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Pay as you use or subscription based pricing. What to choose?

Autor: Bit Software

When it comes to the cost of the cloud, it is important to analyze all cloud`s models: Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS). Those three different service models for the delivery of cloud computing provide companies with the ability to mix and match the best service model to the business needs of their organization, based on requirements and payment options and depending on the vertical industry and specific applications portfolio.

Then choose the model or combination of models that offers you the most benefits at the lowest cost. Because each model has its own costs, based on a various factors, from storage space needed to monthly traffic. To arrive at a total pricing for a cloud service, user organizations must take note of individual service elements that a provider bills for and how these are calculated. For instance, does the provider bill based on within server traffic, storage space needed, server CPU time or a combination of these factors along with other elements?

Another important factor in determining the total cost is the type of service required: dedicated server to running applications in the cloud, cloud-based backup or basic hosted storage. The easiest way to break down pricing is to focus on the primary services offered, because most cloud providers split their services into three areas: servers in the cloud, storage in the cloud, sites and applications in the cloud.

You must know that there are two pricing models for cloud computing services: pay as you use or subscription based pricing. Under first pricing model, customers are charged based on their usage and consumption of a service. This pricing structure makes users fully aware of the cost of doing business and consuming a resource, since the cost comes out of their pockets, or, in the enterprise world, their own budgets. The second model is the simplest pricing option, where the customer is billed on a fixed monthly basis. For example, a virtual machine can be offered at a fixed cost per month. The consumer is billed the same amount every month without consideration for actual usage.

To determine a pricing model that provides profit to a company that uses cloud services, it is necessary to know the direct and indirect costs of providing these services. Costs can be initial or ongoing. Initial costs, also known as capital expenditures, or CapEx, include the costs to acquire assets such as hardware and facilities (power and cooling infrastructure, server, network, and storage hardware, software licenses, including operating system and application software, cables, etc). Ongoing costs (OpEx) include all costs for keeping the business or facility running, such as: payroll, facilities, hardware and software maintenance, backend cost, etc.

When you calculate the monthly cost for cloud computing deployment, you must take into account both capital and operational expenditures. For capital expense cost items, the cost of each item needs to be amortized over the life of the item. By combining the OpEx with CapEx, the total monthly costs of the cloud deployment can be determined.

If you have a limited budget, work with projects or cannot predict which resources you'll need over a longer period, then you choose “the pay as you use” pricing model. If you require more control over the hosting budget and want to use the cloud for a longer period, you must choose the subscription based pricing.

 

Sources: Cloud Spend Management, Google Tools, ComputerWorld, PC World, Cloud Tweak, Cisco Systems

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How do we measure the cloud's benefits?

Autor: Bit Software

Do you use webmail? Or Gmail / Yahoo! Mail / Hotmail, etc? Do you communicate by messenger, whether it’s GTalk, Live Messenger, Yahoo, Skype or others? Then it means that you are in „cloud”. Messenger is the simplest example of cloud: an application that uses an instant communication service hosted on a server about which you know nothing.

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GDrive – Google Cloud Storage Service, soon to be released

Autor: Bit Software

Two of the most prestigious research and consulting companies in business software (Gartner and Forrester Research) predicted an increased activity in the cloud computing area for 2012-2013. Increasing sales, diversifying offers, the appearance of new „clouds” (public or private), are just few of the aspects on which Gartner & Forrester experts bets.

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Data mining and predictive analysis with MicroStrategy

Autor: Bit Software

Organizations gain a competitive advantage when they can increase the sophistication of their BI applications. One way to achieve this is to move beyond basic historical reporting and evolve to strategic, predictive analytics and alerts that help anticipate the likelihood of a future event, such as customer churn. Your business are as full of information like the DNA, and precious as gold. All you have to do is learning how to discover them. And use them. And with MicroStrategy Data mining and predictive analysis you can extract everything that is valuable from your data.

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Improve sales, perform market basket analysis and cross-sell opportunities by using SocrateBI

Autor: Bit Software

If your company activates in retail, distribution, services, telecom, or in any other consumer-oriented business environment, you know that understanding customer motivation to do or not do a certain acquisition is essential for your business survival and development. You need to quickly identify changes in consumer tastes and preferences and act immediately to improve their experiences.

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Cloud solutions hold the potential to dramatically change the businesses that adopt them

Autor: Bit Software

As I said in an earlier post about ERP Prediction for 2012, this year cloud-based ERP will continue to gain ground at the expense of traditional ERP. Why? Because enterprises will continue to adopt SaaS-based applications to replace legacy, high-maintenance and often marginally effective systems in use today.

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Google Apps, the key to a successful communication

Autor: Bit Software

Operating costs as low as possible, increased productivity, innovation. These are some of the major objectives of managers today. Therefore, more and more of them started to look toward online communication and collaboration applications. And more than 4 million companies and 40 million users now handle their e-mail, documents, and other office tasks using Google's online professional office suite, Google Apps. And for good reason. Because Google Applications offer a stunning range of cloud-based productivity options to even the smallest firms. Everything you do at work is now available anywhere, anytime, from any online connection. And it's all for just $50 per year per user for the Business version, which includes additional storage and high-quality, unlimited support.

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MicroStrategy Social Intelligence lets your company more effectively engage and monetize your Facebook fans

Autor: Bit Software

Not long ago, enterprise social media used to be quite simple. Some blogs, used sporadically by a few employees to explain to what use or how to use a certain product/service of the company. Or a bit of social media for marketing purposes.

Now, social media is a growing component of enterprise communication and collaboration. Increasingly, the world is using social networks and other social media-based services to stay in touch, communicate, and collaborate.

In a recent survey realized by Frost&Sullivan PR Agency on 200 C-level executives in North America, sixty-nine percent were closely tracking „social media, placing it ahead of telepresence, VoIP, shared team spaces, soft phones, and even unified communications and unified messaging”. Almost half of the respondents say social media is used within the organization, and 41 percent use the technology personally. Among executives who report social software in use within their company, 67 percent say it is used extensively at all levels of the organization, and another 26 percent say it is used mainly by senior management. The message is that companies are going to use social media as a primary channel in the very near future, if they aren’t already. It’s time to get strategic.

Therefore, both Gartner and Forrester Research said that in 2012 just integrating BI with Excel isn’t good enough any longer and users will demand BI tools that are integrated with email and collaboration platforms. As I said in an earlier post, Gartner predicts that by 2013, 15% of BI deployments will combine BI, collaboration and social software into decision-making environments.

MicroStrategy, the largest independent BI provider, which is present in Romania through its partnership with BITSoftware, has taken already ahead of „predictions” and provides a platform for analysis and synchronization of data business and Facebook! „MicroStrategy Social Intelligence”, which contains three modules (Wisdom, Alert & Gateway), lets your company more effectively engage and monetize your Facebook fans.

MicroStrategy Wisdom allows you to get to know your Facebook fans as well as their friends do. You can segment your users based on their interests and motivations (they are, where they come from, and what they like, what activities they enjoy, places they like to go, etc), so that you can target each segment with more relevant and valuable offers and increase engagement with individualized content and recommendations.

With MicroStrategy Alert, you can add marketing and commerce features to your brand's Facebook page to personalize the consumer experience, increase fan engagement and monetize your fan base. Also, you can turn Facebook fans into friends by delivering highly relevant offers, content and promotions to them, encouraging frequent page visits and drawing their attention away from competitor's pages.

With MicroStrategy Gateway, you can gain a 360-degree view of your Facebook app users, combine your corporate view with their social view to see the complete customer and use it to create a one-of-a-kind experience for your customers.

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The trend of the future: ERP goes mobile!

Autor: Bit Software

I said, in an earlier post, that people at Gartner claimed that the ERP solutions will become mobile. At the base of this statement lies the fact that despite the global economic downturn, it is still something that organisations are willing to invest in: mobility.

With mobile devices becoming omnipresent, the companies can benefit from improved quality of service, greater productivity or deeper business relationships. Now, it is more important how a producer chooses to sell than what they sell. For the sales teams, to have immediate and real-time data on what’s going on with orders, customers and suppliers is critical. So, ERP mobility will be a dominant force from the shop floor to each sales call where quotes, orders and contracts deliver real-time order and pricing updates.

Therefore, beyond mobile devices already integrated with ERP solutions (handheld, pocket PC, etc.), the managers and executives are already pushing for service delivery on mobile devices like iPad, iPhone, BlackBerry, Android etc. Why? Because the expectations are very high for having real-time updates on a series of benchmarks that the management team uses to manage their many businesses on mobile platforms. Plus, according also to Gartner, by 2015 the tablet market will be 479 million units and the PC market will be only just ahead at 535 million units. In other words, in three years the tablets alone are going to have effective parity with PCs. And, in most of the companies, the mobile devices will replace the traditional laptops, much heavier and more voluminous. Which will push ERP manufacturers to deliver those services including on iPad, iPhone, BlackBerry, Android, etc.

And, being able to mobilise ERP applications, the companies will achieve an important competitive advantage.

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Predictions for 2012: ERP Markets Are Changing Rapidly

Autor: Bit Software

Business applications like ERP are undergoing many changes. The realities of cloud computing, the accessibility provided by mobile technologies and the impact of social media are all affecting the business application environment. Market research conducted by some of the most important companies in the field have shown which are the managers' expectations from ERP systems for 2012 and beyond. Here are some of the highly anticipated predictions for 2012:

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