CFOs spend a good portion of their time reviewing and analyzing requests for capital expenditures and their financial impact. Understanding the long-term costs and depreciation of assets is essential to sound financial governance.

IT equipment can cost quite a bit of money. Servers and computing power, in particular, add up quickly. A quick Google search shows prices from as little as $100 to over $8,000. If we look at cost only that $100 server might be very attractive, but will it hold up to the ever-increasing demand? The $8,000 server may hold up to the demand, but do you want to spend $24,000 to have the Development, Production and emergency fail-over environments that a 24/7 demanding environment needs? Remember that the average server has a five-year life expectancy based on the hardware components and the routine changes in operating system requirements.

In addition to the acquisition costs of the equipment, you must include the soft costs of managing the equipment. You need to ensure 24/7 operations, routine administration of the server, patching, and security activities to ensure that not only is it available but it is running in an optimal and secure manner.

The modern business expectation is to be able to access company applications on any device, at any time, at any place. This expectation raises the requirements for hardware support and stability to a new level.

An approach that many large businesses have used to address these requirements is by using cloud-based systems. For many small businesses, the large cloud providers of Infrastructure as A Service (IAAS), can be overwhelming to work with and their pricing schemes do not meet the needs of smaller organizations.

Kotori Technologies caters to Small and Medium Businesses in the Charleston, SC area. It provides a unique approach to serving its local customers by offering a cloud service tailored to the needs of businesses that are small and growing. Their cloud offering can host your company’s systems, provide secure remote access, system reliability, 24-hour monitoring and disaster recovery services. Their expertise in the industry allows them to help you make the right choices between that $100 server and the $8,000 device. They can provide the appropriate level of IAAS for your business to allow you to use capital that had been earmarked for IT on other projects to improve your manufacturing capacity or enhance your distribution operation to effectively optimize your productivity. For more information contact us today.

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