Enterprise Application Hosting - Cost Saving



Nowadays, many of companies purchase their enterprise application hosting excess capacity just in case for fear of losing out on new business/users. Worse, after the project teams have used this excessive, wasteful resource, they prefer to stockpile the servers for fear of not being able to use it again. As a result, corporate data centers were previously undervalued. Even after all of that, having the extra capacity requests imaged, patched, set up, and ready for prime time will take up to three weeks.


Yet, all of this is eliminated with cloud computing. Provisioning is completed in a matter of hours and the data is immediately available. In a serverless architecture, this elastic IT supply model will extend to microservices. This eliminates the need for server resources to be purchased, provisioned, managed, upgraded, or paid for. In addition, scaling the facilities now takes just a few minutes.


What is enterprise hosting?

Enterprise hosting is a data center concept that refers to a company’s software/hardware being outsourced to hosting providers that may also provide training, backup, recovery, and update services.


In terms of the physical infrastructure, facilities, and highly qualified personnel that are needed to build and manage a true 24/7 hosting solution, the prospect of creating an enterprise hosting solution can be cost prohibitive for many businesses.


Enterprise hosting services cover a wide range of hosting and management services that give businesses access to a national, stable network infrastructure. Additionally, enterprise hosting platforms are designed to support business applications within high-performance facilities, ensuring continuous availability, optimal routing, and safe data delivery.

Enterprise hosting services can be configured to meet a number of business criteria, including:


Server VS Serverless (Cloud Computing)

A typical server can be thought of as a virtual machine that reacts on port 80 for requests. For a long time, this has been the internet’s standard. The serverless platform, on the other hand, is one of several cloud computing options that aims to make scalability easier. A serverless app takes a different approach than a conventional app: it waits for requests to come in and then fires up as many instances as required to manage the requests, then shuts down once the work is completed.


Based on data from 300,000 production servers operating in thousands of enterprise computing environments, a joint research survey and white paper released by VMware and IBM titled “Using Virtualization to Boost Data Center Efficiency” found that 20% of servers were running at or below 0.5% efficiency, and about 75% of servers were running at or below 5% efficiency. This underutilization drives up IT costs beyond what is needed to sustain an application.


Meanwhile, infrastructure problems are solved by serverless cloud computing. It enables businesses to scale their infrastructure as needed. The company also face the challenge of reliably forecasting cloud use per application, which is difficult to do without understanding the application layer’s scalability. As a consequence, even in the cloud, it is normal to over-provision infrastructure beyond what is needed. This can be solved with stateful serverless.


The server is a great choice in terms of reliability, as it has historically been the go-to solution for high performance and challenging tasks.


Going serverless isn’t as rare as many people say. In reality, the word has been around for quite some time. It just so happens that it’s becoming less expensive and easier to use, and the businesses that provide it now provide more services than ever before.


Instead of a local server, cloud technology uses a network of remote servers to host, control, and process data (so, not completely serverless). Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) are the three major categories of this technology.

Businesses are increasingly recognising the advantages of these serverless networks. For instance, Cisco recently published a whitepaper forecasting that by 2019, 86 percent of an organization’s workload will be handled in the cloud.


Cost Saving

Asking for a particular budget to run a business-critical application is often a guess in the data center capacity planning model. Worse still, the chargeback is much more difficult. Charging a BU (business unit) for the maximum capacity while they are only operating at 20% capacity is unnecessary and will be resisted, but charging them only for used capacity will increase IT spend wastage costs. However, understanding the exact consumption costs in near real-time allows company the opportunity to negotiate with BUs. It is up to the BUs and business application owners to determine if an application is worth investing too much money in IT.


What would be more convincing is if it was focused on clear criteria. The spending caps, or upper bounds, for any particular application can now be set by BUs. Also, with cloud computing, fine-grained costing was almost impossible in the past. The cost of investment can be easily justified by BUs and other executives using opportunity costs. If the usage or business potential is not maturing, or if the BU wishes to run additional campaign activities, they will alert company days or hours in advance, allowing them to change their spending and request additional budget approvals. This also enables company and others to share resources appropriately between applications, resulting in almost no wasted IT costs.



To sum up, clients that use an Enterprise Hosting solution aren’t responsible for purchasing or maintaining their own servers. As a result, enterprises are able to save money on costly hardware and software while also decreasing the expense of onsite IT staff wages. Furthermore, Enterprise Hosting systems follow a “pay as you use” model, allowing businesses to only pay for the services and software they need. Customers can scale up or down their service package as their company expands.


On the other hand, companies are given the opportunity to customize, scale, and develop the high-performance infrastructure that better suits the needs of their company because they are no longer sharing the server and available resources with other companies. Companies are granted full control over which services they need, as well as the ability to implement their own applications and modules as required.

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