office network is hit, as the phone runs off the internet. Practically, this frees employees to work remotely – an important feature of RedBalloon’s commitment to being a top employer.

We have gone from the ‘back foot’ to the ‘front foot’ – a painful journey, but essential to our future growth trajectory.

Grow & Scale Your Business by Naomi Simson

Tell Naomi a little bit about your business by completing the questions below. (It will take less than 60 seconds)

Answering your #1 Biggest Business Challenge question tip: 

Go beyond just saying "Poor Cashflow" or "Unreliable Team". 

Instead, give Naomi details & specifics on how this is currently your #1 Biggest Business Challenge. 

I.e. "Every month I'm struggling to pay my bills on time because there just isn't consistent cash flow coming into the business. I've tried sticking to budgets in the past & pay myself less to keep some extra funds aside for emergencies, but still every month there seems to be another financial fire to be put out. I don't know what to do about it, so I'm just grinding it out."


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