How Companies Are Saving Money by Deploying Computers in the Cloud

Your server and computers can be deployed as cloud resources
that you access using a smartphone, tablet, PC or Mac

Two Case Studies

I found these case studies fascinating in their scope and impact on how businesses are changing they’re implementation of technology to save money. The first is from a Microsoft case study on Target stores, a national retail chain that is saving BIG by moving its servers to an on-premise cloud. Target has traditionally deployed seven servers at each of its stores to track inventory, run cashier terminals, and support other workflows. With over a thousand stores spread across the nation, that is a lot of servers! The company experimented with a two-server private cloud appliance and discovered that this new appliance could easily run its seven application and database servers. Furthermore, the implementation offered significant cost savings through reduction in hardware, energy, and labor costs.

The second is from a Channel Cloud case study on a fast-growing professional services firm that saved BIG by moving its entire office network to a data center-hosted public cloud platform. The firm had five servers that were reaching end-of-life and approximately forty computers. They moved their office network consisting of the servers and computers to a public cloud while leaving printers, scanners, and thin clients at the office. They eliminated a large capital expenditure by ditching on-premise servers and computers and lowered their monthly costs for technology when all hardware, energy, and labor costs were factored in.

On-Premise Private Cloud and Hosted Public Cloud

In the first case study, Target has an IT division to manage technology and support its stores from a central location. The company invested in a private cloud appliance that greatly reduced the time it takes to initialize and configure the technology needed to power a store. Target also benefited from the server failover and business continuity features built into the appliance. Here is how Target saved money:

• Reduced hardware and energy costs for the 2-server private cloud appliance that handles a 7-server workload;
• Significantly reduced the time needed to initialize and setup the 7-server workload when setting up stores, thus saving on expensive labor costs; and
• Reduced average downtime companywide due to failover and business continuity built into private cloud platforms.

For a successful private cloud deployment, you need to ensure power redundancy at your office and access to private cloud appliance support.
 
The second case study is an example of a hosted public cloud. The professional services firm was able to retire its old servers without buying new ones, thus preserving cash. Also, it no longer needed expensive on-premise technology management because helpdesk staff could handle, with support from its technology provider, even the most challenging of issues. Here is how the professional services firm saved money:

• Eliminated capital costs associated with new server acquisition by deploying virtual servers in a public cloud;
• Eliminated overhead labor associated with dedicated technology management by having generalist help-desk role take care of technology support needs; and
• Virtually eliminated loss of production associated with server downtime due to 99.9 percent server uptime guarantee provided by a professionally run data center.

Much like the electric power plant made electricity into a commodity that anyone could consume, the delivery over the Internet of data processing power and storage from massive data centers is creating a fundamental shift in how businesses acquire and use technology. In the two case studies, the businesses reduced capital outlays toward hardware and took advantage of automated system deployments and pooled support resources. We are slowly but surely moving toward the time when many office networks will reside in data centers.

Conclusion

Implementations of complete office networks in the cloud are not commonplace yet, but it is important you be aware of the trend and be ready to take advantage of such an implementation when the time is right. These implementations deliver savings by allowing you to leverage the power of a massive computing infrastructure and support process while paying only what you use. The more technology-dependent your business and the more standardized your business processes, the quicker you are likely to find yourself ready to jump on-board this technology as a service platform.

About the Author

Ranjit has been writing on computer topics since 1987 and has authored five books on CAD (MicroStation and AutoCAD). His next book (sixth) is on success in life and business (Be-A-Teacher.com). He is the founder of RAM Corporation, a licensed Professional Engineer and the Chair of the American Society of Civil Engineers National Capital Section's (asce-ncs.org) Automation Committee. He welcomes comments and feedback via email. To email the author, use the Contact Us page on this Website.