There is nothing new about the concept of Cloud Computing, in theory it isn't much different than mainframe systems used over 30 years ago. All computing is centralized and users access the information they need from terminal devices. In recent years though, technology has advanced to deliver this type of computing on a much more efficient scale. Now working an a document, surfing the web, and using software can be accessed through the cloud just as fast, if not faster than using your desktop PC.
A great case in point of cloud computing is Netflix. The old days of driving to the video store to rent a DVD and playing it from a DVD player are fading quickly. Why invest in players and physical movies when you can just access what you want when you want it? You can now stream a movie directly to your TV, computer, or even a smart phone. You have access to the data you need (in this case 1000's of movies) on any device, and you do not need to invest in hardware to process the data (in this case a DVD player).
Fragmented Solutions
Filtering out all of the different Cloud offerings in the market today can be a daunting task. There are many vendors that provide single Cloud based solutions such as E-mail, Back-up, file sharing, infrastructure, or even software. The problem is that there hasn't been a truly turn key solution that can deliver everything you need in your business network through one single interface.
There can be savings by moving pieces of your network, like e-mail for example. But what about the rest of your network? You'll still be left with servers to maintain, staff to manage it all, data to back-up, etc. The reason why most companies have not yet totally embraced Cloud Computing is because there hasn't been a simple solution that provides everything a company needs. The goal is to eliminate as much of the liability that comes along with your IT operations from your balance sheet.
Is There Money to Be Saved?
Maybe. Looking at the true cost savings of Cloud can be complex. There are obvious cost savings when it comes to eliminating unnecessary hardware like servers and even some desktops; But if you can't migrate all or most of your network to the Cloud, the true cost savings won't really appear. What's the single biggest expense in most IT budgets? Labor.
The mantra for your company's IT should be "less is more". If you can reduce the labor and material costs you spend on maintaining a server room, troubleshooting issues, and upgrading systems, your IT budget just shrank by 50% or more. Imagine applying those additional resources towards a more efficient ERP software, CRM, or a marketing initiative.
Going with the cheapest solution may end up being more costly than you originally thought. If it can't offer everything your employees need to work in a simple and familiar delivery, what seems like savings may actually decrease productivity. After all, technology is supposed to make employees more efficient. If you can move all or most of your network to the Cloud, reduce your labor/material expenses, and ensure your employees are able to access everything they need in a single Cloud solution, there are major savings.
Potential Cost Savings
One of the big benefits of Cloud Computing is it's ability to adapt with your business. During periods of growth, companies invest heavily in growing their IT department. This means buying more equipment and paying more labor to maintain it all. During down turns, most businesses are stuck with the depreciating equipment they have invested in and need to maintain it to continue doing business. You can't really sell of parts of your network when times are slow.
With Cloud, you can scale very quickly without any additional capital expenditures. Let's say tomorrow you get a huge contract and need to hire more employees, not a problem just add them to your Cloud. If your business slows down and you have less staff, just remove them from your Cloud and down goes your IT cost. You pay for what you consume, not for what you think you may need in the future.
Empower Your Staff
Of course saving money sounds good, but to grow your business you need to make money. Making technology available to your staff when they need it is imperative to maximizing efficiencies in today's market. With more initiatives to work remotely on a multitude of devices, cloud computing makes more sense than ever. Larger corporations have already started BYOC (Bring Your Own Computer) programs where employees can use what ever device they want to work. Latptops, Macs, and even tablets like IPads are becoming more popular in the work place. Since all of the processing, data, software and e-mail all come from the cloud, the end device (PC, Mac, tablet, phone) is just displaying an image and interface to work on. Even an old desktop with minimal resources will work just fine.
So imagine enabling your organizations to work anywhere, anytime, on the device of their choice. Do you think you may get a few extra minutes of productivity each day? Will collaboration, integration, and efficiency amongst your team help close that extra deal?
Security and Reliability
A common concern that comes up around Cloud Computing is security. Often someone fears what they don't know. The reality behind Cloud Computing is that your network is placed in state of the art SAS 70 compliant data centers. These data centers have security measures in place the average business could never afford to implement. Dual power grids, cooling systems, full surveillance, biometric restrictive access, multiple gigabyte internet connections and the latest equipment an IT manager could only dream of. They are able to guarantee 99.999% uptime and full back-ups of your network.
By moving your entire network to the Cloud, a crashed computer or a lost laptop means nothing. Just login from another device and keep working...all of your data will be there waiting for you to finish what ever you were working on.
So What's The Best Solution
If you want to save your company money and maximize efficiencies, a total Cloud approach is the way to go. However using 10 different Cloud solutions to deliver your entire network still requires quite bit of management and brings integration issues.
A great case in point of cloud computing is Netflix. The old days of driving to the video store to rent a DVD and playing it from a DVD player are fading quickly. Why invest in players and physical movies when you can just access what you want when you want it? You can now stream a movie directly to your TV, computer, or even a smart phone. You have access to the data you need (in this case 1000's of movies) on any device, and you do not need to invest in hardware to process the data (in this case a DVD player).
Fragmented Solutions
Filtering out all of the different Cloud offerings in the market today can be a daunting task. There are many vendors that provide single Cloud based solutions such as E-mail, Back-up, file sharing, infrastructure, or even software. The problem is that there hasn't been a truly turn key solution that can deliver everything you need in your business network through one single interface.
There can be savings by moving pieces of your network, like e-mail for example. But what about the rest of your network? You'll still be left with servers to maintain, staff to manage it all, data to back-up, etc. The reason why most companies have not yet totally embraced Cloud Computing is because there hasn't been a simple solution that provides everything a company needs. The goal is to eliminate as much of the liability that comes along with your IT operations from your balance sheet.
Is There Money to Be Saved?
Maybe. Looking at the true cost savings of Cloud can be complex. There are obvious cost savings when it comes to eliminating unnecessary hardware like servers and even some desktops; But if you can't migrate all or most of your network to the Cloud, the true cost savings won't really appear. What's the single biggest expense in most IT budgets? Labor.
The mantra for your company's IT should be "less is more". If you can reduce the labor and material costs you spend on maintaining a server room, troubleshooting issues, and upgrading systems, your IT budget just shrank by 50% or more. Imagine applying those additional resources towards a more efficient ERP software, CRM, or a marketing initiative.
Going with the cheapest solution may end up being more costly than you originally thought. If it can't offer everything your employees need to work in a simple and familiar delivery, what seems like savings may actually decrease productivity. After all, technology is supposed to make employees more efficient. If you can move all or most of your network to the Cloud, reduce your labor/material expenses, and ensure your employees are able to access everything they need in a single Cloud solution, there are major savings.
Potential Cost Savings
- Servers: buying, maintaining, upgrading every few yeas
- Desktops: replace with less expensive, longer lasting Thin Terminals
- Licensing: Microsoft Office, server licensing
- Energy: Reduce power and cooling consumption
- Labor: Reduce maintenance, troubleshooting, helpdesk, etc
One of the big benefits of Cloud Computing is it's ability to adapt with your business. During periods of growth, companies invest heavily in growing their IT department. This means buying more equipment and paying more labor to maintain it all. During down turns, most businesses are stuck with the depreciating equipment they have invested in and need to maintain it to continue doing business. You can't really sell of parts of your network when times are slow.
With Cloud, you can scale very quickly without any additional capital expenditures. Let's say tomorrow you get a huge contract and need to hire more employees, not a problem just add them to your Cloud. If your business slows down and you have less staff, just remove them from your Cloud and down goes your IT cost. You pay for what you consume, not for what you think you may need in the future.
Empower Your Staff
Of course saving money sounds good, but to grow your business you need to make money. Making technology available to your staff when they need it is imperative to maximizing efficiencies in today's market. With more initiatives to work remotely on a multitude of devices, cloud computing makes more sense than ever. Larger corporations have already started BYOC (Bring Your Own Computer) programs where employees can use what ever device they want to work. Latptops, Macs, and even tablets like IPads are becoming more popular in the work place. Since all of the processing, data, software and e-mail all come from the cloud, the end device (PC, Mac, tablet, phone) is just displaying an image and interface to work on. Even an old desktop with minimal resources will work just fine.
So imagine enabling your organizations to work anywhere, anytime, on the device of their choice. Do you think you may get a few extra minutes of productivity each day? Will collaboration, integration, and efficiency amongst your team help close that extra deal?
Security and Reliability
A common concern that comes up around Cloud Computing is security. Often someone fears what they don't know. The reality behind Cloud Computing is that your network is placed in state of the art SAS 70 compliant data centers. These data centers have security measures in place the average business could never afford to implement. Dual power grids, cooling systems, full surveillance, biometric restrictive access, multiple gigabyte internet connections and the latest equipment an IT manager could only dream of. They are able to guarantee 99.999% uptime and full back-ups of your network.
By moving your entire network to the Cloud, a crashed computer or a lost laptop means nothing. Just login from another device and keep working...all of your data will be there waiting for you to finish what ever you were working on.
So What's The Best Solution
If you want to save your company money and maximize efficiencies, a total Cloud approach is the way to go. However using 10 different Cloud solutions to deliver your entire network still requires quite bit of management and brings integration issues.
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