Is the Cost of Your Technology Hurting the Profitability of Your Business? 

Over the years, we have found that many businesses are overspending on their technology.  In many of these cases, their consulting firm or in-house technical team became enamored with a technical solution without examining the unintended consequences of the cost of that technology.  For some businesses, it was bringing them to the brink of going out of business.

Our cost versus benefit approach to technology avoids those unintended pitfalls.  We examine the 5 year costs of a technical solution.  For example, for a number of our clients we have examined the five year costs of their current Cloud solution versus purchasing their infrastructure in-house or at a local co-location facility.  And with a monthly increase in data in a Cloud environment, the invoice just continues to grow.

In a recent example, we have taken our client's $389k annual cost down to $18k per year with a $282k infrastructure investment.  And our solution provides more control over their infrastructure, data & security.  A conservative estimate, we will save our client approximately $1.6 million over 5 years.  Our client was so astounded by our analysis, we had to show them their Cloud invoice & prove the concept.  It's that dramatic.

Our CFO, Karen Bessette, will work closely with your CFO & in-house personnel - to deep dive into your invoices, your current IT environment, & other repetitive IT overhead including personnel costs.  With that information, we analyze alternatives with the goal of reducing your annual IT spend.  We then present the different solutions to your decision-makers.


Bottom line:  Our process can drastically reduce your overhead & increase your bottom line.


The Cloud
A Subscription-based Expense

Our engineers love the technology behind the Cloud.

The elasticity & redundancy that it provides.  They believe it is the future.

As a CFO, I see the Cloud as a subscription-based warning sign.  I've seen the costs grow from manageable to cost-prohibitive very quickly.  With one recent client, the Cloud went from $12k to $32k/month in less than four years.  Engineers are intrigued by the technology behind the Cloud, but they do not fully understand the potential negative impact that it can have on a business.  And many CFO's do not a good understanding of technology.  They can budget for the expense, but do not understand how to reduce or eliminate the expense.

There is a knowledge gap between engineers & CFO's that can be bridged.

inSync offers a unique service.  Working closely with your CFO & engineers, we analyze your Cloud invoices & your current environment including server breakdown by role, virtual servers, licensing, software applications, backup retention policies & solutions, data that our engineers can provide detailed & technical, cost-effective alternatives to the Cloud.

Our engineers provide cost-effective alternatives to the Cloud.  Sometimes it makes sense to emulate your current environment, however a new approach can sometimes make more sense.  Depending upon the business, it can be an on-premise solution or hosted in a co-location facility.  But every solution provided will meet & exceed your expectations.

The potential to save over a million dollars in a five year period is realizable.
And our clients are always happy about those results.

We Migrate To, & From, the Cloud.  Let's Make Sure Cloud Computing is Right for Your Business.

Pros Versus Cons of the Cloud

  • Trade the cost of capital assets for a variable expense
    Pro:  Instead of having to invest heavily in data centers & servers & estimating the growth over 5+ years, Cloud computing pay as you go - only pay for computing resources & storage that are being used.

    Con:  For a recent client who was paying $32k/month, we provided a state-of-the-art cluster solution that paid for itself in less than one year of Cloud fees.  The Cost/Month at a Colo (with all the benefits of the Cloud)  $1,450 versus $32k/month resulting in:

    • Initial Investment including labor $283,049

    • Years 2-5
      Savings per month = $30,550
      Savings per year = $366,600
      Savings over 4 years = $1.466 million 

  • Benefit from massive economies of scale
    Pro:  By using cloud computing, you're benefiting from the usage of hundreds of thousands of customers aggregated in the cloud, providers such as AWS can achieve higher economies of scale, which translates into lower pay as-you-go prices.

    Con:  Just haven't seen economies of scale with the Cloud.  With a cluster solution, potential growth can be easily accommodated within the build of your cluster solution.  If your business has a growth spurt or purchases a business, a node can be added to the cluster. 

  • Increase speed & performance
    Pro:  In a cloud environment, the computing resources are shared & the specifications of your Cloud environment are not disclosed.  One of our new clients was spending $8k/month on a hosted server in the cloud.  The server was 8 years old - the useful life of a production server is five years.  

    Con:  In a purchased cluster solution, your state-of-the-art hardware will include the best hard drives & processors to maximize speed.  I has a useful life of 5 years but can be stretched by renewing the warranty & cluster management.

  • Stop spending money running & maintaining data centers
    Our clients are either in a co-location facility or an on-premise solution.  There is not a lot of money spent running & maintaining data centers.  In the co-location facility - it is a hardened facility to protect their environment during earthquakes, has redundant Internet & power generators, air conditioned, secure & clean.  Cloud:  $32k/month  Colo:  $1,450/month

    inSync recommends on-premise solutions if it is warranted.  Another client was spending $600k/year on the Cloud with mostly in-house employees.  With a $200k investment, that expense was eliminated.  A 6 year solution.

  • Disaster recovery solutions & business continuity
    With an on premise or colo facility, inSync takes advantage of the Cloud for remote backup & DR solutions.

Bridging the Knowledge Gap

Between Your CFO & Your Engineers

If you're in a similar situation, please call us.  We can help.


For more information on our CFO/Technology Services, please contact us!