V2 3 Biggest Mistakes when Comparing Cloud and On Premise

3 Biggest Mistakes When Comparing Cloud and On-Premise Solutions

By Shannon Corgan, Director of Marketing

Cloud lowers Total Cost of OwnershipYou’re making a huge mistake when you strictly look at license costs to compare cloud solutions and on-premise solutions for your business. There are so many more costs you need to consider to know the total cost of ownership (TCO) for your business applications.
Here are a few things to consider:

1 blue orangeHardware costs – For on-premise solutions, what servers or hardware upgrades will you need purchase to use the on-premise solution? With cloud solutions, you don’t really need to worry about this. Most are available on any device owned by the company or the employee. 

2 blue orange

IT Admin and Customization – How much time will your IT staff have to apply fixes, patches, and upgrades for an on-premise solution compared to automatic updates from a cloud solution?  How much time will your IT Staff have to work with the software developers to customize the on-premise solution?  

3 blue orangeMaintenance Fees – When you purchase on-premise software you have on-going maintenance fees to access their new features, fixes, and patches. The maintenance fee is typically 15% - 20% of the license fee. With cloud solutions, there is no additional fee for this. It’s included in your license fees.


Now that I’ve given you a few things to think about when you’re evaluating cloud solutions and on-premise solutions, let’s take a look at the cost comparison for a cloud solution and an on-premise solution. Hurwitz & Associates conducted a study on the four-year total cost of ownership (TCO) for on-premise and cloud solutions. They broke down the TCO into five categories of costs which included the costs for evaluating and selecting software, IT infrastructure, license fees, implementation and support, and user training. They found that the TCO for cloud solutions was 77% lower than the TCO for comparable on-premise solutions. The largest TCO variance between the cloud solution and the on-premise solution was due to the hardware, IT Admin, and IT Infrastructure costs required for on-premise solutions. To dig into the details of the TCO analysis by Hurwitz & Associates to understand the cost variances between cloud solutions and on-premise solutions, click here.

The key findings in the Hurwitz & Associates research were:

  • Cloud solutions for user licenses account for 57% of total solutions cost

  • On-premise software costs are about 14% of total solutions cost

  • Cloud solutions require no IT infrastructure costs

  • For on-premise solutions, costs range from $150,000 for 10 users to more than $275,000 for 100 users over four years.

For a better understanding of the hidden costs of on-premise solutions that can increase your TCO costs up to 77%, check out our recent blog, The 12 Hidden Costs of On-Premise Software. Now that you know you could achieve a cost savings of up to 77% with the cloud, you may be wondering how to get started on your own informal TCO analysis to compare a cloud solution to an on-premise solution. No need to whip up a spreadsheet of your own, Software Advice has a great TCO Calculator to try out.

If you haven’t purchased a cloud solution for your business, now is the time. According to the 2018 IDG Cloud Computing Survey, 73% of businesses have adopted cloud technology. In addition, IT departments are allocating 30% of their overall IT spend to cloud solutions. This is an all-time high budget allocation for the cloud.

To learn more about the benefits of the cloud and to simplify your employee time tracking, data collection from the field with mobile forms, or asset tracking, check out our popular blog, 5 Reasons to Move to Cloud. 

 

12 HIdden Costs of On Premise EMAIL

12 Hidden Costs of On-Premise Software 

By Shannon Corgan, Director of Marketing

Instead of continuing to buy on-premise solutions, I encourage you to consider the total cost of ownership associated with managing your on-premise solutions. Realize that every new on-premise solution you purchase, you are multiplying the amount of work for your IT staff to keep it up and running.

Here are the 12 Hidden Costs of On-Premise Software:
12 HIdden Costs of On Premise INFOGRAPHIC

Server1. Servers -  Your on-premise software has to be installed on your physical server that you’ll have to purchase. On average, servers have a general lifespan of 3 to 5 years, depending on the usage. You can extend the life of your server with replacement parts, but there is always a point in time when the replacement parts are no longer available or the cost of maintenance and downtime exceeds the cost of a new server. If you were to use a cloud solution, you wouldn’t have any server costs.

Electricity2. Electricity Costs - You’re likely to consider the cost of your server, but have you stopped to think about how much you’re spending on electricity to run it and cool it? According to the U.S. Energy and Information Administration, the average cents per kilowatt hour is 10.98 for commercial businesses in July 2018.[3] Teena Hammond of ZDNet ran an analysis and one server can average 7,446 kWh per year. [4] That means it would cost you $817.58 to power and cool the average server per year. If you had your software in the cloud, you could save that money. 

Backup3. Backups - Your critical business data is only as good as your last backup. When considering the total cost associated with on-premise solutions, many people forget to account for the IT staff’s labor hours for managing your backups, storing your data offsite, checking yesterday’s backups for any errors, and fixing those errors.

Anti Virus Software

 4. Anti-Virus Software - If you have on-premise software on your servers, you’ll need anti-virus software to protect your data. You'll need to keep the anti-virus software current to keep your data protected. 

Download updates5. Upgrades and Fixes - When you have on-premise software, you’re responsible for updating the software to access new features or apply fixes they have. This can be very time consuming for your IT Staff. You have to plan the upgrades during low peak usage times which is typically late at night or on weekends. You have to also include the time it takes to fix any errors you encounter while doing the updates. 

Downtime6. Downtime - Downtime with your on-premise software can cripple your business’ productivity and can even affect your ability to process sales orders. In a recent survey, small businesses under $50 million in annual revenue and fewer than 500 employees reported that unplanned downtime can cost up to $8,600 an hour and lasted about seven hours. On average, a small business can expect to lose $100,000 in revenue in unplanned downtime annually. [1]

Testing7. Testing - When you're updating your on-premise software to the newest release or applying a fix, most people don’t take into account the amount of time it takes to test the new fix or upgrade. It’s just par for the course that your system admin will be up in the middle of the night taking care of it. 

Integration 50 px Blue8. Integrations - On-premise software has so many more integration parameters to consider. Cloud-based software integrates much easier and dramatically expedites the integration process for all of your software.

Shelfware 9. Over Licensing - With perpetual on-premise licensing, it’s very common that you own more software than you need. This is often a forgotten cost and is often referred to as shelfware. These unused licenses waste organizations $34 billion in the US and UK according to a study by 1E. [2]

Emergency and OT Costs 12 HIDDEN COST ICONS 50 PX 5010. Overtime and Emergency Costs - Getting rid of on-premise software reduces your IT labor hours because they no longer have to spend nights and weekends downloading or testing updates and fixes or waiting for parts for your server. When you move to the cloud, you get to spend more time with your friends and family having fun.    

Unpredictable Budgets11. Unpredictable Budgets - Due to the volatility of emergency and overtime costs associated with updates, fixes, and maintaining the servers, it makes it difficult to predict your IT costs to build an accurate budget. You can’t know exactly when a part on your server will break or when your on-premise software vendor might have a last minute fix to apply. It makes it hard to budget IT labor costs when there are so many unknown elements. 

Asset Management Blue 12. Asset Management - Every year the number of assets your IT department is responsible for tracking grows and increases your IT labor hours. As the number of on-premise software licenses, databases, and servers increases so does the work to audit and track all of your IT inventory. 


You may also be interested in our slideshow, Top 5 Reasons to Move to the Cloud to manage all of your mobile resources for employee time tracking, mobile forms, asset tracking with Workmax all in one place. 

Sources: 

[1] https://www.aberdeen.com/techpro-essentials/downtime-is-money/
[2] https://www.1e.com/downloads/gated/reports/software-usage-report.pdf
[3] https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a
[4] https://www.zdnet.com/article/toolkit-calculate-datacenter-server-power-usage/

 

3 Ways Mobile Forms Drastically Reduce Conference Calls

3 Ways Mobile Forms Drastically Reduce Conference Calls

By Shannon Corgan, Director of Marketing

Most field supervisors fill out daily progress reports to keep all the project stakeholders on the same page. It’s usually a handwritten or typed up report with project status updates to address so everyone knows the current status of the project. Typically, this text-only written report is followed up with multiple phone calls and conference calls to get everyone on the same page to make sure everyone understands the current project status. Then there are even more conference calls to address any issues once everyone knows where the project stands. Have you ever thought about how embedding photos, sketches, and videos into your forms could improve this process? A picture is worth a thousand words, but it’s even better if you can visually communicate something faster and better in fewer words, right?

6 Reasons to Use Media on Mobile Forms

Here are some facts about visual communication:

  • Visuals are processed 60,000 times faster than text [1]
  • 65% of people are visual learners [2]
  • 90% of information transmitted to the brain is visual [3]
  • The brain can retain only 7 bits of information at a time. [4]
  • Our eyes can register 36,000 visual messages per hour. [5]
  • Visual aids improve learning by up to 400 percent [6]

Now that you know using mobile forms with more photos, videos, and sketches improve communication, here are three ways that they will reduce your conference calls:
1Reduce Conference Calls Between the Office and Field - Recently, I had a chance to talk to one of our electrical contracting customers, R.J. Wolfarth of Service Electric and Control, Inc. and he shared the difficulty in getting accurate information when it is passed from the field to the office and up the chain of command using paper forms without photos, videos, sketches, or photos with markup.
“Using paper and not incorporating specific project details in forms to capture the true, real-time information is like playing Telephone. We received inconsistent information from the project managers on a daily basis because we weren’t getting the information directly from the source.” said R.J. Wolfarth, Vice President of Construction, “By utilizing WorkMax mobile FORMS, we eliminated the need for a project management role on all of our smaller scale projects. We found that the project managers actually hindered our job-specific milestones due to inaccurate information regarding overall progress. WorkMax mobile FORMS now answers all of the questions and delivers the information more accurately than we have ever seen.”

2Reduces Status Update Calls to Clients - RJ also likes to share the photos, sketches, videos, and photos with markup with clients. The mobile forms are available at his fingertips to quickly share any daily progress updates with them. His clients don’t have to open a bunch of photo and video attachments and wonder what the picture is of or what part of the report it’s referencing. The photos and videos are all in one documents along with any written descriptions.
WorkMax mobile FORMS enables us to keep the customer fully updated with no gray areas. They no longer require weekly conference calls because we answer their questions with WorkMax mobile FORMS. We can devote our time to answering specific questions or troubleshooting for the customer versus trying to identify what has actually happened,” said RJ Wolfarth, VP of Construction for Service Electric and Control, Inc.

3Reduces Conflict Resolution Calls to Clients - Building clients’ trust takes time. Clients can be skeptical when you let them know about issues that arise on your projects, especially if the project isn’t in the same town they live in. It’s not always feasible for your clients to drive to the job site or jump on a plane to inspect the issues in person. This can lead to lengthy conference calls with your clients if they don't understand or can't see what is causing the budget increases or schedule delays. When you use mobile forms with photos and videos, you can send your clients marked up photos and videos to see what’s going on with the project without being on the job site. Seeing is believing. You can visually communicate information more clearly and quickly to be on the same page with your clients. It also doesn’t matter where the project is and doesn’t matter where you or your clients are. Everything is available to all your project stakeholders anywhere, anytime, and on any mobile device with WorkMax mobile FORMS

Watch a video or see a WorkMax mobile FORMS demo to improve how you manage your communication from the field to the office to the clients.

 

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References: 
[1] http://web.archive.org/web/20001014041642/http://www.3m.com:80/meetingnetwork/files/meetingguide_pres.pdf
[2] https://www.forbes.com/sites/tjmccue/2013/01/08/what-is-an-infographic-and-ways-to-make-it-go-viral/#33f0f1ba7272
[3] https://justin.vashonsd.org/Resources/HOM/Learning&LeadingWithHabitsOfMind.pdf
[4] Burmark, L. (2002). Book Visual Literacy Learn See. Assn for Supervision & Curriculum. https://www.amazon.com/Visual-Literacy-Learn-See/dp/0871206404
[5] Jensen, Eric. Brain-Based Learning (Revised). p 55. CA:The Brain Store, 2005.
[6] http://web.archive.org/web/20001014041642/http://www.3m.com:80/meetingnetwork/files/meetingguide_pres.pdf

Blog Win More Bids with 3 Employee Time Tracking Features

Win More Bids with 3 Must-Have Employee Time Tracking Features for Progress 

By Shannon Corgan, Director of Marketing

Project bidding is getting more and more competitive each day. The more accurate you're tracking labor hours and the associated production units completed by task, employee, or crew, the more you can rely on actual costs to build accurate future bids with information from your mobile employee time tracking solution. With an employee time tracking solution like WorkMax TIME, you will be confident in your historical actual project costs which will allow you to bid more aggressively and ultimatelly win more business. 

Here are the 3 must-have employee time tracking features that are going to win you more bids: 

Personalize Units of MeasurePersonalize Units of Measure to Fit your Business - If your unit of measure for what is completed or produced on your projects isn’t standard cubic feet of concrete laid per day or square feet of drywall installed, you don’t have to worry. WorkMax TIME allows you to personalize the labels for your units of measure to make sure you can accurately track what’s produced on your projects. You choose your units of measure to match what your employees complete on the project. If you’re a honey farmer and you measure the honey produced in each beehive in gallons per day, you have the flexibility to create a unique unit of measure that works for your business. This means you can better estimate what that colony of bees will produce in the future for more accurate and predictable revenue. You can also identify if there are any issues by comparing historical production units to current production units. When you’re creating bids and estimates, you will know you are always comparing apples to apples when you reference similar projects to bid on new projects. The more accurate you can get with your labor hours for your bids the more aggressive you can bid on the project. 

 

Enter Production Units By EmployeeEmployees Prompted to Enter Production Units On Task Change – When employees are using their mobile devices to track their production units, WorkMax TIME prompts employees to enter their production units every time they change tasks or activities. Typically, a supervisor is completing a daily log report to discuss progress on a project. Even if they wait to enter what they completed for the day on a Daily Log Report, you’re relying on their memory after a long hard day’s work. They may have forgotten a few things that their crew completed by the end of the day. Throughout the day, your employees can see what they’ve accomplished and it will motivate them to get as much done each day as possible. The sooner they add in their production units, the more accurate the production units are. As a result, your bids are more accurate.

 

Track Production Units Per TaskTrack Production Units Per Task – Get accurate production units and know how much has been completed per task during the day from the comfort of your office. Everyone in the field and in the office will know what has been completed throughout the day from any mobile device too. Another reason you want to track production units per task is that your project may have tasks that have dependent tasks or activities. You’ll want to know when the first task is done before your staff starts on the dependent tasks to make sure your project schedule stays on track. By tracking production units per task, you’re also making sure that you’re comparing the same task or activity to the same activities. This helps you create more accurate bids based on how many man-hours it would take to complete a project. 

 

 

WorkMax TIME is the only cloud-based mobile employee time tracking solution to combine employee time tracking with tracking production units completed by employee, crew, or task. With WorkMax TIME, you can measure what's completed by employee, task, or crew to build accurate estimates and bids. You know that you're building the most accurate bids to win more business by personalizing the production units of measure for your company and prompting employees to update what's completed as they change tasks throughout the day with WorkMax TIME

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