Cloud computing can slash company’s IT expenses by half

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IN today’s competitive business landscape, chief executive officers (CEOs) and business owners are continually seeking ways to do more with less.

DataOne Asia, the leading independent provider of information technology (IT) services in the Philippines, said that businesses can operate this way using the right technology such as cloud computing.

“Businesses that migrate their IT systems to the cloud could save at least 50 percent of their expenses. This is because the cloud minimizes the cost of infrastructure, management and support,” said DataOne Asia President and CEO Cyril Rocke.

First, Rocke said that the cloud could help companies minimize expenses on procuring and maintaining their IT infrastructure.


“Most IT users tend to underestimate the cost of procuring infrastructure. Whenever a company wants to buy IT equipment like servers, they cannot do it in a snap. They need to follow a long procurement process where they have to justify the project, write cost-benefit analyses, and submit the necessary papers to different departments. Sometimes, there’s even a need to hire IT experts that will decide which equipment is best for a company,” he said.

“In reality, companies can spend more than a year and thousands of pesos on the procurement process alone. This entire traditional procurement process severely damages businesses, and reduces their ability to react and roll out new ideas and solutions,” Rocke added.

Instead of procuring new equipment, a company can address its IT needs by looking to cloud service providers like DataOne, the company behind the enterprise cloud service known as CloudSecure. Rocke believes that moving to the cloud will downsize a company’s lengthy procurement process.

“Aside from shortening the tedious procurement process, cloud computing also allows companies to deal with reliable IT-service providers like DataOne, which lets them save time, man-hours, skills development and troubleshooting,” he added.

DataOne Asia sales manager Olga Bautista has seen her share of companies who have leaped into the cloud to cut costs.

“Cloud computing has indeed reduced the expenses of some IT companies. For example, a logistics company might be required to shell out P30,000 to co-locate their servers in an enterprise class, Tier-3 data center facility. But once they move their system to the cloud, depending on their specifications, they would only have to pay around P15,000 to P16,000 per month. As you can see, the expenses are cut in half,” she said.

Bautista also cites a familiar instance where companies would attempt to build their own
IT infrastructure, which is a risky and expensive process.

“If a company wants to build its own infrastructure from scratch, it would need to invest almost P2 million for the basic package of just four servers. Remember that the company still has to hire an IT staff to maintain the system. A staff consisting of four to five IT personnel can cost up to P100,000 monthly,” she added.

Empowering the CEO
Besides cutting costs, Rocke added that cloud computing gives the reins of a company back to its chief executive officer. This happens when the CEO’s own decisions are no longer restricted by the IT expert’s dictates concerning the brand of computers or servers the company needs.

“One benefit of the cloud is that it allows technology to become standardized. Thus, it becomes easier for a nontechnical CEO to get back in charge of his decisions instead of having more layers of experts who will filter the decision for him,” he added.

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