Business System Consultation Center - Our Business System ColumnVol.67 2016.10.01 Takahashi Minoru

[Cloud Talk] It's not the in-house server that's the burden — it's the employee who monopolizes it

Thank you for your interest and continued support.
This is Takahashi from the Marketing Plan Research Laboratory.


Some people loudly insist, “The cloud is expensive!”


Certainly, when comparing the “one-time cost of buying a server” to the “monthly fee you must pay for a cloud server,”
the cloud clearly seems to be exorbitantly more expensive, and in fact, you are correct.


However, we
take the position that “the cloud is by far the cheaper option,”
and we recommend the cloud.


There is no contradiction between the two arguments.
It’s a matter of what you’re comparing.


When it comes to the cost of purchasing a server and installing it in-house,
we explain to company presidents that they should consider costs based on the following concept:
That cost consists of the sum of the following expenses and risks:
・One-time costs associated with purchasing the server (unit price, total manufacturer maintenance fees)
・Loss of service life resulting from preventive replacement (replacing a server that is not yet broken)
・Annual salaries, bonuses, pay raises, and benefits paid to employees managing the servers
・The impact that the server management staff themselves have on the company culture


While some factors cannot be quantified,
When I bring this up, there are CEOs who hang their heads in silence and slap their knees.
What do you think?


That's all, Thank you for reading.

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