Application Management: Traditional vs. Hosted Application Outsourcing

Application Management:

Traditional vs. Hosted Application Outsourcing

Application Management

• Market has been trending to application management outsourcing because of the significant business value

• The difference between traditional and hosted– Application Location – traditional houses apps at

the customer site, while hosting accommodates the applications at the service provider site

http://www.oneneck.com


• The difference between traditional and hosted– Hardware Procurement, Financing and Configuration

– company is responsible for these functions in traditional outsourcing, while service provider assumes the responsibilities in a hosting model

– Hardware Management – company is responsible for hardware management in traditional model, while service provider is responsible for managing all hardware and guarantees high level of availability in hosting model



• The difference between traditional and hosted– Infrastructure and Application Sharing – neither the

infrastructure nor the application is shared in a traditional model, while in a hosting model infrastructure may or may not be shared

– Advance Technologies – service provider uses automated provisioning, management, monitoring, maintenance technologies and virtualization in a hosted model. These technologies are designed to reduce costs from traditional models



• The difference between traditional and hosted– Pricing – flat, per user amount each month for hosted

model, while traditional models can involve much complex agreements

– Upgrades – no need to worry about software upgrades, patch releases, etc. The service provider assumes this responsibility in a hosted model arrangement

• Services can be tailored to specific requirements. The main value proposition on all outsourcing models are lower cost higher service levels



Leveraging Application Management into the Future• Application management outsourcing will

increase due to cost savings, greater agility, reduced risks and improved system performance

• Business have realized it’s not economical to staff 24/7 operation with experts in all aspects of ERP management



Leveraging Application Management into the Future• Improved business agility – companies can

direct their energies to accomplishing corporate goals

• Lower risks and improved business performance – companies will reduced risks of data loss and service provider creates higher availability for any upgrades or latest technologies



Leveraging Application Management into the Future• Companies will remain focus on cutting costs

and enhancing operational efficiencies• Goals can be achieved through effective

application management outsourcing• In-house management ERP applications proves

to be unnecessarily expensive


About the Author

• Chuck Vermillion is CEO and founder of OneNeck IT Services, a leading provider of hosted application management and managed services since 1997. For more information about Application Management, visit http://www.oneneck.com/Solutions.aspx today.


http://www.oneneck.com/Solutions.aspx

Application Management: Traditional vs. Hosted Application Outsourcing

Technology

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