We met with a client last week whose challenge is to put to good use an IT system that was bought and paid for during a time when his business was surging, and he had the manpower to justify a major investment in his IT infrastructure.
Now on the heels of a major restructuring effort to right size his company in a tough economy and a tough industry, he finds that his system is overbuilt and won’t scale in the opposite direction that would keep it cost effective for him.
Then this weekend I read an article from the front page of the Phoenix Business Journal regarding a Tower of Condos in downtown Phoenix that is now just 5 percent occupied.
Built-out infrastructures designed to meet a peak demand that is no longer coming or at least won’t be present for quite some time. They don’t scale in the opposite direction. Sunk cost is sunk cost.
With the arrival of the Cloud there is some good news for businesses with respect to their IT costs. Those businesses that have been operating on platforms like NetSuite have over the past year, been able to easily right size their costs by simply lowering the number of licenses that they have in use at this particular point in time.
With Cloud-Based, pay-as-you-go, subscription licensing, the challenge of an overbuilt IT infrastructure is a thing of the past
For those businesses who find themselves faced with an overbuilt IT infrastructure, give us a call at TrueCloud. We’ve got some solutions that can help ease the pain right now.
Dave Rice CEO, TrueCloud
www.truecloud.com
Monday, August 24, 2009
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