Friends,
“Cloud” computing has been on minds of IT professionals for several years. Like any other IT infrastructure approach, cloud computing has its advantages and disadvantages. One of the key advantages is that because software applications are in the “Cloud”, and delivered as a service, it does not require any additional hardware or software on premises in order to take advantage of the latest and greatest in technology.
Compared with legacy approach to IT infrastructure that some call “give me all your money, upfront please”, cloud computing approach a.k.a. Software as a Service, or simply SaaS, seldom requires any up-front investments, and can help businesses save significant dollars not only on hardware, software and appliances, but also on maintenance and support.
Have you ever come across a business (non-IT) with less than 100 employees, all in a single office location that had 10 IT professionals on staff? I have, and trust me, I asked the question. The answer did not surprise me. The company utilized eight disperse systems developed on an ad-hoc basis. No wonder they needed so many managers, developers, and systems administrators.
While this example may not be as common, many businesses have no concept when it comes to IT staffing. At times they hire IT professionals to please CEOs, board members and other powerful stakeholders that start panicking the minute one of the core systems goes down. Under standard scenario, CIO runs into CEO’s office with his eyes wide open and a bit red due to high blood-pressure, and asks for more support staff to “support” and “maintain” that “god forsaken” system. More effective and visionary CIOs may decide to provide additional training to the existing staff, or outsource maintenance and support all together, so that there is a vendor to blame should anything go wrong.
Bare with me. I will get to the point in a jiffy.
We all know that the biggest asset of any corporation is its human capital. At the same time, it’s the biggest cost. When you have a 60k a year employee administer a 10k server, something just doesn’t add up. In short (I am getting right to the point, promise), something needs to be done to run lean and mean making money in the process, or serving public providing high quality services.
Cloud computing or SaaS, may provide your business with competitive advantage, reduce or eliminate IT support and maintenance costs, and protect your electronic assets. In addition to that, many SaaS offerings provide excellent disaster recovery and business continuity platform. For example, if on premises datacenter, a.k.a. server room burns down, or gets flooded, and your network administrator did not check integrity of backup tapes that you are sending to the bank vault on a weekly basis, you will lose vital business information. What’s going to happen next? A business will most probably will go out of business in the next three months. Gloomy picture, isn’t it?
Now imagine that you are using let’s say Google Apps to run your business. Your email and documents security reside within world-class datacenter, and even if your office is gone off the face of the Earth overnight, you and your colleagues can conveniently stay in their homes and still have access to the corporate data without interrupting your business. Sounds good? Hang on, it gets better.
Let’s say your company is working on securing a new contract with a large client, and needs to expand, and upgrade some of their back-office and information security systems in order to successfully secure the contract. Legacy approach to IT infrastructure suggests that you have to quickly call your suppliers, and order a lot of large and small boxes, software licenses, maintenance agreements, software protection plans, hardware warrantees, antivirus licenses, antispam solutions, extra data storage, more boxes, backup software licenses, backup tapes, more maintenance agreements, extra bandwidth, and the list goes on. And, when you think it’s over, you get hit with a dilemma. All this stuff you just purchased, needs to be unpacked, tested, setup, configured, administered, and… Wait, there is more, it needs to be supported and maintained on an on-going basis.
Google Apps addresses most of the issues above since it’s virtually maintenance free, and there are no boxes or licenses to purchase. Or, and it costs only $50 per user, per year. How much did you spend on coffee last year? You do need internet bandwidth though in order to access your systems, but considering that cost of bandwidth is declining, it shouldn’t be a deal breaker.
As I already mentioned, SaaS offerings have disadvantages, but that’s another story.
By the way, if you’d like to learn more about SaaS and Google Apps specifically, follow this link. It will change your life.
Until next time,
Steve Driz
Filed under: Cloud Computing, Cost Reduction | Tagged: Cloud Computing, cost savings, Google Apps, lean IT, SaaS, SaaS advantages, software as a service | Leave a comment »