Managed Hosting: The Four Sources of Potential Cost Savings

1
Managed Hosting

• The Four Sources of Potential Cost Savings

2
Managed Hosting

• Have significant potential for cost savings
• Industry analyst Gartner compiled a list of four
  areas they recommend customers explore internally
• Analyzing categories will give business an idea
  where their cost benefits originate, as well as
  measuring the sources of savings and how theyll
  be achieved

3
Managed Hosting

• First Source of Savings Efficiency
• Companies need to understand what savings will
  result from increase operational efficiency
• Impact of managed hosting on labor
• Impact of managed hosting on location

4
Managed Hosting

• Second Source of Savings Effectiveness
• Companies should evaluate managed hostings
  effectiveness. Organization effectiveness
  include
• Improving productivity through effective
  processes, standardization, consolidation and/or
  economies of scale
• Increasing speed with which processes are
  completed

5
Managed Hosting

• Second Source of Savings Effectiveness
• Working smarter is prime source of cost savings.
  If companies reduce volume transactions through
  redesigning, standardizing, consolidating or
  reconfiguring processes, theyll save money

6
Managed Hosting

• Third Source of Savings Information Flow
• How information flows within organization affects
  facets of operations. Using managed hosting
  services gives potential to improve flow of
  information. Better information flow can deliver
  cost savings resulting from the following
• Enhance Decision-Making organizations that have
  right information at right time, make better
  decisions and improve outcome of implemented
  strategies

7
Managed Hosting

• Third Source of Savings Information Flow
• Greater Adaptability better information flow
  and availability positions companies to adapt
  more quickly to change

8
Managed Hosting

• Fourth Source of Savings Variables
• Businesses should have managed hosting service
  provider explain how the source of savings
  efficiency, effectiveness and information flow,
  will vary over time
• Questions should be
• What are the total savings a company can expect
  each year when using managed hosting?
• How will sources of savings change each year?
• Why will these changes take place?

9
Managed Hosting

• Companies that know where there cost savings
  originate enable them to plan better and leverage
  improve performance to grow their business
• They can prepare for any dips in performance
  based on internal and external forces
• Before entering into managed hosting, companies
  need to look within organization and service
  provider for potential cost savings estimates

10
About the Author

• Chuck Vermillion is CEO and founder of OneNeck IT
  Services, a leading provider of hosted
  application management and managed services since
  1997. For more information about Managed Hosting,
  visit http//www.oneneck.com/Solutions/ManagedHost
  ing.aspx today.

11
(No Transcript)