The Cost Benefits of In-House Infrastructure

Setting up your own server room can be a significant investment in terms of money, time and deployment of human resources. So with this in mind, many organisations decide to outsource this service, in order to enable a business to focus on core competencies. However, when based on individual circumstances this can often be a misguided approach which overlooks some of the major advantages and cost benefits of keeping infrastructure in-house.

One of the biggest problems with utilising an external provider is that the level of service agreements provided externally can often vary wildly. It is typical for a company’s network routers and switches, security mechanism, desktops and peripherals, disk storage and bandwidth to be subject to differing service level agreements, and this can massively impact upon a business’ competitiveness.

In some instances, when a business calculates all the costs of internal facilities as compared to the annual cost of external hosting, the former can often turn out to be more affordable than the latter. Ultimately, external hosting companies have to make a profit, and they can often offer their services at something of an expensive price point. This can be particularly true for SMEs, who are far less likely to benefit from the reduced rates which are usually directed at major corporate clients. In this case an MSP like Technetics can show real value by leveraging of their industry relationships to negotiate an affordable price for the client.

Security can also play a factor. Although there are many reputable external providers of data centre architecture, if it’s cost-effective it’s often safer to keep information in-house. Having key data stored in off-site locations is never good for peace of mind, and whatever stringent protections are put in place there can be issues which emanate from this arrangement.
Additionally, there can be continuity issues with external hosting. While many external providers of infrastructure make promises about access to information, in reality this can often encompass delays. This is particularly true with shared infrastructure, and this obviously does not apply to in-house systems.

There is no one size fit all formula for hosting of a companies data. Every business should have a solution with encompasses the cost-benefit, collaboration and continuity requirements of their individual business. For a better idea of what to do with your infrastructure, give us a call on 1300 853 453 or submit an enquiry at www.technetics.com.au/cloud-readiness-audit.

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