cloud vs. self hosted software options

To the Cloud! Look Before You LeapLive Webinar June 19, 2014

View the recording at

www.youtube.com/user/echogroupsoftware

To the Cloud!

This presentation speaks directly to today’s organizational decision makers needing to sort out the pros and cons of the different hosting approaches presented by vendors as well as internal team members.

Defining Terms

On-Premise or Self-HostedAn organization hosts their own software product on their own technical infrastructure.

CloudAny approach to using software facilitated by the Internet and managed by a third party.

HostingContracting with a third party to provide Internet- based access to a perpetual software license that your organization owns.

Software as a ServiceContracting with a third party for use of a software product available through the Internet for a specified contract term.

On-Premise Solutions

• AKA Self-Hosted

• Still the most common way to use software

• Owned software, infrastructure and staffing

• Self managed backups, Disaster Recovery, and security

Cloud Solutions

• Growing rapidly• Hardware sales down, Cloud contracts up

• Multiple flavors• Infrastructure as a service (IaaS)

(Servers, Network, Storage)

• Platform as a service (PaaS)(Web Servers, Database Servers)

• Software as a service (SaaS)(Email, Applications, CRM)

Value

Determining whether the best choice is a cloud solution or an on-premise deployment is ultimately a question of value for your organization.

Depending on your current situation and long term goals, “value” can take on different meanings.

Technical Considerations

On Premise

• Use existing infrastructure and/or Virtual environments

• Requires investment in infrastructure

Cloud

• No additional infrastructure, etc. to manage

• Adequate bandwidth

Staffing Considerations

On Premise

• Staff costs

• Staff Expertise

• Building expertise may be critical to your goals

Cloud

• No recruit, hire and train

• Manage a contracted result, not staff.

Contract Considerations

On Premise

• Data ownership is clear

• Data control

• Control of problem resolution

• Security Responsibility

• Shorter contract term

Cloud

• Data ownership must be defined

• What can the cloud provider do with the data?

• SLA

• Security Responsibility

• Multi-year term

• End of term conditions

Fiscal Considerations

On Premise

• Front loaded costs

• Periodic upgrade investment

• Capital budget

Cloud

• Lower barrier to entry

• Predictable payments

• Operating budget

Flexibility & Control

On Premise

• Investment controlled by you

• Physical location changes time intensive

Cloud

• Locked-in investment based on contract

• Scale on demand…

Opportunity Costs

On Premise

• If you haven’t built infrastructure/expertise, what can’t you pursue?

• Does infrastructure/expertise make you a better partner?

Cloud

• If you’re consumed with implementing technology what can’t you pursue?

• What kind of partner is your Cloud provider?

Get a better understanding…

Comparison Calculator is available for download at www.echoman.com/webinar

On-Premise or Cloud?Ask yourself these questions:

1. What are your strategic priorities?

2. Is it better for you to invest in software/infrastructure now or do you need to finance technology over time?

3. Is your organization expanding or changing physical locations? Is scalability important to you.

4. What kind of partnerships are you considering and what role does technology play?

5. What are the skills of my IT team?

6. What is the workload of my IT team?

7. Do you have adequate hardware and software infrastructure to implement the desired solution?

The Echo Group

Providing software and service solutions

to the behavioral health community.

Contact Information

Joe VigerVP of Business DevelopmentThe Echo Groupjoseph.viger@echoman.com

Mike KassonDirector, Information TechnologyThe Echo Groupmike.kasson@echoman.com

View the recording at

www.youtube.com/user/echogroupsoftware