Jul 16, 2014

To Manage or Not to Manage? That Is the $1 Million Question

It’s time for IT professionals to come to grips with the fact that managing your own servers comes at too high a price. Once you add up costs such as server maintenance, data security, physical security, downtime prevention and backup, it’s far more expensive than what you’d expect. And if you think that’s bad, don’t forget to factor in the most expensive part: Distraction from your core mission of growing your company and business. Every minute spent on managing your IT is taking time away from growing your company and business.

Managed hosting was born as answer to these very costs while delivering other operational business benefits.  At the very heart of modern IT infrastructures is the need to scale with business at the speed of business, by the most efficient means possible.  That means businesses need a solid platform that’s always up to date, worry-free, and supported 24×7.

Reduce RiskTo ensure you have that kind of infrastructure when running you own servers, your business has to manage around-the-clock staffing (and the associated training), network costs, equipment costs, multiple contracts and so on. But what will it really cost you in the run? And how can you tell if managed service would be a better solution?


The Three Questions – Here are three questions you should ask to determine whether you’re paying the real cost of managing your own servers.


1. What does your peace of mind cost?

Peace of MindThis “peace of mind” cost is very subjective, and we won’t try to quantify it, because it’s all about your business. But we do know that most websites and business applications are the mission-critical core of businesses.  That means IT systems need to be well-maintained, with available expert technical support, and regular maintenance.

When you run your own systems, it takes time away from running your business, starting new ventures, enjoying your vacations, spending time with loved ones, etc. There’s no such thing as a sick day or a week off. Even if you’re on vacation, your systems won’t be. And what if something goes wrong while you’re away? If you’re at an event receiving a big award for your business and servers go down, what happens then? Do you forego the ceremony and run to get your systems back up?  There are so many start-ups we meet that try to do IT themselves, and most of them have had the unfortunate experience of their infrastructure going down while they’re doing a demo to key investors.  How do you put a price on that?


2. Are you aware of the real financial burden?

This is a much easier point to prove. You know running your own server systems costs money. But are you really aware of how much? Here we look at a very simple example that illustrates how the costs truly add up if you want to do it right and not cut corners.  The table below clearly shows  how much a business can save by switching to Managed Hosting.

Item DIY upfront costs Managed Hosting
Firewall $2,500 included
Web Server $2,500  $139.40/mo – $1672.80 per year
Backup Server $2,500  Included
Backup, disaster recovery $2,000  Included
Switch $1,000  Included
Cabinet $1,000  Included
Implementation, consulting $1,500  $1,500
Space, power, bandwidth $1,500  Included
24×7 IT support/employees $150,000  Included
Total $164,500 first year  $3,472per year

Even if you were to take away the things that you already paid for (ex: Server, Firewall, etc), you can see how you still need a couple of employees around the clock, you still have additional bandwidth costs, other gear to manage like firewalls, switches and so on, at the very least.

If you have an IT staff, their time can be better utilized with functions other than managing servers. You can make the most of your talented assets and unchain them from the tasks of server management.  Critical server issues are better left to the expert knowledge available through managed services personnel who solve these types of issues daily, and around the clock.  Issues can be resolved quicker by putting your IT staff onto other more core tasks while companies like Codero take care of managing your IT infrastructure.  Time is money and running your own servers costs both time and money.  In the event you scale up your infrastructure, you must still scale resources for proper management-which means again, more money!

3. Do you want proactive, technical expertise on your side 24×7?

Extend Your TeamIf you value 24×7 expertise on your side when running your own systems, you’ll have to search for, hire, train and pay each one of those experts yourself.  Then you have to manage them and retain them! No small feat in today’s high employee turnover rate world. With managed services it’s all done for you, so you’ll procure better value in every case.

Secondly, support needs to be proactive, and not reactive. This means it needs to be ahead of your needs, through communication, through great technology and through expert dedication to making sure your systems are the best they can be and that you are getting everything you expect from them by proactively anticipating issues, and solving them BEFORE they occur.


While the advantages of using managed services still apply to any provider you select, Codero’s managed services proudly lead the pack and have taken managed services to a new level.   We go further than anyone else in providing real value to our customers with outstanding personalized and named account managers, and a tech support team dedicated to you.  We pride ourselves on acting proactively, and named our Managed Services as such.   If you’re looking to learn more about Codero’s Proactive Managed Hosting services, visit our Managed Service page or chat with one of our hosting experts.

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