Kill Your Insane IT Budget Before it Kills You
By Aiyana Reyes · · 4 min read
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Kill Your Insane IT Budget Before it Kills You
Information technology is now part of every business. It is difficult to imagine any business running without IT support. It has revolutionized business by providing greater accessibility in terms of speedy communications across remote areas, storage and backup of critical data, greater transparency in business ethics and resource sharing. It is also common practice now to use advanced software application tools like ERP (Enterprise Resource Planning) which provide complete business process solutions. With ERP systems in place, the business organizations have streamlined their processes and are better equipped to grow and sustain their market share in today’s competitive market. The majority of organizations today use ERP applications whether on premise or cloud based. On premise software applications are installed, run, and upgraded in the organization’s own facility or workplace. This was common practice until the last decade. However, the business organizations soon realized the challenges associated with on premise software models.
Apart from the lack of remote access and flexibility, the major issue with on premise applications is the costs associated with IT support and maintenance to keep the application running smoothly. The IT cost initially begins with subscription charges of software licenses. Maintenance and support adds another 20 percent of cost of software license every year typically. Then comes the costs associated with integration of software applications with the enterprise environment. The other important costs are associated with IT infrastructure which is an essential requirement for applications to function in first place. This includes hardware like storage disks, networking switches, and other terminal devices like computers as well as software setups like databases, middleware, and application servers.
Even after incurring these costs, there are chances of it increasing through other instances like development, manufacturing, and environment testing.
Nevertheless, costs of utilities and power such as heating and cooling systems are significant. The replacement and upgrade costs of datacenters typically occur every three to five years. Also, the cost of data recovery in case disaster adds up along with the costs from compensation and wages of IT support staff that is instrumental in the management and functioning of applications on the system. With the growth of the organization and business expansion, the number of IT support staff and amount of spending is bound to increase.
As a result of the above mentioned costs, companies allocate huge IT budgets to cover these costs instead of using it as much needed working capital. In reality, on premise applications are very bulky and too complex to interface with other in-house enterprise applications.
The better alternative today is use of cloud based software applications. According to IDC (International Data Corporation) study, “Cloud software will grow to $67.3 billion by 2016 at a compound annual growth rate (CAGR) of 24%.”The study also revealed that “by 2016, the cloud software model will account for $1 of every $5 spent on software”.
Now the question is what is so significant about cloud applications? Basically, cloud applications are hosted on a service provider’s datacenter instead of on premise and the business customers can access their applications through a web browser. The service provider, better known as software vendors owns and bears the cost of IT maintenance and infrastructure. Let’s find out why cloud applications are increasingly gaining popularity.
- Bundle of services at low cost
The customer doesn’t need to invest much in hardware and software as the application is hosted on the service provider’s datacenter. Customer can access and use multiple software applications from a web browser without worrying about IT infrastructure capacity. - Remote Access
Cloud applications can be accessed at remote locations. This has enabled multinational companies to conduct business worldwide on a common IT platform. - Avoids Duplication
Duplication of data processes and additional IT support staff and devices are eliminated. - Improved Efficiency
Cloud applications improve efficiency of business due to flexibility and responsiveness towards changing business needs. - Increased Capacity
Cloud applications can easily address the storage capacity issue that organizations face when growing.
Cloud applications can kill the insane IT budget of your organization so the funds can instead be effectively allocated for operational and core business activities.
Business Pointers Inc. has developed the cloud based complete ERP software applications which can result in massive IT cost cutting. The ERP solutions are developed to streamline the business processes of all industry verticals. Moreover, Business Pointer’s sophisticated ERP solutions cater to the needs of modern and dynamic businesses which help organizations to achieve a competitive advantage.
Switching to cloud based applications can make a huge difference in cost savings that results in increased profitability.
Business Pointers, Incorporated
Website: www.business-pointers.com
Address: 12020 Sunrise Valley Drive Suite 104 Reston, VA 20191, Tel: 1-(703)-723-9979
Email: [email protected]