Your Legacy
To ensure good value, you need to regularly review your costs.
Sometimes your largest challenge is determining where to start...
Most organisations have a legacy investment in Information Technology that utilizes outmoded software and hardware, and usually contain components that typically are no longer supported by the respective vendors. Legacy systems persist because of the expense, effort and potential risk of business interruption associated with their upgrade. Sometimes these legacy systems, however creaky, are viewed as tried and true technology. The traditional mode of delivering Information Technology has had the business owner carry the risk and downside when technology fails and this needs to change.
To build a case for change can be challenging, especially when money is tight or there is limited understanding about the technology risks. Cloud is a new delivery model that allows you to shift this risk to your service provider, ensuring your business gets what it needs when it requires it.
The majority of businesses do not have a current view of what they are spending on IT.
We advise all our customers to begin with a review of what they are currently spending on their current legacy Information Technology. This can be challenging for some customers and Cloudland is often engaged to assist in determining this picture.
Your review needs to consider the full cost of your IT. The following summary of our reviews demonstrates what we have found after twelve reviews for small and enterprise businesses:
| Small Business | 12 employees, last 3years | Old World Best Case 3yrs | The New Way Worst Case 3yrs |
|---|---|---|---|
| Management Cost | Part-time management effort to do backups and manage issues | $30000 | $60000 |
| Cost of networking | Connectivity to the Internet | $6500 | $9000 |
| Application Licensing | Software upgrades to desktop, office, server, and security | $5000 | $10000 |
| Insurance | Contents insurance for your server | $2000 | $3000 |
| Power Consumption | Your server is a heavy consumer of electricity | $3000 | $4800 |
| Leasing | You may or may not lease your desktop, server, printers | $? | $? |
| Equipment Replacement | Replacing your Desktop(12), Printers(3), Network, Servers(1) | $23000 | $32000 |
| Printers & Photocopiers | Printers and Photocopiers are often leased | $10000 | $30000 |
| Adhoc Technical Support | Regular onsite maintenance of your equipment that is specific to maintaining your legacy | $30000 | $90000 |
| Staff Training | Training your staff to provide better levels of support | $500 | $2500 |
| Loss of Earning due to downtime | Time is money and having your systems down will cost your business | $5000 | $50000 |
| Use of money cost | Based on a 8% Bank Business Interest Rate | $5000 | $8700 |
| Total Cost Commitment | $120000 | $300000 |
| Enterprise | 65 Employees, last 3 years | Old World Best Case 3yrs | Old World Worst Case 3yrs |
|---|---|---|---|
| Management Cost | Part-time management effort to do backups and manage issues | $50000 | $150000 |
| Cost of networking | Connectivity to the Internet | $9000 | $15000 |
| Application Licensing | Software upgrades to desktop, office, server, and security | $35000 | $90000 |
| Insurance | Contents insurance for your server | $5000 | $7500 |
| Power Consumption | Your server is a heavy consumer of electricity | $5000 | $12500 |
| Leasing | You may or may not lease your desktop, server, printers | $65000 | $90000 |
| Equipment Replacement | Replacing your Desktop(12), Printers(3), Network, Servers(1) | $60000 | $120000 |
| Printers & Photocopiers | Printers and Photocopiers are often leased | $20000 | $100000 |
| Adhoc Technical Support | Regular onsite maintenance of your equipment that is specific to maintaining your legacy | $90000 | $310000 |
| Staff Training | Staff Training | $5000 | $20000 |
| Loss of Earning due to downtime | Time is money and having your systems down will cost your business | $60000 | $250000 |
| Use of money cost | Based on a 8% Bank Business Interest Rate | $16000 | $35000 |
| Total Cost Commitment | $420000 | $1200000 |
