Emil Sayegh

Jun 6, 2013

Get Out of the Closet!

I talk to so many Start-ups, as well as Small and Medium Businesses, that are still running servers in their closets. Really? Why would anyone need to run servers on-premise anymore and worse – in the server closet? Sound crazy? Well it really is!

A lot can go wrong in the closet

On Premise IT InfrastructureIt’s time to get the word out to everyone. Outsourced Hosting services – dedicated, managed, cloud or hybrid are much better options in every case for small, medium, and start-up businesses. For businesses that are running an on-premise “data center” (sometimes quite literally in a closet), look at all the things that go with owning and operating your infrastructure.  There’s a lot going on behind that closet door, a lot of work, a lot of costs, and a lot of worry. That infrastructure means you’re stuck in a 3-5 year refresh cycle, with little flexibility to upgrade, and you have to do all kinds of gyrations to keep the “show” running. You have multiple contracts to manage and negotiate. Which means several points of contact – that include things like your internet service provider, hardware and software vendors; all different for the variety of devices and software that go into running your operation. Costs can be inconsistent and hard to predict. This might lead to budget creep, leaving you with some pretty hard choices to make in order to keep your infrastructure up and running. All this while there is huge budget pressure on your limited IT budget as it is.

You’ve got to get so many things right just to keep your operation running. Add any kind of geo-redundancy, factor in cooling and electrical costs and physical access controls and you start to get the picture of not only the challenges that are built in to this operation, but the minimal value the business gets from it compared to the tremendous costs. Sure, you own it, but you also feed it, you run it, you rebuild it all the time, and you take all the risks.

Hosting is the Answer!

Take power for instance, very few companies still provide their own power. Most power is purchased from power companies, and the same applies to computing today! Industry-standard, Total Cost of Ownership (TCO) analysis tells us how these costs are typically spread out: Hosted services can quickly turn that scenario around.  You save time, space, money and most of all worry. That is priceless! You know how they say “time is money”?  Well, hosted solutions save time in so many ways.  For starters, just think of all the time that goes to set up your infrastructure, then into running that “closet operation” – in terms of support, maintenance, patching, design, upgrades, deployment, and backup operations. All of those operational costs, power, cooling, lights, physical access, power backup, they all become a thing of the past.  With a hosted infrastructure, you can spin infrastructure up quickly without all those issues and do it in a way that is custom to your needs, and you pay for what you use.

It doesn’t take long to see that as you start to add these things up; a hosting service is a much more affordable option and better value to the business at the same time. You get enterprise-level infrastructure, faster connection speeds and an infrastructure that can quickly scale as you need more resources. Better yet, you are free to focus on your business, your customers, and your staff while someone else is making sure your infrastructure is running around the clock. To top it all off,  no contractual obligations! Pay your monthly or hourly fee, and that is it!

The Punch Line:  Hosting is not only better and faster, but also more than 15x cheaper!

As I said before, time is money, but the cost is “real” money. In order to get a clearer picture, let’s consider an example of what it costs to run just one server using some industry-standard numbers:

On Premise IT Infrastructure vs Hosting Service Price Comparison

Now compare that to the total costs of running a similar infrastructure with a hosting service. You can’t!  As you can see, more than 15x less cost in a year is quite an advantage to hosting your infrastructure with a hosting services provider, as opposed to in your closet.  So you can save anywhere between 88% to 94% of you infrastructure costs if you choose to get out of the closet!  Well get out!  What are you waiting for?

At first you see in an on-premise scenario, physical servers initially present a minor cost, but when you factor in the operation, the maintenance, the TCO -that’s when it really hits in the pocketbook.

Remember:  That server requires a place to run it, power to operate, management, power to cool, physical and computing security measures, and last but not least, people to do all that. You just can’t match the value that hosting service provides; it eliminates your need to worry, your costs are more predictable, and you get an all around faster, cheaper, and better solution.

Whether you have a simple or complex environment, hosted solutions can be built to deliver a better value for your business in every case imaginable. Hosted services get you enterprise-grade reliability, performance, and 24×7 expert support; and none of the worries of doing it all yourself. It’s time to get out of that closet and step into the 21st century.

As always, let me know your thoughts, and if you have any questions by emailing me here.

About: Codero Hosting delivers a complete hosting portfolio with unparalleled support, featuring the best of cloud capabilities and dedicated hosting performance. Chat with us for more info. Emil Sayegh is the President and Chief Executive Officer (CEO) of Codero Hosting. Emil joined Codero in January 2012, after launching and pioneering successful Cloud Computing and hosting businesses for Hewlett-Packard, and Rackspace.

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  • Keith Hinton

    Hi, folks!
    I’m a self-tought tech geek who happens to be totally blind-but I’ve never let that stop me.
    In terms of Internet experiments, I actually didn’t run servers out of a closet– I did something worse!
    I used to … run servers off of desktop grade hardware, off a very crappy connection that was wirelessly sending data over the air via a large antenna on top of my dad’s roof, actually, frequently dealing with Arizona lightning storms blowing out the mmodem by striking the antenna, and to top it off, I was basicly using what amounted to mobile wireless broadband without the cellphone tower being necessary, using an ISP that apparently was “Wireless.”
    Oh the equipment had wires, but otherwise..forget it!
    Bandwidth bspeeds? Much slower htan Cable/DSL.
    SSH server terminals that I ran for my fellow blind friends and Linux geeks?
    Took five seconds before you would see visually, or hear your screenr eader (if you happen to be blind or visually impaired) read a character on the screen.
    That’s how long it took to get confirmation of any type that my SSH server was responding to anything from another Internet connection at the time!
    And when I wasn’t dealing with that, I was dealing with power outages, and all the other common things that you deal with including modem replacement!
    So folks, seriously! Please, get out of the closet, please?
    Take your servers to somebody such as Codero, or heck, just about any host out their that I know of will do.
    It’s time to start paying for services.
    Wanna run email in the home setup that I was referring to?
    Oh, you could, if you set SMTP to run off port 26, but hold on a sec..what about port 25!
    Oh, darn, it’s blocked upstream!
    So really.
    Closets are bad, for sure.
    But the setup I just described to you Codero Hosting staff, I think is even worse, but I thought I’d mention it because in my mind, especially back when I was learning how to run servers by doing exactly what I said above, that was my closet!
    One last little tech tip about me that I hope you staff get a huge laugh at, as I love to make people laugh when I can, guess what the first Internet connection type was that I had when I first tried running the Apache web server?
    I’ll give you a clue, it had something to do with 56-K modems.

  • Emil Sayegh

    Thanks for the great insights and tips Keith. We all have been there. Trying to do something ourselves, only to figure out two things:1. Someone can do it better. Nowadays the business world has become so competitive that any DIY (do it yourslef) will be sub-optimised in the long run as it is not taking advantage of the latest and greatest. 2. Whatever we are doing in DIY is distracting us from the way we add value to the world, and our primary business.

    Keith, finally thank you for the vote of confidence in Codero. Means a lot to us.

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