Traditional deployment models have always been expensive. It requires a data center with office space, power, cooling, bandwidth, networks, servers, and storage. In addition a complicated software stack and a team of experts to install, configure, and run them are required. They need development, testing, staging, production, and other suitable environments.
Combining costs associated with the above mentioned factors, it is quite difficult to break even at the first place in addition to finding systems to manage and maintain the set up. Hence companies, both big and small, are opting hosted model implementations. There are many advantages which is offered by hosted model over the traditional deployment model.
Few of the benefits of the Hosted Model are:
- The Hosted model shifts the burden of getting and keeping an enterprise application up and running from the customer to the vendor.
- It can be implemented rapidly, and eliminates the infrastructure and enduring costs, which traditional deployment models require.
- It permits users to leverage the software functionalities, without the burden of deploying and managing the software themselves.
- It also eliminates the costs and complexities of deploying additional hardware and system software, and dedicating additional staff resources to support the enterprise application on an ongoing basis.
The Hosted model also enables every customer to benefit from the vendor’s latest technological features, without the disruptions and costs associated with software updates and upgrades.
Hosted Model vs. On Premise Model: Compare Business Benefits:
|Category||Hosted Model||On-premise Model|
|Hardware Infrastructure||No Investments||Direct & Indirect Investments|
|No Capital Expenditure||High Capital Expenditure|
|Operational Expenditure||Minimal & Predictable||Unpredictable|
|Hardware Availability||99.9%||Depends on your resources|
|Implementation time-frame||Shorter Implementation time-frame||Longer Implementation time-frame|
Hosted Model: A better way:
It is a better way to run your business on a hosted model. Instead of running your applications yourself, they run on a hosted platform managed by a specialized vendor. When you use any application that runs on this platform, you just log in and start using it. That’s the power of hosting.
Businesses are running all kinds of applications on the hosted platform these days. They cost less, because you don’t need to pay for all the people, products, and facilities to run them. And, it turns out they’re more scalable, more secure, and more reliable than on your own premise. Plus, upgrades are taken care of for you, so your applications get security and performance enhancements and new features automatically.
Forget about buying servers and system software. When your applications run on the hosted platform, you don’t buy anything. It’s all rolled up into a predictable annuity subscription.
Finally, hosted applications don’t eat up your valuable IT resources, so your CFO will love it. This lets you focus on your core business and innovation.
The bottom line: Hosted model is a simple idea and it will have a huge impact on your business.