The word "outsourcing" is normally associated with something that's done mostly by large companies, but in fact, most small businesses start out by outsourcing many of their networking tasks. It's a norm today for the smallest companies to depend on someone else to host their e-mail services, Web services and so forth. As Companies' expand their operations, the internal network and associated infrastructure grows so big that this becomes Capital Intensive and would need to be managed by more than a few full time IT employees.
Data Centers and complementary security infrastructures are essential prerequisites for any Business operation. To manage Business operations, to communicate with customers or equip the organization with access to state of the art Business applications, these critical operations require a well designed IT infrastructure. However, most businesses conclude that the only means to have the IT infrastructure that can meet their IT initiative needs and Business objectives is to own and operate the entire IT infrastructure. This is illogical and not a good conclusion.
Hosting your own servers will allow you to get rid of the monthly fees you pay the hosting service, but to set up a server bank in house would cost you huge sums of money. You may be tempted to think that this would bring in big savings since your IT personnel are already there and may have enough free time to take on the duties involved in maintaining the servers. BUT the costs to maintain these servers and associated infrastructure can be substantial.
Consider the cost of the server hardware you'll need, and the software to run on it. That includes the operating system and any additional server software. And that's not all -- don't forget that you also need client user licenses for each user or device that accesses the server. Those hosting fees may start to look a little better when you consider these upfront costs.
On the other hand, the hardware and licensing fees are one-time costs (at least until you decide to upgrade), whereas the hosting fees go on month after month.
A better alternative is to adapt a 'Hosted IT Infrastructure' with the Software Solution integrated, which has near and far term financial benefits. IT costs can be cut up to 75%!
The physical location of the IT infrastructure is immaterial to users. The globalization, pervasive high speed Internet access enables users to access the Application, files, emails and application servers from any location.
Add to it, the high costs of shelled IT manpower to manage the infrastructure and the costs of power for servers, security gateways, routers, air conditioning and lighting - the Hosted option is always a good choice.
Managing IT infrastructure by its very nature is a technical activity best left to Professional providers.
To summarize professionally hosted Solution provides the following Benefits
• Dramatic Cost Savings
• Greater Control over critical operations without increasing Internal Staff
• Professional Management
• Low Business Risk
• Minimal Capital Expenditure
More about 'Software as a Service'(SaaS), the new delivery model in the next article.
Sunil V Rao, Director, Business Development, India & SEA, Enzen Global Solutions
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