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Cloud computing can slash IT expenses by half, DataOne executive says

Computerworld Philippines staff | May 21, 2013
In today's competitive business landscape, CEOs and business owners are continually seeking ways to do more with less.

In today's competitive business landscape, CEOs and business owners are continually seeking ways to do more with less.

Improvement of the company's performance is still critical and highly-important among decision-makers but they strive to achieve this with less and or possibly minimal financial investments.

DataOne Asia, the leading independent provider of IT services in the Philippines, says 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," says DataOne Asia President and CEO Cyril Rocke.

First, Rocke says 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."

"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 says that, 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". He 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."

DataOne Asia Sales Manager Olga Bautista has seen her share of companies who have leaped into the cloud to cut costs. She cites several compelling examples that she has observed through the years.

"Cloud computing has indeed reduced the expenses of some IT companies. For example, a logistics company might be required to shell out Php 30,000 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 Php 15,000 to Php 16,000 per month. As you can see, the expenses are cut in half," she says.

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


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