These are the types of questions we’re posing to prospective clients, and then answering together. This year alone we’ve run the numbers for companies in twelve business categories: retail, medical, insurance, finance, manufacturing, software development, law, construction, transportation, entertainment, healthcare and real estate management. You may be surprised to learn that the results have varied quite a bit.
In some cases, companies have an advanced IT infrastructure in place already, and the projected hard cost differential between completing their own top-tier IT, cloud-based solution, versus getting there with External IT, is negligible. In fact, there have been instances where the hard costs say that they should stick with the path they’re on.
For other firms, teaming with External IT has represented a relative financial windfall.
On average, across all industries, we’re currently seeing a 12.9% hard cost difference, External being less expensive.
When we then take a look at a complete apples to apples comparisons, adding in all the project costs a company would have to cover before arriving at an External IT-level solution (tier 3 or tier 4 data center, mobility, high availability, data recovery, SAS70 certification, and so on--plus ongoing data center management costs), the numbers typically make a convincing argument in favor of teaming with External IT. This year, with a proper, complete comparison, the cost savings that we can offer clients has come in between -27% and 78%, with 53% being the average.
The blogosphere and advertising barrage would lead you to believe that the cloud is both a financial and capabilities panacea. Your own truth depends entirely on a) where your company is at the moment, and b) where it needs to go.
With something as important as IT, we encourage every firm to either run their own detailed ROI numbers, or work with us to see where you are before choosing a cloud hosting partner, or going solo.
Ken Garber, V.P. Sales and Marketing, External IT:
“Rather than claim that we’ll deliver the moon and the stars, before we even know your business, we prefer to let the numbers do the talking.
“Running an ROI isn’t something we charge for. Odd, I know, but in most cases a figures and capabilities comparison shows how we can clearly enhance a company’s competitive position.
As a first step toward embracing all that the cloud has to offer, its’ only smart to begin with a good financial analysis. We’ve found, to no one’s surprise, that getting everyone on the same page, talking the same language, looking at same details and numbers is also the best way to begin a relationship. If you talk a close look at where you stand from the start, you have something solid to compare against. Run a good ROI and there is no reason why confusion or surprises have to be part of any IT solution.
If you’re serious about moving to the cloud, we’ll be happy to look at your numbers. Our process is thorough, and the results are always interesting.”
