Evaluating the case for cloud
Manage high labor costs associated with an on-premise ERP system.
- Decreased hourly labor costs by 90%
- Provided a solid disaster recovery plan
- Increased student-facing time for staff
Connecticut State Colleges and Universities shares its cost model for calculating cloud efficiencies
Joseph Tolisano, Chief Information Officer, Connecticut State Colleges and Universities
Our labor costs were very, very high, so we were looking for a partner to get us to a more cost-effective model. So, we have five instances of Banner around our state, and the costs to run those were getting very, very expensive for us on premise. Moving them to the Cloud gave us more security, monitoring, and a more cost-effective solution for us to move forward.
And, the cost model that I used represented the cost per hour. So, as a simple formula, we looked at the number of employees that we had across the system that were maintaining our five instances. And, how we developed the cost model, is we basically look at their gross salary times the number of hours they worked per week. And then we just did a simple calculation of what it cost per hour. We did the same thing once we moved to the Cloud. So, for the five instances of Banner, it was running us a little over $3,000 an hour to run those on premise.
Once we moved to the Cloud, the cost model changed to just over $300 an hour, because you're maintaining and monitoring those systems 24 hours a day. You're doing all of our upgrades. You provide full DR [disaster recovery] for us. So that model became very attractive to the senior leadership.
You don't want to spend your limited, scarce resources on very good staff that do great work but literally are just maintaining the application, patching it. That all can be done in the Cloud more cost effectively that it can be done on premise, and get into maximizing the investments you've made, and the applications you've purchased, and try to get those highly skilled technicians that are in IT moving to more of a business focused, functional relationship with their end users to get that best investment you can out of the product.