Solution Provider IDs Top Four Ways Using the Cloud Can Save
Money
Farmington Hills,
MI, December 13, 2011 – There has been a lot of debate
over whether or not turning to the cloud can really save companies
money…and it’s a discussion worth having. According to Logicalis,
an international provider of integrated information and
communications technology (ICT) solutions and services (http://www.us.logicalis.com/),
the amount of money a company can save by using cloud services is a
moving target. “Everyone’s pointing out that using the cloud
means you’ve turned a capital expense into a more manageable
operational expense. That is true, and it has significant
merit. But it doesn’t paint the whole picture,” says Mike
Alley, director of managed services solutions for Logicalis.
According to Alley, the amount of money a
company saves or spends in the cloud is directly related to the
level of services they employ, the increased operational
efficiencies and risk reductions they enjoy as a result, and the
ability to meet greater demands from the business units with the
more effective IT delivery model. Therefore, according to
Logicalis, any discussion about cost savings in the cloud has to
first consider the top four ways using the cloud can actually save
a company money.
How Using the Cloud Saves
Money
1.
Shared Resources: Whether or not the cloud saves a
company money is directly related to the level of services
provided. Shifting the procurement of capital equipment to a
third party will save some money based on the sheer volume of
purchases the cloud provider makes and the fact that those
purchases are then shared among the provider’s customers.
Sharing the cost of basic system management, software
installations, and other services, however, can reduce in-house
costs even more. Step that up with a provider that offers
high-end security and compliance support and CIOs will hit the
jackpot in cost savings across the board.
2.
Efficiencies of Scale: A serious cloud provider
will have the tools on hand to automate patch, performance and
capacity management – tools that are so costly that most businesses
skimp on or take a pass on them entirely. But, when the cost
is spread among multiple users in a cloud environment, it becomes
not only cost effective, but compelling to take advantage of the
risk protection that can be offered at a more affordable price
point through the cloud.
3. Business
Agility: When a business requires increased capacity to
accommodate the needs of a new department or project, delays
frequently occur throughout the process of getting a capital budget
approved, procuring the equipment, and installing and bringing the
new systems up to speed. With a cloud provider, gaining
access to additional computing resources is as simple as issuing a
change order; it’s the difference between having the requested
resources up and ready for service in days versus weeks or months
and paying for it through a slightly higher monthly operational
cost instead of a significant up-front capital expense.
4. Same Equals
More: What is the value of risk reduction? What if the IT
department ran smoothly every day; patches, security and capacity
issues were outsourced problems; and IT personnel could actually
focus on advancing the business’ productivity goals rather than
being firefighters? This is exactly what happens when
businesses outsource everyday IT functions to a qualified cloud
provider and have a well-defined SLA in place. The Catch 22
here is that, when things in IT go this well, demand for IT
services may increase, which may diminish operational cost savings,
but increase reliability and business productivity overall.
“When I talk to clients about the cloud, I
don’t focus as much on whether or not we can save them a few
dollars in operational costs monthly – even though we can,” Alley
says. “I ask them, ‘Is it more important for me to show you a
reduction in overall costs, or is it better for me to increase your
availability, significantly reduce your risk, and increase your
value to your company while maintaining your current
expenditure?’ Invariably, they choose the latter. That
doesn’t mean the cloud isn’t also saving them money. It means
they’re getting the concept of choosing to eat filet mignon for
beef stew prices.”
About Logicalis
Logicalis is an international provider of
integrated information and communications technology (ICT)
solutions and services founded on a superior breadth of knowledge
and expertise in communications & collaboration, data center,
and cloud computing and managed services.
Logicalis Group employs nearly 2,500 people
worldwide, including highly trained service specialists who design,
specify, deploy and manage complex ICT infrastructures to meet the
needs of over 6,000 corporate and public sector customers. To
achieve this, Logicalis maintains strong partnerships with
technology leaders such as Cisco, HP, IBM and Microsoft.
The Logicalis Group has annualized revenues of
over $1 billion, from operations in the UK, US, Germany, South
America and Asia Pacific, and is fast establishing itself as one of
the leading IT and Communications solution integrators,
specializing in the areas of advanced technologies and
services.
The Logicalis Group is a division of Datatec
Limited, listed on the Johannesburg and London AIM Stock Exchanges,
with revenues of approximately $5 billion.
For more information, visit http://www.us.logicalis.com/