Making the Business Case for the Cloud: The Pain of On-Premise

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Making the Business Case for the Cloud: The Pain of On-Premise

By James Millican, Product Marketing Manager
Gartner, a leading technology research and analyst firm, defines cloud as “a style of computing where scalable and elastic IT-related capabilities are provided as a service to external customers.”1 This means that the user can access the software from any Internet-enabled device; cloud systems are essentially websites for storing and processing data.

Cloud software is creating a compelling business case for organizations to replace their antiquated on-premise systems. Promising reduced infrastructure costs, faster implementations, and immediate upgrades, cloud is leading to the next generation of facilities management software. In the first post of our three-part series, we will go over the pain paints of on-premise systems.

Facilities Services On-Premise Software Pains

Lengthy, Difficult, and Neglected Upgrades
Facilities Services have the challenge of keeping up with patches and the effort of installing upgrades. Applying these updates can take a lot of time, from hours or several days for a minor patch, to weeks or months for a major upgrade.

Additionally, there can be uncertainty from the software vendor around when these patches are scheduled to arrive. When the patch does become available, the size and scope can also vary from release to release, which can result in further interference with other facilities projects.

And, even worse, a software patch typically won’t be applied when it arrives out of schedule and off scope. When patches are neglected, an organization will find that they are not only missing out on new features, functionality, and bug fixes, but that they are behind on critical security updates as well.

System Inaccessibility
Another pain for Facilities Services is system accessibility: when updates to on-premise products do occur, the system will often need to be brought down for maintenance. This means requests can’t come in, and facilities’ customers are left waiting in the lurch.on-premise_pains.jpg

On-premise software that requires installation on individual PCs can also leave customers at a loss when trying to locate a station with the correct setup, creating unnecessary overhead for the help desk from calls that could have been made online.

Low User Adoption
Most software companies have transitioned to a cloud or Software-as-a-Service delivery method, leaving those with on-premise solutions static with antiquated user interfaces and archaic design principles. For example, it is common to find navigation elements such as back, forward, and stop contained within the application, which is then embedded in the web browser. This design schema can result in confusion and frustration from users who are accustomed to navigating a standard web page, and ultimately, low user adoption and customer satisfaction.

Information Technology/Services On-Premise Software Pains

Extensive Infrastructure: Price does not equal cost
When considering all the components of an on-premise or client-server system, there are many additional, significant costs involved beyond the purchased application. An on-premise client pays far more for the ancillary technology – servers, hardware, middleware, third-party plugins, etc. – than the application license itself.

Additionally, there are ongoing infrastructure expenses to keep this technology running and refreshed:
• Mid-tier and application server licenses and support
• Virtual machine purchases
• Memory upgrades/extensions
• Energy consumption
• Physical server space allocation

Make the Move

Are these pain points all too familiar? The next step is to create a business case that is specific to your industry and organization. Click here to see what industries we serve.

Our team will walk you through an industry-specific questionnaire and provide you with your total cost of ownership for owning and maintain your on-premise system. Our team will provide a cost analysis for moving to the cloud and presentation deck to help you build your business case internally.

Call today to build your own business case for moving to the cloud! Please contact us at 800.774.7622 or to schedule a one-on-one consulting session.

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