"If a company wants to build its own infrastructure from scratch, it would need to invest almost Php 2 million pesos 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 4 to 5 IT personnel can cost up to Php 100,000 monthly."
"However, if that company opts for the services of cloud providers, their monthly bill would likely range from Php 10,000 to Php 15,000 only, again depending on their specifications or requirements. Also, in the case of DataOne, we have an expert support staff monitoring our clients' systems 24/7, so IT managers have nothing to worry about. In summary, they save P2M by not building their own basic infrastructure." Bautista explains.
Aside from cutting costs, Rocke adds that cloud computing gives the reins of a company back to its CEO. 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 non-technical CEO to get back in charge of his decisions instead of having more layers of experts who will filter the decision for him. "
"All the CEO will focus on is the performance, security and Service Level Agreement (SLA) of cloud service providers. Once the company's IT system is in the hands of the cloud service provider, the CEO can refocus on his core business and investment," he says.
Rocke also points out that cloud computing offers companies something that a traditional IT system cannot give, which is the flexibility of trying new ideas. One example is by experimenting with different programs and applications, and testing which one suits the needs of the company.
"If you're not able to experiment with new ideas, you don't know which one is going to work. With a traditional IT system, introducing a new idea entails you to go through a heavy process, which stifles innovation and creativity. This will hurt the company down the line."
"This is why the cloud is a very ideal platform for innovation because it has a low-risk procurement process where CEOs get to define what they want to buy for how long. And if ever there was a mistake in the sizing, they can be stopped or changed. At DataOne, we offer customizable cloud services that can be changed based on the client's needs," he says.
Finally, Rocke also says that companies can lessen opportunity costs once they embrace the cloud computing trend --- and soon.
Sign up for Computerworld eNewsletters.