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Host Advantages

RESOURCE CONSTRAINTS. Hosting an application is most applicable when an organization does not have the time, money, people or skill sets to buy, build, implement and support software applications or build a 24 x 365 IT infrastructure. A hosting company can amortize their costs over several clients - you can't.

INITIAL COST. In-house hosting requires a considerable investment of upfront costs in capital, personnel and time. If these resources are outsourced to a hosting provider, the client can divert their staff to more strategic objectives to drive their business.

ACCOUNTING. No "one-time" capital acquisition costs for hardware and software. By shifting resources off the balance sheet, a company can increase borrowing capacity and improve key financial ratios such as debt/equity and return-on-assets. A set monthly fee is tax deductible and helps manage cash flow.

CASH FLOW. Compare the costs of a three year hosting subscription, with the software license paid up front, including installation, maintenance and support, hardware procurement and depreciation, people costs and all the rest. Hosting is typically less expensive than owning. Do the math.

CORE BUSINESS. Focus on what you do best. For applications that aren’t strategic, hosting may be the best use of your IT dollar. These are high maintenance items that consume your IT staff’s time (e.g., email). Outsourcing will relieve your staff of these daily duties to refocus on more strategic tasks.