Outsource Savings -
Cost
comparison below is typical for a
company of 300 employees with 16
servers, each performing a
particular task such as database
servers, frontend web servers, file
servers, accounting servers, etc..
The Gartner
Group
estimates that construction costs
for the average data center amount
to $465 per square foot and can take
up to 12 months to build. This means
constructing an adequate data center
would most likely cost you millions
of dollars, not to mention the time
and personnel to evaluate vendors,
site location, building criteria,
environmental systems, hardware and
software. And, this estimate does
not include capital investments in
data processing or sourcing servers,
communication equipment and other IT
hardware. 724 Internet Solutions has
already done all of the legwork for
you.
Transferring
your data center to 724 Internet
Solutions outsourced environment
will not only save you money, it
will lower your total technology
costs by freeing up your IT staff to
concentrate on running your
business. And, by putting your
technology in the hands of a
capable, experienced provider, you
can be sure that every factor has
been considered to make sure your
applications, data and equipment are
in a stable, secure environment. We
will help you make a smooth
transition to your new
data center
by project managing and implementing
the entire migration quickly and
within your budget.
|
Comparative Cost
of In-House vs.
Outsourcing |
|
Year 1 |
In-House |
Outsourcing |
|
Server Hardware |
$100,000 |
$0.00 |
|
Router/CSU/DSU |
$12,500 |
$0.00 |
|
UPS Backup |
$20,000 |
$0.00 |
|
Software Licensing |
$25,000 |
$0.00 |
|
Hardware servicing
fees (15%
depreciation) |
$7000.00 |
$0.00 |
|
Staffing |
$200,000 |
$0.00 |
|
DS-3 Internet
Connectivity |
$35,000 |
$0.00 |
|
Initial
Configuration/Setup |
$10,000 |
$10000 |
|
Hosting Fee |
$0.00 |
$60,000 |
|
Hardware and
Software Support |
$0.00 |
$42,000 |
|
Generator Backup |
$15,000 |
$0.00 |
|
Total
Expense for Year One |
$424.500.00 |
$112,000.00 |
| |
|
|
|
Year 2 |
In-House |
Outsourcing |
|
Hardware servicing
fees (15%
depreciation) |
$7000.00 |
0.00 |
|
Staffing |
$200,000 |
0.00 |
|
Software Licensing |
$25,000 |
0.00 |
|
DS-3 Internet
Connectivity |
$35,000 |
0.00 |
|
Hosting Fees |
$0.00 |
$60,000 |
|
Hardware and
Software Support |
$0.00 |
$42,000 |
|
Total
Expense for Year
Two |
$267,000.00 |
$112,000.00 |
| |
|
|
|
OUTSOURCE
SAVINGS — YEAR
ONE
|
|
$312,500.00 |
|
OUTSOURCE SAVINGS —
YEAR TWO |
|
$155,000.00 |
Why Companies Outsource:
The cost of
implementing the necessary steps
required to host a web site,
Intranet or Local Area network is
probably the biggest reason why
62% of companies outsource
this activity. A server is merely
the first of many purchases and
ongoing expenditures required for
hosting applications. In addition to
the expected upfront and ongoing
costs, upgrading hardware and
software and replacing
malfunctioning parts can create
unexpected expenditures.
When outsourcing, the hosting
company takes care of these issues
at no additional cost. When
outsourcing, your site can be live
in days, rather than in the weeks or
months it may take to purchase
equipment and hire technical
personnel. A web hosting company has
a server to meet your needs
in stock now, and has the
personnel on-staff to set
your site up quickly.
The table above
compares the operating costs in the
first two years of an in-house
operation versus outsourcing. Of
course, these costs are estimates
and may differ for any one specific
situation. As well, this comparison
is based on a Windows 2003 solution.
|
In-house Solution |
Outsource with 724 |
Unexpected
Expenses -
Thousands of immediate
out-of-pocket expenses
Unpredictable ongoing
costs of management and
upgrades |
Predictable
Costs - Save
thousands on deployment
(724 will backup and
restore your data free
of charge) Ongoing costs
are predefined and easy
to budget Cost savings
(in-house vs. hosting at
724) |
|
Staff/Training
Budget - Costly
new hiring and training
of dedicated personnel |
No IT Staff
Needed - Lower
cost of management and
operations by using us
as your IT staff, while
you focus on
business-strategic areas
|
|
High Maintenance:
Additional features such
as web parts, templates
and single sign-on are
hard to deploy due to
the lack of: technical
expertise allocated
budget resources
|
World Class
Service:
Solutions are available
right away and the price
is very reasonable |
|
Workers'
productivity suffers
dramatically if
older version of
SharePoint is still
running in-house |
Always the
latest technology:
The best equipment and
software and support
available. |
|
Inexperience:
In-house staff may not
have the necessary
experience to support
SharePoint. If they do
have the experience, it
may be difficult to keep
them. |
Trained IT professionals
and Engineers.,
We know the technology.
You have access to our
technical and IT
engineering experts |
|
You own the hardware and
software (apply
depreciation) |
You don't own the
hardware |
Overview
Environment
Online Tutorial
