Beyond Debate: How the cloud is a clear winner for start-up firms
Start-up firms are notoriously risky—a fact supported by overwhelming evidence in the form of the vast majority failing within just a few months or years. In most cases, start-ups have to deal with material cash constraints and any opportunity to conserve capital should not be taken lightly. This case study focuses on the IT spend of a start-up provider of procurement and distribution services in the specialty pharmaceuticals industry and highlights the savings which could have been achieved had the cloud been utilized.
The Back Story
Upfront IT Investments
As shown, the company incurred approximately $12,925 in IT spend for equipment and an additional $3,100 in IT spend for associated labor costs for a total of approximately $16,025. Note that these costs do not include any of the following: the downtime (and lost productivity) experienced during the installation, configuration, and testing of the IT infrastructure which totaled four (4) days; ongoing support in the form of a managed service contract; or printers (supplied by the founder of the company). Additionally, it is important to keep in mind that these costs were incurred to support five (5) users, despite the company needing less than that number in its early stages (at this time, only one or two users are active in a given month as operations ramp up).
The Qnectus Cloud Alternative
As may readily be seen, the total IT cost for Months one through three were $923—approximately 6.0% of the total upfront costs of $16,025 (a 94% savings) which were actually incurred. This estimate is particularly striking given that it includes the following: hardware in the form of thin client devices; a virtual desktop environment with a Windows 7 themed OS; hosting and management of Microsoft Office; fifteen (15) day rolling backup of all data; and on-demand,
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