6 Ways Cloud Computing Cuts Cost

1) Pay For What You Need -- Not An Over-Sized Server

As a small-to-medium sized user, you may have determined you only need about 1000-2000 CPW to support your legacy applications. You have probably discovered IBM does not offer servers as “small” as this…instead they make 4 – 12 core servers…each core is 9900+ CPW…with way more memory and storage than you can ever imagine.

You only need a fraction of a new POWER server to run your RPG programs.

With IBM i/OS400 cloud hosting you only rent what you need and only as you need it instead of buying an over-sized on premise server.

It’s like renting a 5,000 square foot office instead of buying a 100,000 square foot building

Can IBM i/OS400 cloud hosting also benefit large IBM i users?

You may think, “What a minute, Bob. My needs are much larger that 1000-2000 CPW. What about my needs?”

I would tell you that even our largest clients, who need multiple cores, multiple LPARs and 10+ TB storage, still find cloud hosting less expensive than a new server.

How come?

When our larger clients consider a new server, they configure it for peak load over a period of 5-10 years.

With cloud hosting, they only pay for what they need. If they need more for on a short-term basis, we can immediately dial up the resources they need. Then return to their regular workload requirements. This offers more flexibility at a lower cost than an on-premise server..

2) Term Flexibility – Operational Budget Instead Of Capital Budget

Cloud hosting offers flexible terms compared to either a capital expenditure or lease. Rather than being locked into long-term lease or depreciation schedule, you can have flexible terms to fit your needs.

Clients move to cloud hosting for:

1. Test and development,
2. IBM i/OS400 version upgrades,
3. Application version upgrades
4. Application sunset as they move to a new platform, as well as longer-term options to support their production workload.

Big picture, I generally see clients move to cloud hosting for flexibility in addition to lower their IT spend.

3) No Extra Fees For User Count, Core Activation, SWMA, HWMA, Services Extension

Current IBM i on POWER servers have several extra fees in addition to the hardware cost. These fees include:

1. Core activation
2. User-based fees
3. Hardware and software maintenance fees, and in some cases,
4. Service Extension Fees for legacy software support.

These extra fees can really add up. I generally see a range from $15,000 to $80,000 for a single core POWER server.

Cloud hosting can offer you the IBM i resources (processor speed, memory and disk storage) without theses extra fees. By not billing for these extra, cloud hosting can really cut your Total Cost of Ownership (TCO) compared to an on-premise server.

4) Daily Backups Included – Save Labor And Offsite Tape Storage Fees.

Cloud hosting includes your daily backup – so you don’t have to spend your time and money on this activity. It also includes moving backup copies safely offsite – so you don’t have to take your backups offsite (i.e. take them home or leave in your car) or pay for offsite tape service.

If you have an offsite tape server, this can easily save $2,000 to $4,000+ per year.

5) IBM i/OS400 Expert Management

Many clients who move to cloud hosting tell us they do so because they have little or no in-house IBM i/OS400 skills. They prefer to delegate expert server management so they can focus on other aspects of their corporate technology.

These clients have told us IBM i/OS400 expert support saves them $6,000 - $12,000+ per year.

6) Disaster Resilience, Security And Redundancy (Power, Cooling, Web Access, Bandwidth, Etc.)

Cloud hosting includes IBM POWER servers in a data center generally with superior safety, security and redundancy (power, cooling, web access) than clients can afford to spend on their own facilities.

With cloud hosting you pay for a fraction of the data center as well as a fraction of the server. In return, you critical data operates in an environment designed to withstand disasters and unexpected downtime.