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Making “Cents”
of the Application
Hosting Equation:
A Buyer’s Checklist
Determining where and how to host your IT systems is
largely a strategic business decision, even more so than
an IT decision. It’s one that can have a large impact
on your business, in regards to system performance,
security and cost. Having a clear understanding of the
true costs of it all to not only weigh all of your options,
but to build a comprehensive cloud and IT outsourcing
strategy is essential.
This white paper will provide insights into potential cost
savings broken down by capital investment, monthly costs,
facility expenses, maintenance costs and resource overhead.
You’ll also get an unbiased look into the average costs from
surveyed hosting clients from multiple industries. At the
conclusion, you should have a better gauge of what your
company can really save, what parameters you need to set
for your business and your future IT partner before you make
the leap from an in-house data center to a hosting and/or
cloud service.
1A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation
2A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation
ask for?
What does the average data center
add up to?
You may have heard moving to the cloud delivers a
compelling ROI. You are promised greater IT operational
performance with reduced stress on your internal resources.
But how do you know that’s all “true” without the calculated
hard numbers? How do you determine what the best
business decision is to internally host vs. outsource your
data center operations? And how do you know what IT
partner can bring the most to your operations with the least
number of headaches?
Reasoning Before Resolution
No doubt, your company has debated whether to
outsource your internal data center to a reliable
hosting and cloud partner. But if you’re a small
to medium-sized business, you have a variety of
questions to consider:
– How do you get started?
– What should you expect from a third-party IT
hosting partner?
– What engagement is expected from your own internal
resources and how many hours are truly returned to
your IT staff?
Most of all, you’re probably wondering if economies of
scale really contribute to your total cost savings. While
you’re not alone in questioning what the costs are, many
other companies are becoming more reliant on partner
hosted solutions as a way to drive down costs, according
to a survey conducted by CNBC, “More than eight in ten
companies currently use some form of cloud solution, and
more than half plan to increase cloud investments by ten
percent or more.”
“More than eight in ten companies
currently use some form of cloud solution,
and more than half plan to increase cloud
investments by ten percent or more.”
3A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation
ask for?
The Decision Point
Of course, just because other companies are making the
switch, doesn’t mean your company should, too. There’s no
sense in keeping up with the Joneses just to keep up, yet fall
behind in your budget. However, the outlay for upkeep and
dwindling morale can end up costing your business much
more, even with the upfront investment in a hosting and
cloud partner. As the cloud world expands to the masses,
the economies of scale truly make outsourcing your data
center a more favorable, cost-effective option.
The Costs of Hosting Internally: Breaking Down
the Dollars
Every business must invest in its operations. However,
when you host internally, your business is investing
in pricey hardware and equipment that is certain to
depreciate or become obsolete before your budget has
even bounced back. Even if you have already begun
implementing a lofty data center or are in the process
of updating, there are several incurred costs still left to
consider, beyond the upfront investment:
– Monthly Expenses
– Ongoing Facility Costs (electricity, expert heating
and cooling)
– 3rd party maintenance contractors to
maintain space
– Resources (Training and FTE per Growth)
– Maintenance, Backup / DR and Updating Equipment
– Network Costs (complex networking to maintain
and grow)
– Licensing
Up to 36% cost savings when opting for
a hosted or cloud solution
After calculating the average costs per an insourced data
center vs. a partner hosted/cloud solution the total cost
savings over three years is 27%, with an impressive 36%
cost savings when compared to a cloud solution.
These statistics are based off of findings from the average
small- to medium-sized client, industry standards and
Symmetry’s data center investments.
“Fifty percent of respondents [from
the CNBC survey] say they are
moving to the cloud because of a
desire to cut costs.”
“But the cloud is also attractive because IT management
feels it’s a better option (44 percent), it will reduce capital
expenditures (43 percent) and provide a relatively painless
path to modernization of legacy IT systems (42 percent).”
50%
Feel the cloud is a
better option
Feel it will reduce
capital expenditures
Feel it will provide a
path to modernization
44% 43% 42%
4A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation
ask for?
To weigh your options and estimate your own possible cost savings via a cloud or hosting model costs be sure to consider
the following basic must haves:
Calculate Your Hosting Costs:
– Servers
– Disk
– Backup Library
– Backup Tapes
– Rack
– Network Gear
– Raised Floor & Communication Buckets
(1500 sq. ft)
– Electrical Whip with Parts and Labor
– Software Costs – Operating Costs
– Facilities (computer room)
– Computer Room Cleaning
– Floor space (1500 sq. ft)
– Power Electric
– Panel Maintenance
– Monthly Consumptions (5kW per month)
– Annual Inspection (breaker/bus bar tightening)
– Power UPS
– Battery Maintenance & Testing
– System Maintenance
– Battery Replacement (3-5 years)
– UPS Specific Cooling
– Power Generator
– Semi-Annual Maintenance with Load Test &
Generator Battery
– Monthly Transfer Switch & Generator Test
– Fuel
– Cooling
– CRAC Maintenance
Equipment Setup and Deployment
MPLS Provisioning (10mbps allocation)
– Facility Manager
– Equipment Manager
– Systems Manager
Capital Investments
Setup Costs
Network Cost
Monthly Labor
Monthly Costs / Facilities / Services
(included with hosting and cloud solutions)
5A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation
The Benefits of Hosted &
Cloud Solutions
Services Count as Much as Technology
Hosted and cloud solutions are meant to be easy. They offer
more capabilities for your business – faster, more powerful
computing, seamless functionality, enhanced security
and easy scalability. So why task your IT resources with
troubleshooting and maintenance responsibilities instead of
strategic, growth initiatives?
Most IT environments are complex. Every element of
the cloud needs to be architected specifically for the
applications, and done so by a certified expert team. A
reliable IT partner can lend instrumental guidance and
complete technical support, from the initial migration to
ongoing system management.
Don’t feel rushed into choosing a hosting partner either.
Even if you decide that now is the time, making any
decisions too quickly could result in a deficient outsourcing
relationship. Before you make the leap, outline the explicit
goals your operations would like to achieve, whether it’s the
dollar amount saved, reallocating your internal resources
or achieving a more secure, seamless environment. Shop
around. There are many solution options, pricing plans and
partners to choose from.
Profit from More Productivity
Your IT resources were intended to add value to your
operations – to save business dollars and streamline
processes through strategic, technical innovation. And while
that is the intention, most IT departments spend the majority
of activity maintaining their current system, instead of critical
process-enhancing projects.
According to CIO Journal, “IT spending accounts for about
3.5 percent of enterprise revenue, on average, but that
spending produces a majority of enterprise productivity
gains. In other words, effective IT is key to increasing
enterprise effectiveness—and according to our research, IT
effectiveness is lower in enterprises where strategy is unclear
or inconsistently executed.”**
The article continues to iterate that the “absence of strategy
implies significant waste.” Based on findings, “the typical
enterprise succeeds in about 60 percent of its IT- supported
initiatives. Take the total IT spend and multiple by 35 percent,
the average percentage of IT spending that’s devoted to
change initiatives. Now take 40 percent of that figure. That’s
how much waste is involved for IT alone.
* http://www.cnbc.com/id/48319526/Why_More_Businesses_Are_Using_Cloud_Computing (Jul. 2012)
** http://blogs.wsj.com/cio/2013/01/24/does-strategy-matter-ask it/?mod=wsjcio_hps_cioreport (Jan. 2013)
“In a typical enterprise that spends $100 million per
year on IT, $14 million is wasted.”
X 40% =
$100M $14M
IT Spend 35% Change Inititive Waste
6A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation
ask for?
Questions to Ask Your Prospective Hosting Partner:
Does your firm support ongoing
certified training and internal
knowledge sharing?
Do you offer flexible pricing and
customized hosting plans?
Do you have client references I can
speak to about their experience?
What backup/disaster recovery plans
do you offer?
When are your contact hours?
Will I be able to speak with a real expert
or will it be a middle man?
Are you certified in the most common
enterprise applications?
What are your core competencies?
How long have you been providing
hosting and cloud services?
1
2
3
4
5
6
7
8
9
7A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation
ask for?
The Symmetry Difference
Flexibility isn’t a notion for Symmetry; it’s a definitive practice
of delivery. After all, no two operations models are created
equal. All customers receive 24x7 coverage from Symmetry’s
certified IT experts, with a premier data center network
spanning the globe. You choose the hosting option that best
meets your business operations, compliance requirements
and budget.
Any cloud vendor can eliminate the financial burden of
owning, maintaining and updating hardware and equipment.
But as a trusted IT partner, Symmetry takes it one step
further by ensuring we are always delivering the best
technology, quality and value to our customers. Through
research, client-led development and industry best practices,
we continually build upon our multiple state-of-the-art data
center facilities. Above all, we believe in giving our customers
the flexibility and autonomy they desire with the expert,
dedicated support they need.
All of our certified experts follow a client-centric approach.
No landscape or set-up requirement is outside our realm
of capabilities. Our wide-ranging IT talent is versed across
the entire infrastructure architecture. Each specialist stays
abreast of the latest industry innovations, through internal
cross-training, and partner certification programs. Symmetry
recognizes and truly understands your unique operational
challenges, in order to tailor a solution that will bring the best
value to your business.
Symmetry has the security, quality and affordability built
into our hosting solutions and data center services,
specifically designed to reinforce confidence for our
customers. Symmetry has combined the certified
expertise in hosting architecture with an all-inclusive
integrated data center approach through hosting and
managing all enterprise applications, through a certified
solution that ensures secure, stable, fully redundant,
8A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation
and optimally-performing environments. Symmetry’s
hybrid data center solutions are road-mapped, built, and
supported by industry leading network, infrastructure,
security, and application engineer teams.
Symmetry customers can take advantage of the
improved security and performance available through a
dedicated hardware infrastructure. Rather than locking
you into a hardware or cloud choice, Symmetry’s cloud
services provides the freedom to choose the platform
and cloud solution that delivers the best performance,
lowest total cost of ownership, while being scalable to
grow with your business.
Symmetry’s hosting customers can consolidate equipment,
scale out without delay and eliminate extra expenditures.
Above all, our hosting solutions promise more reliable
protection and stability through the multiple layers of security,
redundancy, and 24x7 monitoring on-site at the data center
and throughout our application management.
Not sure what solution is right for your business? Leverage
Symmetry’s years of experience and deep technical insight
to help arrive at your decision. By following the best practice
of delivering honest, strategic guidance, Symmetry’s
expert team, works side by side with you to assess your
business requirements to ensure the tailored cloud solution
is meeting all your business goals. Symmetry then devises
a comprehensive cloud infrastructure plan and ongoing
cloud strategy that includes hosting of all of your mission-
critical and third-party applications. As a true extension of
your team, we take the confusion out of the cloud equation
- Symmetry handles all of the complexities of the cloud;
networking, security, redundancy daily management, system
optimization and performance.
A certified cloud and hosting provider, Symmetry is the
leader in IT managed services by integrating end-to-end
hosting solution options with the agility and security of our
world- class data center network. The difference is a single-
source support team backed by enterprise-grade data
centers. The result: peace of mind for you from a seamless,
comprehensive delivery model.
About Symmetry:
Get Started Today:
www.SymmetryCorp.com 888-796-2677 | Salesinfo@symmetrycorp.com
*SAP is the trademark of SAP AG in Germany and in several other countries. IBM is the trademark of International Business Machines Corporation, registered in
many jurisdictions worldwide. All other products mentioned in this document are registered trademarks of their respective companies.
Symmetry™ is a leading applications management and hybrid cloud hosting solution provider with deep expertise in SAP application management. As a true
extension of your IT team, we place a laser focus on our customer’s experience and offer highly flexible, tailored solutions to meet the unique business needs
of enterprise clients.
Since 1996, Symmetry has been providing the highest quality cloud, hosting and IT managed services. Our highly trained and certified experts are ready to
meet your IT needs with the best, most flexible service available. Our customers have the peace of mind that comes from knowing everything will be taken
care of — and taken care of right.

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Managed Hosting Buyer’s Checklist | Symmetry

  • 1. Making “Cents” of the Application Hosting Equation: A Buyer’s Checklist Determining where and how to host your IT systems is largely a strategic business decision, even more so than an IT decision. It’s one that can have a large impact on your business, in regards to system performance, security and cost. Having a clear understanding of the true costs of it all to not only weigh all of your options, but to build a comprehensive cloud and IT outsourcing strategy is essential. This white paper will provide insights into potential cost savings broken down by capital investment, monthly costs, facility expenses, maintenance costs and resource overhead. You’ll also get an unbiased look into the average costs from surveyed hosting clients from multiple industries. At the conclusion, you should have a better gauge of what your company can really save, what parameters you need to set for your business and your future IT partner before you make the leap from an in-house data center to a hosting and/or cloud service. 1A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation
  • 2. 2A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation ask for? What does the average data center add up to? You may have heard moving to the cloud delivers a compelling ROI. You are promised greater IT operational performance with reduced stress on your internal resources. But how do you know that’s all “true” without the calculated hard numbers? How do you determine what the best business decision is to internally host vs. outsource your data center operations? And how do you know what IT partner can bring the most to your operations with the least number of headaches? Reasoning Before Resolution No doubt, your company has debated whether to outsource your internal data center to a reliable hosting and cloud partner. But if you’re a small to medium-sized business, you have a variety of questions to consider: – How do you get started? – What should you expect from a third-party IT hosting partner? – What engagement is expected from your own internal resources and how many hours are truly returned to your IT staff? Most of all, you’re probably wondering if economies of scale really contribute to your total cost savings. While you’re not alone in questioning what the costs are, many other companies are becoming more reliant on partner hosted solutions as a way to drive down costs, according to a survey conducted by CNBC, “More than eight in ten companies currently use some form of cloud solution, and more than half plan to increase cloud investments by ten percent or more.” “More than eight in ten companies currently use some form of cloud solution, and more than half plan to increase cloud investments by ten percent or more.”
  • 3. 3A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation ask for? The Decision Point Of course, just because other companies are making the switch, doesn’t mean your company should, too. There’s no sense in keeping up with the Joneses just to keep up, yet fall behind in your budget. However, the outlay for upkeep and dwindling morale can end up costing your business much more, even with the upfront investment in a hosting and cloud partner. As the cloud world expands to the masses, the economies of scale truly make outsourcing your data center a more favorable, cost-effective option. The Costs of Hosting Internally: Breaking Down the Dollars Every business must invest in its operations. However, when you host internally, your business is investing in pricey hardware and equipment that is certain to depreciate or become obsolete before your budget has even bounced back. Even if you have already begun implementing a lofty data center or are in the process of updating, there are several incurred costs still left to consider, beyond the upfront investment: – Monthly Expenses – Ongoing Facility Costs (electricity, expert heating and cooling) – 3rd party maintenance contractors to maintain space – Resources (Training and FTE per Growth) – Maintenance, Backup / DR and Updating Equipment – Network Costs (complex networking to maintain and grow) – Licensing Up to 36% cost savings when opting for a hosted or cloud solution After calculating the average costs per an insourced data center vs. a partner hosted/cloud solution the total cost savings over three years is 27%, with an impressive 36% cost savings when compared to a cloud solution. These statistics are based off of findings from the average small- to medium-sized client, industry standards and Symmetry’s data center investments. “Fifty percent of respondents [from the CNBC survey] say they are moving to the cloud because of a desire to cut costs.” “But the cloud is also attractive because IT management feels it’s a better option (44 percent), it will reduce capital expenditures (43 percent) and provide a relatively painless path to modernization of legacy IT systems (42 percent).” 50% Feel the cloud is a better option Feel it will reduce capital expenditures Feel it will provide a path to modernization 44% 43% 42%
  • 4. 4A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation ask for? To weigh your options and estimate your own possible cost savings via a cloud or hosting model costs be sure to consider the following basic must haves: Calculate Your Hosting Costs: – Servers – Disk – Backup Library – Backup Tapes – Rack – Network Gear – Raised Floor & Communication Buckets (1500 sq. ft) – Electrical Whip with Parts and Labor – Software Costs – Operating Costs – Facilities (computer room) – Computer Room Cleaning – Floor space (1500 sq. ft) – Power Electric – Panel Maintenance – Monthly Consumptions (5kW per month) – Annual Inspection (breaker/bus bar tightening) – Power UPS – Battery Maintenance & Testing – System Maintenance – Battery Replacement (3-5 years) – UPS Specific Cooling – Power Generator – Semi-Annual Maintenance with Load Test & Generator Battery – Monthly Transfer Switch & Generator Test – Fuel – Cooling – CRAC Maintenance Equipment Setup and Deployment MPLS Provisioning (10mbps allocation) – Facility Manager – Equipment Manager – Systems Manager Capital Investments Setup Costs Network Cost Monthly Labor Monthly Costs / Facilities / Services (included with hosting and cloud solutions)
  • 5. 5A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation The Benefits of Hosted & Cloud Solutions Services Count as Much as Technology Hosted and cloud solutions are meant to be easy. They offer more capabilities for your business – faster, more powerful computing, seamless functionality, enhanced security and easy scalability. So why task your IT resources with troubleshooting and maintenance responsibilities instead of strategic, growth initiatives? Most IT environments are complex. Every element of the cloud needs to be architected specifically for the applications, and done so by a certified expert team. A reliable IT partner can lend instrumental guidance and complete technical support, from the initial migration to ongoing system management. Don’t feel rushed into choosing a hosting partner either. Even if you decide that now is the time, making any decisions too quickly could result in a deficient outsourcing relationship. Before you make the leap, outline the explicit goals your operations would like to achieve, whether it’s the dollar amount saved, reallocating your internal resources or achieving a more secure, seamless environment. Shop around. There are many solution options, pricing plans and partners to choose from. Profit from More Productivity Your IT resources were intended to add value to your operations – to save business dollars and streamline processes through strategic, technical innovation. And while that is the intention, most IT departments spend the majority of activity maintaining their current system, instead of critical process-enhancing projects. According to CIO Journal, “IT spending accounts for about 3.5 percent of enterprise revenue, on average, but that spending produces a majority of enterprise productivity gains. In other words, effective IT is key to increasing enterprise effectiveness—and according to our research, IT effectiveness is lower in enterprises where strategy is unclear or inconsistently executed.”** The article continues to iterate that the “absence of strategy implies significant waste.” Based on findings, “the typical enterprise succeeds in about 60 percent of its IT- supported initiatives. Take the total IT spend and multiple by 35 percent, the average percentage of IT spending that’s devoted to change initiatives. Now take 40 percent of that figure. That’s how much waste is involved for IT alone. * http://www.cnbc.com/id/48319526/Why_More_Businesses_Are_Using_Cloud_Computing (Jul. 2012) ** http://blogs.wsj.com/cio/2013/01/24/does-strategy-matter-ask it/?mod=wsjcio_hps_cioreport (Jan. 2013) “In a typical enterprise that spends $100 million per year on IT, $14 million is wasted.” X 40% = $100M $14M IT Spend 35% Change Inititive Waste
  • 6. 6A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation ask for? Questions to Ask Your Prospective Hosting Partner: Does your firm support ongoing certified training and internal knowledge sharing? Do you offer flexible pricing and customized hosting plans? Do you have client references I can speak to about their experience? What backup/disaster recovery plans do you offer? When are your contact hours? Will I be able to speak with a real expert or will it be a middle man? Are you certified in the most common enterprise applications? What are your core competencies? How long have you been providing hosting and cloud services? 1 2 3 4 5 6 7 8 9
  • 7. 7A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation ask for? The Symmetry Difference Flexibility isn’t a notion for Symmetry; it’s a definitive practice of delivery. After all, no two operations models are created equal. All customers receive 24x7 coverage from Symmetry’s certified IT experts, with a premier data center network spanning the globe. You choose the hosting option that best meets your business operations, compliance requirements and budget. Any cloud vendor can eliminate the financial burden of owning, maintaining and updating hardware and equipment. But as a trusted IT partner, Symmetry takes it one step further by ensuring we are always delivering the best technology, quality and value to our customers. Through research, client-led development and industry best practices, we continually build upon our multiple state-of-the-art data center facilities. Above all, we believe in giving our customers the flexibility and autonomy they desire with the expert, dedicated support they need. All of our certified experts follow a client-centric approach. No landscape or set-up requirement is outside our realm of capabilities. Our wide-ranging IT talent is versed across the entire infrastructure architecture. Each specialist stays abreast of the latest industry innovations, through internal cross-training, and partner certification programs. Symmetry recognizes and truly understands your unique operational challenges, in order to tailor a solution that will bring the best value to your business. Symmetry has the security, quality and affordability built into our hosting solutions and data center services, specifically designed to reinforce confidence for our customers. Symmetry has combined the certified expertise in hosting architecture with an all-inclusive integrated data center approach through hosting and managing all enterprise applications, through a certified solution that ensures secure, stable, fully redundant,
  • 8. 8A Buyer’s Checklist | Making “Cents” of the Application Hosting Equation and optimally-performing environments. Symmetry’s hybrid data center solutions are road-mapped, built, and supported by industry leading network, infrastructure, security, and application engineer teams. Symmetry customers can take advantage of the improved security and performance available through a dedicated hardware infrastructure. Rather than locking you into a hardware or cloud choice, Symmetry’s cloud services provides the freedom to choose the platform and cloud solution that delivers the best performance, lowest total cost of ownership, while being scalable to grow with your business. Symmetry’s hosting customers can consolidate equipment, scale out without delay and eliminate extra expenditures. Above all, our hosting solutions promise more reliable protection and stability through the multiple layers of security, redundancy, and 24x7 monitoring on-site at the data center and throughout our application management. Not sure what solution is right for your business? Leverage Symmetry’s years of experience and deep technical insight to help arrive at your decision. By following the best practice of delivering honest, strategic guidance, Symmetry’s expert team, works side by side with you to assess your business requirements to ensure the tailored cloud solution is meeting all your business goals. Symmetry then devises a comprehensive cloud infrastructure plan and ongoing cloud strategy that includes hosting of all of your mission- critical and third-party applications. As a true extension of your team, we take the confusion out of the cloud equation - Symmetry handles all of the complexities of the cloud; networking, security, redundancy daily management, system optimization and performance. A certified cloud and hosting provider, Symmetry is the leader in IT managed services by integrating end-to-end hosting solution options with the agility and security of our world- class data center network. The difference is a single- source support team backed by enterprise-grade data centers. The result: peace of mind for you from a seamless, comprehensive delivery model. About Symmetry: Get Started Today: www.SymmetryCorp.com 888-796-2677 | Salesinfo@symmetrycorp.com *SAP is the trademark of SAP AG in Germany and in several other countries. IBM is the trademark of International Business Machines Corporation, registered in many jurisdictions worldwide. All other products mentioned in this document are registered trademarks of their respective companies. Symmetry™ is a leading applications management and hybrid cloud hosting solution provider with deep expertise in SAP application management. As a true extension of your IT team, we place a laser focus on our customer’s experience and offer highly flexible, tailored solutions to meet the unique business needs of enterprise clients. Since 1996, Symmetry has been providing the highest quality cloud, hosting and IT managed services. Our highly trained and certified experts are ready to meet your IT needs with the best, most flexible service available. Our customers have the peace of mind that comes from knowing everything will be taken care of — and taken care of right.