Easiest way to reduce your company's operating expenses

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When we are operating a business in the field, cost drives a major role especially for operating the business such as often abbreviated as OPEX, that includes rent, equipment purchases, inventory purchases, marketing, payroll, insurance, IT infrastructure, and funds allocated for research and development.

Here we are going to discuss, how do you easily reduce the IT infrastructure related expenses and effectively run the business without impacting the business operation and performance. 

Normally, companies have an IT division and IT-related assets such as servers and computers. For servers, you have to put extra consideration because it processes the business data and stores files to generate reports for the business management. It has some critical data and sometimes it will be the heart of the business. Therefore you have put firmed physical security and enable a good environment to run the servers.

What requires to run the servers within company premises 

  • You should have a separate secured area to operate servers such as a server room with a server rack and raised floor
  • You should have a SAN with structured cabling, switching, and routing (server network)
  • It should have proper security measures 
  • Good electricity system and UPS system
  • Cooling system and the air-conditioned environment with heat sensors 
  • You should have a fire alarm system
  • Should have a dedicated employee to maintain the server

These are the fixed cost when you are operating servers in-house and when you purchase a new server then you have to invest another amount at once as the total cost of ownership. 

What are other variable costs?

When you are maintaining a server, you have to do periodic maintenance such as cleaning and replacing parts and upgrade the components such as replacing network cards, replacing UPS.

Until fixing the broken device, you have to take a rented one as a temporary solution. 

To maintain a basic server in your company you have to spend at least 50000 LKR per month. Sometimes you couldn't maintain the server with manufacturer recommended standards and some servers will malfunction and reduce performance after 4 or 5 years. 

What if you take a dedicated server from a reliable service provider you will have at least 7500 LKR cost per month and you don't have a massive initial investment and TCO is less. Let see our example, you can save 42500 LKR. 

If you have a dedicated server in a private cloud, you won't have the following expenses anymore.

  • Electricity expense for servers
  • Electricity expense for the air conditioner in the server room
  • Don't need to worry about the physical security 
  • Labour charge for a dedicated employee for maintaining the server 
  • No investment for the fire alarm system and fire insurance for server room
  • As for the variable cost, you don't have server maintenance costs and warranty claims.

This is one of the easiest ways to reduce the operating cost in your company. 

Dedicated server Fujitsu PRIMERGY RX1330 M3 with more RAM by axleta


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