How does the Cloud help you reduce costs ☁ 💰

The total cost of ownership (TCO) is an iceberg model concept for cost price and profit analysis. The purchase price of 15 percent above water or surface. The hidden cost of 85 percent is underwater

At Synergetic IT, we understand that you want to get the best return when it comes to your business and its IT infrastructure. That’s why we wanted to walk you through a small example of how we go about building and maintaining your infrastructure.

We believe that using the cloud is better from a business perspective on multiple levels. It can help you reduce your direct costs, indirect costs, and hidden costs.

Let us explain three critical business pointers when it comes to IT Infrastructure:

Direct costs

These are about buying the necessary hardware for your server room, network setup, and so on.

You need to buy multiple servers, network switches, appliances (firewalls, etc.), UPS (uninterrupted power supply), storage appliances and preferably everything that is “mission-critical” redundant so your core business can continue during a failure or service outage.

Additionally, all this requires a server room or space to put it in and the right HVAC systems (heating, ventilation, air conditioning, and cooling) to keep it secure and in the right climate.

Last but not least, you will need basic network connectivity like internet, electricity, alarm system(s) and/or (offsite) back-up infrastructure, which could also be hybrid.

Indirect costs

These are related to things such as the personnel needed to maintain a secure and stable setup for your company. Other indirect costs could be system administrators, network engineers, third-party hardware vendor support, security guards, basic utilities and more.

Hidden costs

These are the real danger in when running a business.

What if your servers are down due to hardware failure and your employees are idle because they need these mission-critical services? Every hour could mean X employees can’t be effective and are not generating revenue and your customers aren’t getting serviced.

There are so many scenarios that are related to physical infrastructure services being down, these can be internal or external vectors and you need to be prepared for them al. We believe that using the cloud is better from a business perspective on multiple levels. It can help you reduce your direct costs, indirect costs and hidden costs.

By using the cloud, you can avoid the upfront costs of buying hardware and paying for the infrastructure to support it. You can also avoid the indirect costs of hiring personnel to maintain the hardware and the hidden costs of downtime.

If you’re interested in learning more about how Synergetic IT can help your business to reduce costs using the Cloud, please don’t hesitate to contact us. We are here to help!

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