Cloud Technologies Simultaneously Eliminate Capital Investment and Operating Expense

“If it sounds too good to be true, then it is.” I am here to report the old adage is officially defunct! Usually businesses need to invest up front to reduce ongoing expenses in the future. You know, like buying an expensive hybrid vehicle to reduce ongoing fuel costs. Historically, because executives usually don’t understand IT, they cannot manage or make confident decisions themselves. Businesses suffer from the double whammy of technology sprawl: ever increasing capital investment plus growing operating expenses. The more invested, the greater the cost to maintain and manage. Maybe, “If it sounds too bad to be true, then it is?”

The good news is there is a new paradigm: a better way to deploy computer networks and technology. It is real, it is now, and it is safer and more secure. Oh, and it costs a whole lot less. Too good to be true?

Let’s get real and specific. It doesn’t matter who’s services you use: Microsoft, Google, Amazon, or IBM; or in what combination. All are offering the promise of this new paradigm. It doesn’t matter if you have 5 employees or 5,000. The simplicity, savings, and reliability just get more impactful as your organization grows.

The traditional problem: Until just a couple years ago, if a company wanted to install a server of any type for any purpose, they would need to buy a really expensive server. To be reliable servers must contain two of everything in it, for maybe $6,500. Two of everything? Two or more hard drives, power supplies, etc. This is called redundancy. Can you spell MORE MONEY? But every computer inherently has single points of failure. If mission critical, an identical server would need to be purchased, actively replicating all the information of the first on the same premises. This is the only right way to do it. Most smart folks still deploy this way. Let’s just say we are up to 2 X $6,500 = $13,000. Now you need to make safe keeping copies of your data – you need backup – how much is that? That’s going to have a cost as well. If you have multiple servers, let’s say the cost is an extra $1,000 in this scenario. We are at $14,000.

What if the world is faced with erratic and extreme weather patterns that won’t quit? Or what if the power goes out in the summer? Or a rogue employee does the dastardly deed of data destruction? Happens all the time, sadly. This is why companies must have a disaster recovery (DR) plan. Simply put, this is where a remote location on a separate communication and power grid is set up. All data is constantly copying to this DR site. If your main office goes down, everything automatically fails over, and all that employee productivity continues remotely without a hiccup. Double the capital expense from the paragraph before this, including backup. Now we are at $28,000. And remember, we are only talking about one server here. What if you have 10? We are up to $280,000, not including all sorts of other networking equipment like routers, protection devices and software subscriptions! Make it $300,000. This is very real. I forgot to mention, remote data center space has to be rented along with high speed communication lines. More big operating expenses I won’t detail here.

I know I am starting to lose you here, but as you can clearly see, IT just grows and grows. And your payroll does, too because somebody has to manage all this unwanted growth. Incidentally, most sophisticated customers we encounter make all this investment and their DR doesn’t actually work properly. It’s an internet pipe dream! But executives have to say, “Yes” because they don’t know enough to say, “Enough!”

The Cloud Solution: What if there was a service whereby you could place that first server we discussed with a software-created “virtual” version…into a data center that provided the redundancies, high availability, and backup, and you didn’t even have to pay to physically maintain it all? A magic world where you don’t have to buy multiple iterations of servers, nor their software. Sound too good to be true? It is not. That same virtual server may cast as little as a $150 per month. If you needed ten servers, we are at $1,500 per month. You don’t buy the hardware, and you pay for only what you use in terms of computing power and storage. Someone may need to administer your software, but not manage your infrastructure (all that old hardware and gear we discussed). Never upgrade or refresh your hardware again. No more DR site. And it’s safer and more secure than any one company can provide for themselves. This technology is so elegant that the solution takes half the time to discuss than the problem! $1,500 per month, or $300,000 invested plus a full time employee to manage it. You are a businessman. Too good to be true? Nope.

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