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Managed Hosting The Four Sources of Potential Cost Savings

Managed Hosting • Have significant potential for cost savings • Industry analyst Gartner compiled a list of four areas they recommend customers explore internally • Analyzing categories will give business an idea where their cost benefits originate, as well as measuring the sources of savings and how they’ll be achieved

Managed Hosting First Source of Savings: Efficiency • Companies need to understand what savings will result from increase operational efficiency – Impact of managed hosting on labor – Impact of managed hosting on location

Managed Hosting Second Source of Savings: Effectiveness • Companies should evaluate managed hosting’s effectiveness. Organization effectiveness include: – Improving productivity through effective processes, standardization, consolidation and/or economies of scale – Increasing speed with which processes are completed

Managed Hosting Second Source of Savings: Effectiveness – Working smarter is prime source of cost savings. If companies reduce volume transactions through redesigning, standardizing, consolidating or reconfiguring processes, they’ll save money

Managed Hosting Third Source of Savings: Information Flow • How information flows within organization affects facets of operations. Using managed hosting services gives potential to improve flow of information. Better information flow can deliver cost savings resulting from the following: – Enhance Decision-Making – organizations that have right information at right time, make better decisions and improve outcome of implemented strategies

Managed Hosting Third Source of Savings: Information Flow – Greater Adaptability – better information flow and availability positions companies to adapt more quickly to change

Managed Hosting Fourth Source of Savings: Variables • Businesses should have managed hosting service provider explain how the source of savings: efficiency, effectiveness and information flow, will vary over time • Questions should be: – What are the total savings a company can expect each year when using managed hosting? – How will sources of savings change each year? – Why will these changes take place?

Managed Hosting • Companies that know where there cost savings originate enable them to plan better and leverage improve performance to grow their business • They can prepare for any dips in performance based on internal and external forces • Before entering into managed hosting, companies need to look within organization and service provider for potential cost savings estimates

About the Author

• Chuck Vermillion is CEO and founder of OneNeck IT Services, a leading provider of hosted application management and managed services since 1997. For more information about Managed Hosting, visit today.

Managed Hosting: The Four Sources of Potential Cost Savings