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Aug 29, 2017

Why Hosted Or Managed Security Solutions Make Good Business Sense Reason #2

Reason #2: Eliminate Costly Infrastructure

Our last post discussed efficacies of moving to a hosted or managed security solution, that helped lower the costs and risks associated with having an in-house IT team managing your security. There are more great reasons to make the move, and one removes large infrastructure bills from your plate.

 

Today’s companies need to invest in servers, PCs, software and OS updates regularly to keep up with the changing technology. From semi-annually to every few years, each update adds significant costs to a bottom line. The cost of a server alone can be tens of thousands of dollars. On top of having an IT staff to maintain the equipment and other incidentals, like the utility costs. As more businesses move to a rental model to handle certain business functions, outsourcing costly infrastructure makes good business sense too.

 

A closer look at costs

With an on-premise server solution, you’ll incur direct costs like hardware, storage, electricity, HVAC, security and cleaning costs. These costs are required to keep them running optimally. Indirect costs include salaries of the IT professionals that manage the system, as well as any loss of revenue from downtime.

 

Downtime can be especially costly. With a 99.9% availability from most service providers, that equates to about 44 minutes of downtime per month. This can wreak havoc on a budget. A 2015 IHS report put it this way:  for mid-sized North American companies, downtime costs can be as high as $1 million per year in lost revenue. Mid-size companies are defined as having $100 million in average revenue and between 100-1,000 employees. Large-sized companies average in $2 billion in revenue with 13,000 employees. They can have $60 million a year in lost revenue (Source:  Networkingcomputing.com).

 

In an example described by Forbes.com, a retail e-commerce company had a total savings of 37% by moving from an on-premise server to a managed cloud-based system (Source:  Forbes.com). In addition to saving on expensive infrastructure, companies also gain the expertise of the hosting or managed services provider, which has a high cost as well.

 

Join us for our next post, where we’ll look how managed security solutions eliminate the dreaded knowledge gap. For the full story on making the business case to move to a hosted or managed solution, click here.