How to Trim the Fat From Data Center Costs!

How to Trim the Fat From Data Center Costs

When smaller businesses look to cut costs, they commonly take shortcuts that are risky to their bottom line. They may go out of their way to avoid upgrading dated hardware, buying software licenses, or increasing bandwidth. In some instances, they layoff in-house IT support, or avoid hiring new help, even as the business grows. This often leads to a very cranky and disgruntled “IT guy” with a bad attitude as he or she runs around the office putting out one fire after another – feeling overburdened and underpaid.

Operating even the most basic data center today means recurring operating expenses that aren’t affordable for most small-to-midsize businesses.

Unfortunately, SMBs just have to accept that keeping their data center alive and kicking means significant overhead and expenses. That’s just the way it is.

Or is it? There are actually several ways to reduce data center infrastructure costs without sacrificing the efficiency of your network, server, and applications, or the sanity of your IT guy.

Rent, Don’t Own: A data center needs experienced people and a virtual, always-on, 24/7 staff of administrators, networking experts, database specialists, systems managers, and dedicated IT personnel monitoring the network. From an economic perspective, it’s simply more logical to “rent” these workers rather than hire permanent employees.

Keep Things Remote & Energy Efficient: According to a study published by the U.S. Department of Commerce, the fastest-growing sources of U.S. energy consumption are data centers. This is due to the increased power supply required to run and cool a data center. Hardware sprawl is also a problem contributor, as most businesses have space limitations and lack the available room for any additional hardware.

Embrace Outsourcing

Both of the aforementioned cost control measures can be accomplished by outsourcing data center operating expenses. Outsourcing isn’t a dirty word. Managing IT on your own is difficult and far from cost effective. Outsourcing the day-to-day IT management responsibilities through a Managed Services Provider is a strategic way to improve the efficiency of operations and dramatically cut costs.

Is it any surprise that more and more SMBs today are tapping into the full spectrum of outsourced managed services to empower their business processes and reduce overhead? Are you?

Why Should You Get On The Cloud?

A recent article by The Guardian (UK) states that the cloud industry is set to see a growth of around 30% soon. But many small and medium business owners are still struggling to make sense of the cloud and how it can benefit them. If you are one of them, then here’s what’s in store for you when you migrate to the cloud:

1. Connectivity - Being on the cloud gives you unparalleled connectivity to your data—from anywhere and at any time. All you need is a device that can connect you to the web and you are set!

2. Save On Hardware Costs - Using the cloud for certain programs spares you the cost of investing in specific hardware. Even devices as simple as your smartphone or a tablet can help you access those applications so you don’t have to spend money on dedicated hardware. Studies have shown that cloud users end up enjoying as much as a 17% IT cost reduction compared to their non-cloud counterparts.

3. Cloud Enables SAAS - The cloud allows you to use software as a service. Microsoft 365 is one such example. When you use software as a service, you enjoy certain benefits such as more regular updates at a lower cost and the ability to have anyone work on the program for you by sharing the access credentials with them.

4. More Efficient Use of IT Staff - Moving to a cloud-based environment puts the burden of maintenance and downtime reduction on your service provider. That means you can use your limited IT staff more efficiently and also don’t have to worry about the costs associated with such maintenance or downtime.

5. Improved Productivity - Studies have shown that cloud users enjoy better productivity than their non-cloud counterparts. This could be because cloud service providers are better equipped to handle any IT eventualities than the average SMBs.

So, perhaps it’s time to ‘get cloudy’ and enjoy all that the cloud has to offer your SMB. And…if you need help in doing that, we are just a phone call away!

It is Heaven! Using the Cloud to Challenge Big Business

It is Heaven! Using the Cloud to Challenge Big Business

Has anyone suggested you begin moving your business to the cloud? Cloud data storage or cloud computing? What is this, anyhow? And isn’t it something for huge companies?

In the last post we explained what cloud computing is. Simply put, it is the offsite storage of your data, and perhaps even the software packages you use. The primary benefit is pretty straightforward. Somebody else pays for all the hardware and support costs needed to store your data. You pack up all your own servers, wiring, etc. and take them to the recycling center, and save money. But is that all it is? There is a much stronger case for a small business to incorporate the cloud in their business model. The cloud allows you to become competitive with the big players in your industry.

The traditional issue holding back small business: they do not have the capital to create the infrastructure to compete with large firms. They are too small to enjoy economies of scale. One obvious area is software and hardware. Historically, the technology used by big business has been out of reach of the little guys. Most SMBs have neither the hardware budget nor internal resources to own a network infrastructure. A small business does not have capital to buy the equipment. Take a simple example: You run a storefront, but think you might be able to sell a bit more if you went online, but you don’t know how much more. You can’t justify the capital to buy the hardware, software, and the labor to design, build, and support it all. The cost of entry to the online world is just too much.

The cloud ends all of that. In simple terms, the cloud lets you rent just as little infrastructure as you need, and then lets you grow as incrementally as you like, paying only for what you use.Essentially, the cloud has become the great equalizer. The high cost of entry created by IT can be eliminated by the cloud.

What is the Cloud: A Simple Analogy

What is the Cloud: A Simple Analogy

You use the cloud and don’t even know it. Do you go to Amazon and create a wish list? Do you have an email account on Yahoo? That is cloud computing. All your emails are stored on Yahoo servers somewhere. They are on physical servers, of course, but they aren’t on your laptop. The advantage is that when you spill your coffee onto the laptop keyboard, you haven’t lost all your emails even if you never backed up your hard drive. ( If you haven’t, shame on you, by the way.)

Here is a simple analogy to explain how the cloud works and why it might be a very useful part of your business model. Picture the small, very cramped office space of a little start-up. You and a few coworkers sit in tight quarters with messy desktops buried in mounds of papers, files, and pizza boxes. There is absolutely no room for storage. (Throw the boxes out yourself. There are limits even to cloud technology) It will be a long time until you can afford a larger office space. Your building manager offers to rent you an empty file cabinet in the basement. Although the basement space is shared with other tenants, only you and your team have keys to this locked cabinet where you will store all those piles of paper. Your rent is relatively cheap compared to other tenants, since you’re only paying for the cabinet, and not the larger lockers they have leased.

Suddenly, those once covered desktops are clean, leaving space to work. More importantly, the papers are all nearby, each of you has a key, but they are safe from everyone else in the building or outside. They are also safe from spilled coffee and pizza crumbs. You’ve avoided the dramatic jump in fixed costs required to find bigger office space, when all you needed were several feet of filing cabinets. Even better, the money saved is put back into the core goal of providing a product or service to a customer.

The cloud does the same thing. You rent only the space you need, it is safer from hackers than your on-site server will ever be, secure from thieves, and protected from accident prone employees. Unlike the rest of us, cloud service providers don’t have coffee cups near their keyboards or forget to do monthly backups. In short, the cloud provides scalable storage without large incremental leaps in fixed costs you really can’t afford.