Enterprise Software and Cloud Computing Blog

How to Cut 70% of Your IT Budget

Nathan Joyes |

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I can just imagine the early conversations following the invention of the telephone… ‘It’s pretty interesting, but I’m not sure that it will have much impact… I could talk to my cousin in Toledo, but then again, I’m going to take a trip to see her in the fall’.  World changing technology is seldom recognized as such at its inception.  Having been involved with the world wide web from its infancy, I had the opportunity to hear these types of comments first hand.  I spoke with a colleague about the importance of the Internet and how it will change the world and he insisted that it would not have any significant impact.  He was already a user of email and an occasional web surfer, but he argued that he could easily function without ever having a need for the internet.  Several years had passed when I was copied on an email that this colleague had sent to his CFO.

The email was responding to the CFO’s request for faster Internet service at one of their rural offices.  My colleague responded that he had already exhausted all reasonable possibilities for increasing their Internet speed.  He went on to talk about the important role of the Internet on their business and conceded to our long-standing disagreement about its impact.

Once again, I find myself ranting about the impact of technology and how cloud computing will completely change the face of enterprise software.  Since the Internet has been an important part of how we do business for over a decade, you may be wondering what is so special about this particular point in history.  First, notice that only over the last few years has a reliable high-speed internet connection become a given for doing business.  Second, we have finally reached the point that early adopters have developed mult-tenant enterprise software that has been designed from the ground up to run efficiently in the cloud.  Software vendors are now offering their software as a service (SaaS), including system maintenance, hardware upgrades, backups and anything else required to keep the service running smoothly.  And because software vendors are providing the services for many customers on a system that was designed to be centrally managed, the costs are less.  In the words of this executive vice president at Precise, a spin-off from Symantec, ‘For midsize companies, there’s no doubt:  rip out your on-premise software apps, go SaaS and adopt the cloud across the board.’

In this article, read how this company shaved more than $2 million, or 70 percent, from their annual IT budget by migrating to the cloud and leave comments about your own experiences.

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