Fast forward to yesterday during an important conference call with a vendor. Five minutes into our meeting (using GoToMeeting for a presentation) their computer crashed. We wasted 19 minutes of our 30 minute meeting while they got reorganized. I felt bad for them and our meeting was cut short because I had back-to-back meetings.
As a past CEO, CIO and EVP I could immediately identify that problem in both cases – old technology.
The recent economy has hit everyone hard, including businesses. Businesses and people alike, have been squeezed from all sides. Everyone has had to hold on to antiquated technology and extend its life-cycle.
So when is the right time to replace those antiques? The answer is simple – when they get in the way of conducting business. Although carrying out that task is harder than knowing the answer to the question. Many things can get in the way, mainly the budget. But other factors need to be considered too. Most IT departments have taken serious hits in staffing, with less personnel and fewer skill sets. Planning and roadmaps have been shelved in favor of maintaining the equipment they currently own.
There is a hidden cost in owning technology. If you look at a single business computer, it is more expensive than you think – it is not just the purchase price and you are done. Gartner Group (a technology research company) estimates a single computer cost to be in the neighborhood of $7,500 annually. This includes updates, licensing and mainly IT support. This number is down from $10,000 just two years ago. If you have a small company with five employees, then your medium budget to properly maintain those computers should be around $37,500 annually.
And there is the problem – many companies cannot or will not afford that type expenditure. Many business owners and executives are under the impression that they can purchase and forget.
This is why the cloud has become the new frontier. It is cost-effective – saving a company thousands of dollars, plus most clouds come with their own support which can save even more money. A company can pay as they go, scale up or down and let someone else worry about updates and support. Why pay $37,500 for five users when you can pay $5,000?
If your business model is flexible your migration to the cloud should be relatively painless. If your business model is uncompromising then you will definitely need a solid migration strategy before you begin. Both business should migrate in phases over a period of time, and employee training is extremely important in order to be successful. You can have the best tools and resources in place for your employees – but if they don’t know how to use them nothing is going to get done.
If you would like, we provide a Free Technical Assessment, this can be beneficial to new and startup companies that are not sure where to start. You can always find our cloud and hosted services in the right column of this page or by simply going to our website at Raven Cloud Computing.