Essential Technology: A GCS Blog

A Blog About Business Technology Systems

About GCS

GCS Technologies provides technology services and solutions. You can read more about GCS at http://www.gcsaustin.com. GCS is available for project work covering the topics in this blog and other IT systems.

Fed Compliance

I know all of this stuff because I sell all of this stuff. I call it real-world experience, the FCC thinks it might be a conflict-of-interest.

Brass Tacks - Compare the Cost of On-Premise vs Cloud

by Joe Gleinser 7. September 2009 21:50

When should I recommend Cloud solutions to my clients? I don't know. Today I'm going to start figuring it out. I'm going to compare an on-premise build with a cloud based solution for a hypothetical 50 employee organization. Allow me to skip a lot of details and say it will provide roughly equivalent features and security. Anything required in both solutions was a wash and therefore ignored. What you're left with is mostly a lot hardware (servers, SANs, firewalls, switches for iSCSI, etc), deployment services and hardware-level support.

NOTE: All pricing is retail and rounded. Individual proposals may vary. A greenfield is assumed - no data migration. Everything that was common to both solutions was excluded so this may represent a small portion of the overall project. 

Cloud Offering:

In the cloud we'll procure 20Ghz of processor capacity, 50GB RAM, 3 TBs storage with 10 Mbps of bandwidth to host 15-18 Virtual Machines. Onsite backup for 1.5 TBs. This will run about $10,000 per month.

On-Premise Offering:

On-premise will provide provide about 60Ghz (over 24 cores), 96GB RAM, 3TB direct attached storage for backup, 3TB iSCSI SAN. We'll plan on hosting 25-30 VMs on this platform. You'll get this for about $160,000 including 200 hours for installation and configuration. See my build here. Note we dropped 25% of capacity for high-availability.

To even the playing field we have to factor in datacenter costs for the On-Premise Offering. I see a rack, 10Mbps of bandwidth, and 40A of power. Say $3000 per month?

Conclusion:

Let's compare 3 years of costs. In the cloud you're out $360,000. At home, including the data center costs, you're looking at $268,000. The $92,000 delta has to cover the hardware support and maintenance for 3 years. There is some difference in capacity and reliability. I hope it helps your evaluation to say that the cloud offering, in this case, is 35% more expensive.

 

Network Map for Cost Analysis

Click image for single page PDF

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList

Tech Advice for Startups

by Joe Gleinser 27. July 2009 22:33

Today launches a series of posts targeted at new businesses including boot-strappers and those with more financial resources. I'll review the many technology tasks required to launch your new business from selecting an accounting system to building out your first office. I'll talk about options you have at each stage and when it's appropriate to consider the more expensive options.

Password List: Before you do anything else download and use PasswordSafe. Many of the tasks below require you to setup new accounts. Most businesses lose this account information in the first months of operations and waste hours of time later proving they should have access to the accounts.

Domain: Acquiring a good domain name is a challenge as most of the prime domain names are no longer available. Find a detailed discussion about choosing a domain name here. A low cost provider, such as GoDaddy, offers the same product with a fine level of service. Do make sure that if someone is buying the domain for you it is registered in your name. Use an email address that you WILL ALWAYS have access to. This is a common frustration for young companies.

Email: Most companies begin life with a low cost form of email known as POP3 or rely strictly on a web-based provider. Hosted Exchange and Google Mail offer far superior options to regular POP3 email with relatively similar costs. Hosted Exchange is available from many vendors. You'll get better mobile device support, improved email/calendar/contact sharing and reliable data backup.

Telephones: Who needs a phone anymore? You will. Relying on cell phones becomes an extremely expensive proposition. While undoubtedly the tool of choice early on you will need phones on desks before too long. Hosted Voice over IP solutions have highly variable call quality, advanced feature sets and high recurring monthly costs. An in-office phone system is the choice of most businesses once they reach five or seven employees. Modern systems, such as the Avaya IP Office, offer advanced integration to mobile devices, telecommuters and remote employees. Advanced functional needs such as call center, call recording or specialized auto attendants may demand a phone system before staff capacity does.

Website: For a few thousand dollars you'll get a basic marketing page advertising your business. This should include several unique pages, a custom design and some ability for you to change site content without calling the design company. Expect to have to generate the text yourself.

Website Hosting: This will probably be provided by your design company. Expect to pay $15 - $30 per month for basic level hosting. Advanced sites featuring high traffic volume,
e-commerce or custom development may have hosting costs of a few to several hundred dollars.

DNS Hosting: DNS hosting is rarely mentioned by hosting companies other than they'll provide it. Many hosting companies, ISPs and technology service providers have low quality DNS systems. If DNS fails it will affect your email, website, remote access and more.

 

Digg It!DZone It!StumbleUponTechnoratiRedditDel.icio.usNewsVineFurlBlinkList

Powered by BlogEngine.NET 1.5.0.7
Theme by Mads Kristensen