IT

Questions worth asking while outsourcing

By Ashutosh Jha → Monday, May 17, 2021

Outsourcing programming work is becoming increasingly popular. However, what can be done to ensure that everything within this type of collaboration goes as planned?

From January to December in the U.S., nearly 400,000 openings are filled by people or companies from outside the country. Entrepreneurs admit that the factor that improves the attractiveness of outsourcing is that it allows them to save high financial expenses without reducing the quality of the final products. 

Almost 80% of organizations based in different countries worldwide are ready to recommend IT outsourcing. If you want to join them, find out more about IT outsourcing and what principles this type of cooperation takes.

What is IT outsourcing?

Most projects implemented in this model are programming works. It is because these works are costly when it comes to maintaining the development team onsite. So that, for many companies, IT outsourcing is the only way to complete the project.

Why is IT outsourcing gaining popularity?

Besides the financial issues, outsourcing is an excellent answer to the constant lack of available and highly skilled developers. But, unfortunately, it isn't easy to find them in the same city. In turn, in the context of highly specialized skills, sometimes it is impossible to hire them in the same country. Of course, there are developers nearby, but they are often either already busy or too expensive.

Another limitation contributing to the growing popularity of IT outsourcing is the fact that some projects must be completed quickly, within a strictly limited time frame. In such cases, independently assembling a whole team of programmers with the necessary experience is very difficult or even impossible.

 

Therefore, if you decide to recruit such a team on your own, you should reckon with a prolonged recruitment process to create an outstanding team. In the outsourcing model, you can choose from multiple offers of programmers who know the technology you are interested in, have experience in similar projects, and are cheaper.

Outsourcing IT will work perfectly when you want to be one step ahead of your competitors. Deciding to cooperate in this model, you can freely choose a team that has exceptional skills. A group that would be hard to reach in any other form or that you could not afford in the classic employment model. Imagine that you operate in an industry where your application will require the complex pairing of its operation with data collecting information about physical activity. In such a situation, you should cooperate with a team experienced in similar implementations.

IT outsourcing as an answer to difficult recruitment?

Recruiting an internal team of programmers costs a lot. If the company has no experience in this area, the process can be even more expensive. Accepting people who do not meet the requirements is highly likely if we do not know how to test their skills. It translates into team turnover and high costs before the actual project work begins. If you want to pay only for the job done, from which you can derive real benefits, fixed-price billing will be ideal for you. It is typical for most outsourcing companies.

IT outsourcing - what are the benefits for entrepreneurs?

When you decide to outsource your programming work as a business executive, you can take care of the organization's core business with peace of mind. In addition, you will have the time and space to continue giving direction to the company that will lead to its growth.

Moreover, when choosing a reliable technological partner, outsourcing will mean that your project will be carried out by people who have extensive knowledge and experience in the IT field. Therefore, you will be able to count on them for advice on whether it will be possible to implement given functionalities using specific technologies or frameworks. Moreover, you will be sure that the team will implement all the features at the highest level.

Which technological partner to choose?

If you want to work with an overseas development team, we recommend that you learn the structure of the company you want to act with.

Many companies look qualified. However, even short research shows that they have been operating for a few months, and a group of inexperienced programmers runs the company. Check out how many people are employed by the company and what projects are in their portfolio.

Meet the programmers and management team in person. Arrange a meeting online if a traditional visit is not possible. Ask for a brief history of the company and its structure. Ask about anything you think needs clarification. Talk about your plans and see if the company you are about to work with has experience with similar projects or what plan they have for your project.

How does the team outside my company work?

The way the team organizes its work may be different depending on the organization. Therefore, at the beginning of cooperation, ask the project manager how the partnership looks and what you should expect at the given stages of collaboration.

If you decide to cooperate with an experienced digital agency, you should expect a highly structured process. For example, some software houses prepare materials for their clients in which all stages of the process are explained step by step.

At Applover software house, we divide the project process into five phases:

First phase: Brief

It is a document containing questions related to your project. The answers you provide will allow our team to understand what functionalities you expect.

Second phase: Initial valuation

Based on the first phase, we create the initial cost of the project and the time frame in which the team will implement them.

Third phase: First workshop session

This is the first workshop meeting, which will allow us to obtain more complex information on your project. This phase will result in the project specification, graphic design outline, and functional analysis. The workshop can take place at our or your office. There are also no obstacles to conduct it remotely.

Fourth phase: Second workshop

The next workshop is conducted to clarify any ambiguities. The goal here is to write the final project specification and preliminary design of the product appearance.

Fifth phase: Kickoff

It is the moment when all team members know the specifics of the project. We set a date for a start. Then, programmers, designers, and project managers start working on the creation of your product.

Should my partner be experienced in similar projects?

Check if the team you plan to cooperate with worked with the technology, you're interested in. If you haven't chosen it yet, see if the team has worked with a similar industry or one with which you share similar characteristics.

Case studies will give your insight into the projects the company has worked on. If the team has done a similar project to yours, they will most likely understand your plan and goals very well. Check what previous clients say about the company. Where to look for them? Best on Google or Clutch, where entrepreneurs are willing to share their experiences of working with outsourcing companies.

What if a company has no experience in a similar industry but seems to be a good candidate for a technology partner? You don't have to cross out the possibility of cooperation right away. Instead, check if their previous realizations share similar areas to those you care about. If such verification is successful, then probably the lack of experience will not be a problem.

How does the communication with the team look like?

In this type of cooperation, we always emphasize that communication in IT outsourcing is critical. That is why it is so important to ask how the contact will look like. What tools the team uses and how often you will receive summaries. The last part depends only on you.

In the beginning, it is necessary to determine what ways the contact will take place and how the project is managed. For daily communication, Slack works excellent. However, when it comes to video calls, Google Hangouts or Skype are perfect.

We encourage you to use such tools because they provide insight into the project. Furthermore, when you are in constant contact with the team, then, as soon as possible, you will be able to answer any doubts that you will only respond to due to your excellent knowledge of your business.

Execute the project internally or outsource?

The answer to this question will never be clear-cut and will depend on your project's specifics, needs, and opportunities.

However, working in the IT outsourcing model is undoubtedly extremely attractive. It allows access to highly skilled programmers and cooperation with specialists who have vast experience. However, if you wanted to hire them in your own company, the costs would be disproportionate to the expected returns associated with the implementation of the project.

IT

Why Choose Ukraine For Outsourcing?

By Ashutosh Jha → Wednesday, January 13, 2021

After the collapse of the USSR, the Ukrainian economy was in a lamentable state. However, looking to the west, the country tried to develop not only in a stable agricultural sector for itself but also bring new technologies, and therefore new professions into the life of Ukrainians.

World outsourcing develops in different directions, however, in Ukraine only the IT direction is widely used. Since 2003, it has shown incredible growth.

One of the companies that specialize in affiliate marketing is Tres Commas https://tcommas.com/networking/. They know how to help a business get more clients while outsourcing.

In 2016, Ukraine finally secured the status of a country beneficial for cooperation. More than 100 000 people were employed in the IT sector alone. At the same time, another direction of outsourcing, KPO, gained momentum since there were more than 100 research centers in Ukraine including even Cisco and Samsung.

Back in 2015, the volume of software exports in Ukraine has estimated at around $2.5 billion, and a year later this figure was $3 billion, showing an increase of 15-20% in 12 months.

Approximately 80% of export went to the United States. Today, almost the entire industry (86%) is concentrated in 5 large cities of Ukraine: Kyiv, Dnipro, Odesa, Kharkiv, Lviv.

Advantages of outsourcing in Ukraine

It is fair to say that outsourcing itself already has a certain number of advantages that do not have a link to the country. By transferring the business processes of your company to another, you will receive the following performance indicators:

1) Savings. Outsourcing services will always be cheaper than hiring permanent employees. Also, you don’t need to rent/purchase premises, maintain an office, purchase equipment, etc.

2) Reducing risks. By signing an appropriate contract, your company can only control the actions of the contractor, thereby reducing the number of processes performed.

3) Saving time. The outsourcer company, as a rule, already has ready-made employees who will be able to start their duties the next day after signing the contract.

4) Quality. The narrow focus of outsourcing companies allows them to hone their skills in the area in which they specialize. Also, their employees are constantly being trained to keep up with modern trends.

5) Reducing the load. Reducing the number of tasks performed allows you not to be distracted by non-core processes that were accompanied by additional difficulties.

A huge plus is to highlight a huge number of universities throughout the whole country in which a large percentage is allocated to specialists in technical specialties. At the moment, Ukraine ranks third in the world in terms of the number of people who received higher education as well as second in the number of graduates with a master's degree in their specialty.

At the same time, among this incredible indicator, the number of IT specialists is also in a high 4th place in the world. Ukrainian developers are regular participants and prize-winners of world conferences in which more than 11 million participants from 50 countries.

For example, in 2013, as many as 56 participants from Ukraine won first place in various individual nominations such as graphics, software development, databases, and programming languages.

The future of outsourcing in Ukraine

The active development of the IT industry and outsourcing itself in the world gives the Ukrainian business specializing in these two areas, an opportunity to be confident in future prospects and to devote all efforts to their own improvement.

According to forecasts of IT Solutions company, in 2020, revenues in this business segment will grow by more than 30% which once again proves that foreign partners are ready to cooperate with Ukrainian companies and their number is growing every year.

Yes, today Ukraine has not yet achieved the same level when talking about volumes of China or India. However, from the point of view of providing the services themselves, Ukrainian specialists are in no way inferior to their foreign competitors. They still have the advantage of performing well at a fairly low cost.

Technology

How To Reduce Online Threats Using DevSecOps

By Ashutosh Jha → Saturday, October 3, 2020

As technology has become more abundant across the world in recent years, there has been a major change throughout our society. There are many ways that tech has changed the world in 2020, and the Internet and other technological advancements have helped to bolster the ways in which our society functions.

Tech has helped our society to grow in a myriad of ways, such as the increase in socialization through social media and much more. However, with all of the good that technology has done, one of the negative aspects has been the rise of cybercrime.

Cybercriminals have infiltrated many businesses, especially through the weaknesses in their software. Software often has the potential to let cybercrime in, as there are frequent bugs and leaks that hackers can break into. This is why it is crucial to protect your software before utilizing it during the development process.

Software development requires the use of DevSecOps, a system that helps to ensure that all of your company’s software is safe throughout the development process and that you will be able to reduce online threats. Learning about this system and how your company can utilize it to your advantage is crucial for building a safer business.

Mitigating Threats Through DevSecOps

Creating a top-quality cybersecurity program for your corporation is no simple task; however, by utilizing DevSecOps you can have greater safety protocols. DevSecOps will let you protect your assets and will ensure that your business is safe.

DevSecOps means development security operations, and although it has similarities with DevOps, it primarily focuses on security throughout the software development process. DevSecOps still ensures that your company can put on high-quality software in a short period of time, but by prioritizing security while developing software, you will have the ability to protect all of your company’s assets from hackers who infiltrate companies through technical leaks and other bugs.

Understanding the importance of DevSecops is essential when considering it for your development process.

DevSecOps in Your Company

While there are many types of cybersecurity protocols that you should be utilizing throughout various aspects of your business, having DevSecOps be a part of your business’ development process is critical for building security.

DevSecOps has a variety of functions for ensuring safety throughout the development process, and the main functionality is to ensure that all technical leaks, leaked credentials, and erroneous configurations are taken care of. If you do not handle these issues throughout your development process, your company will be under constant threat and will not be prepared for any other security issues.

Learning about the importance of DevSecOps throughout your company's development process and understanding how your enterprise will benefit from this system is crucial for your business’ continued success with the ever-present threat of hackers.

Final Thoughts

When developing software for your business, you need to ensure that it is safe from the threat of hackers. Utilizing DevSecOps is essential for your business and will ensure that your company can thrive in the dangerous online world.

IT

6 Ways to Improve Out of Hours Business Support

By Ashutosh Jha → Thursday, April 4, 2019

Your business hours may finish, but your customers need you at their side all the time. So, you have no choice but to entertain their demands. Following, we are going to show you how you can improve your after-hour customer support. It will be a major win for your business.

This becomes even more critical if you’re working from the location other than the client location. For example, if your client is from the UK and you’re providing support from the USA. In that case, the majority of your working hours will be a non-working hour for your client and vice-versa.

In that case, to ensure the proper working and tackling the issues of your client, you have to improve out of hours business support. This will ensure no matter what time zone you both work, there will be always proper support of client business.

6 Ways to improve out of hours business support

Considering all these, let’s talk about how to improve out of hours of business support for organizations. This will ensure the full satisfaction of your customers.

1. Get an Emergency Number

Knowing someone is available can apse your customer and let them hold over for the next day. You should know it only takes a minute to question whenever the perceived emergency is one, or you better wait and deal with the issue in your normal business hours.

That aside, if you show you are available every time, you show you care about your customers. This creates a positive image of your business and grows customer loyalty.

2. Mobile Support

Much of the work done today is completed remotely. In case you make some changes and have someone available through mobile app one evening a week, the customers will get help after hours. It’s important you tell your customers in advanced that this support is limited. This is just like the emergency option. The goal here is to make your customers realize that someone is available at least.

3. Canned Support Message and Links

You should know every out of hours call center is laced with such messages. A response from customer support telling the customer to go to a knowledge base is exhausting. But an after hour canned response which has useful links to asked questions is accepted. If the links don’t answer the question, then you should offer your customers the next level of support. It will help you retain them no matter the issue.

4. Pre-Recorded Tutorials

If you don’t have prerecorded tutorials, you are not offering value to your customers. The fact is, some questions are asked over again and again. Pre-recorded tutorials are one way to support customers after business hours.

So, you need to invest some money and creative effect and relevant how-to videos to walk people via troubleshooting. In the canned support message, you should offer detailed tutorials and walk people via the exact steps to solve an issue.

5. Customer Forum

You will need to create a customer forum where the existing user helps another pole with their questions. You will need to offer incentives incurring point system for a discount off a product. You can also send logo items once the customers reach a certain level.

Most users do like to help other people and are online after business hours. You can make them an unofficial part of your support team. You have to treat these people well as they play an important role in helping you with your out of our support need. These people help improve your customer experience.

6. Offline Chat

Chat is intended to be a live experience. This is where the client gets an immediate response from customer support. It can still be used as a tool for after hours. There are many options that let you deal with offline messages.

Wrapping it up!

These were all about how to improve out of hours of business support and ensure complete client satisfaction. This way, you can work without any issue of different time zone and also ensuring no stone is left while serving the client.

If you also support some client who is not in your time zone, please share your experience with us. For more similar business-related content, please check our business section.

Technology

5 Advantages Of Using Linux Over Windows For Your Business

By Ashutosh Jha → Sunday, March 31, 2019

Are you trying to figure out if Linux is a viable alternative to the Microsoft ecosystem?

Linux has already taken over a large amount of the business server market, but is it viable as a desktop alternative? With Linux in better shape than ever, there isn't a better time to try it out.

The numbers even become more interesting when you look at the popularity in the top ranking websites.

You are probably wondering what benefits switching to the underdog operating system can bring. This post was made to show you just that.

5 Advantages Of Using Linux Over Windows

Keep reading to learn the advantages of Linux over Windows and how it can help improve your business.

1. Save on Licensing Costs

Software costs a lot of money. Wouldn't it be great if there were free alternatives available?

With Linux, that is not only possible but encouraged. It is one of the greatest sources of free and open source software available today. The operating system itself is free.

How much is your business spending on Windows 10 licenses?

That isn't the only savings. Here are a few typical applications that will run your bill up.

Photo Editing

Adobe Photoshop is the defacto standard for graphics work. It isn't the only option available though.

GIMP is a full-featured editing application that has all the same features as Photoshop. The workflow will be different, but once learned you could accomplish anything in it that you could achieve in any editing software.

Word Documents and Spreadsheets

Microsoft Office and Windows are a common pairing. You won't get the desktop version of Office with Linux though. For that, you should check out Libre Office.

Libre Office is the Linux equivalent and contains the same suite of applications Microsoft Office provides.

2. Improve Your Office Security

Security is a concern with any business. This concern has a lot of companies looking for other options so they can keep their business safe from threats that would cost them money.

Windows is widespread, and that makes it the center of attention. Most of the viruses created explicitly target it.

For Linux users, it isn't as big of an issue. Most viruses and malware require you to execute .exe programs on your computer. Linux doesn't run these and can't install these programs.

Linux also is designed secure out of the box. Unless you configure it securely, Windows allows default users to do anything from the beginning. With the Linux security model, the default user is required to enter their password anytime something essential needs to happen.

This system makes securing a Linux system an easier task than a Windows computer.

3. Move Your Business to the Cloud

The days of desktop software dominating the market are dwindling.

Today, you can find replacements on the web for almost every desktop software available. Web-based software comes with some advantages.

With it, you aren't tied to your operating system since you only need a web browser to access the software. You can choose your environment, and location of choice to get your work done.

Here are some alternatives you can try for your business.

Office Suite

Microsoft Office is a staple in the business world, but it isn't the only player in the game.

Google has its office suite available called Google Docs. It is a web-based document suite that has close to all of the functions Office provides for word processing, spreadsheets, and creating presentation slides.

If you are set on Microsoft Office though, even Microsoft offers a web version of their software. No desktop software is required.

Cloud Storage

File servers have been a staple of businesses for a long time now. There is a problem with them though.

You need to be at the office to access them.

When you move to a cloud storage solution like Dropbox or Google Drive, you can access your files anywhere.

Privacy Concerns

Do you have security concerns? If you are in healthcare or another business with more privacy issues, then you have more laws and regulations to comply with.

With Linux, you can set up a private cloud server for people to use that you host onsite.

NextCloud is a piece of software that provides cloud capabilities hosted on your servers. Doing this allows you to secure your data based on whatever laws apply to you.

4. Make Your Desktops More Reliable

Isn't it a great feeling when you buy a new computer, get it home, and get it running without any problems?

The problem here is you are getting an out of the box store experience, and that doesn't typically last with a Windows workstation.

A properly configured Linux desktop will run for years.

5. More Out of the Box Hardware Support

There was a time where Linux had trouble supporting hardware. This hardware trouble is mostly not a concern anymore.

Linux out of the box supports more hardware than Windows does. It has this support because of the Linux kernel.

The Linux kernel is what makes everything tick under the hood. Windows has its own, but it does not include a lot of hardware support built in. It needs to go out and grab the software it needs.

The Linux kernel, on the other hand, has these drivers built in and supported from the beginning. It makes getting it up and running on a variety of hardware configurations less of a hassle than with Windows.

This support works excellent in conference settings where you may not know what to expect. Click here for more information about venues that you could be presenting in.

Advantages of Linux over Windows: Final Thoughts

Now that you see a lot of the advantages of Linux over Windows its time for you to make your choice. Do you make the jump and experiment with something new, or stick with what you have been doing?

There are enough potential upsides to give it serious thought. If you aren't ready to commit to a full workstation test yet, then put a copy of Linux on a USB drive and take it for a test run before committing to anything.

Are you looking for more business advice? Check out our business section for more great ideas you can use for your business.

IT

6 IT Consulting Business Development Tips

By Ashutosh Jha → Monday, March 18, 2019

Did you know there over 474,000 IT consulting businesses in the United States? Collectively, they employ over 2 million people and generate more than $400 billion in annual revenues.

Is your business one of those making a killing?

As technology advances and the demand for IT services continues to grow, it’s fair to assume every IT consulting business is turning good profits. However, this isn’t necessarily the case. There’s fierce competition for clients and the vast majority of the market is dominated by large firms.

Best IT Consulting Business Development Tips

Which brings us to the point of this article: Top IT Consulting Business Development Tips to Take Next Level.

Keep reading to learn more.

1. Offer a Wide Range of IT Consulting Services

IT is a vast field. There’s networks, cybersecurity, hardware, data management, cloud computing, business process automation, virtualization, and more.

If you want to take your consulting business to the next level, it’s crucial that you offer a wide range of services under one roof. Sure, specializing in a certain niche such as big data consulting, is an ideal way to build your authoritativeness, but then you’ll be locking out other opportunities.

Most companies that need IT consulting services don’t prefer working with multiple consultants. They’d rather hire one firm that offers several IT consulting services.

2. Focus on a Local Target Market

As a small IT consulting firm, it’s unlikely that you have the resources to pursue a national market. If you’re doing this, you’re setting up yourself for failure.

Leave the national and global markets to the large consulting firms and focus on a local market. This ensures your competitors are companies you can go toe-to-toe with, and depending on your innovativeness, you can beat them.

Another benefit of targeting a local market is it becomes easier to craft a laser-targeted marketing strategy. Local SEO, for instance, is highly effective when you have a clearly defined local target market.

3. Keep an Eye on Your Online Reputation

What are people saying about your brand on the web?

Considering that 84 percent of people trust online reviews as much as friends, you have to safeguard your IT consulting firm’s online reputation.

Of course, offering quality services and building positive relationships with your clients is the best way to ensure your business gets positive reviews. However, you can’t make everyone happy.

Some clients will leave negative reviews and complaints on various online platforms. It’s your just to keep tabs on such reviews and take steps to mitigate the damage.

Ultimately, businesses that maintain a positive online reputation have the best chance of growing to the next level.

4. Attend Industry Conferences

Every year, there are tens of IT consulting conferences and events across the country.

Sending some of your staff to these events costs money, but the benefits are worth it. Your company will gain visibility and build valuable connections with other industry players.

Plus, nothing stops you from organizing your own conference! It’s a good way to showcase your expertise and enhance your chances of dominating the local market.

Growing an IT Consulting Business Made Easy

The IT consulting market is on a growth track, which means there are enough opportunities for business owners to cash in on the growth and take their business to the next level.

But you can’t rely on market conditions alone. With the tips fleshed out above, you’re now in a better position to position your firm for growth.

Keep tabs on our blog for more business insights.

IT

IT Policies Every Small Business Should Have and Implement

By Ashutosh Jha → Saturday, March 2, 2019

IT spending is on the rise among small business owners. Small businesses account for 40% of all IT spending.

It makes sense, considering that 66% of small businesses would fail without wireless technology. 77% of small businesses use social media to generate sales and qualified leads, as well.

No matter what type of business you're running, you're not likely to get very far if you don't incorporate technology is some way, shape, or form.

Here are the IT policies that every small business owner should implement, if you haven't already.

IT Policies For Small Business

The days of just winging IT policies are quickly receding in the rear view mirror. Technology is too important to a business' success. The fallout can be too severe, as well.

Here are the types of IT policies you should be using to make the most of your technology.

#1 Acceptable Usage of Technology

If your business involves tech in any way - and what business doesn't? - you need to decide what is acceptable usage of company technology when employees are on the clock.

You need to decide what employees can use company computers and wireless device for. If they're using computer technology for research, you need to make sure your employees are actually doing what they're supposed to.

While you don't need to be a dictator, you should at least make sure your employees are limiting their personal activities when they're on the clock. While checking email once or twice a day isn't that big of a deal, spending hours on Facebook or Twitter definitely is.

#2 Security

Considering what a big deal security breaches have been in recent years, your business definitely needs to have a security policy in place. You need to specify who has access to your private network and data storage. You also need to restrict who has access to your passwords, permissions, and authorization policies.

You'll want to have a good anti-virus in place, as well. If you think having your personal computer infected is a pain, you don't want to see what a virus can do to an entire network! Here are some of the top antivirus you can use for the same-

#3 Personal Devices

While this is somewhat covered under the 'acceptable usage' category, you'll want to specify what technology your employees are allowed to use while they're on the clock. Not only are personal devices bad for productivity, they're also a security risk. Many major corporations issue their employees dedicated phones and laptops, for this reason.

You might want to consider limiting your employees' usage of personal devices to breaks or before and after work. This will make your workplace more secure, while also ensuring your employees are doing what they're supposed to be doing while they're on the clock.

If you want to know more about what IT policies your business should have, you can learn more here.

Want To Learn More Business Tricks?

There's never been a better time to own your own business. Technology has leveled the playing field, allowing small businesses to compete against Fortune 500 giants.

There's nothing more satisfying than building your own business or brand and succeeding. Whether you're looking for information on IT policies or for SEO secrets, we bring you everything you need to thrive in today's economy!

Software

Top Pros and Cons of Virtualization

By Ashutosh Jha → Sunday, February 17, 2019

An estimated 85% or more or organizations use virtualization at some level. That level of adoption means that if you don't use virtualization, you must start soon.

If you're just starting a business, you might find yourself scratching your head. Maybe you'd ask something like, "What is virtualization?"

In essence, virtualization is when software mimics the functions of a piece of hardware. A common example is when you run both a Windows and Linux operating system on your computer. Your computer basically pretends that one of the operating systems has its own hardware.

As with most tech advances, there are many pros and cons of virtualization. Let's jump in and look at some of the big benefits and pitfalls.

6 Top pros and cons of virtualization

Let's start top pros and cons of virtualization which will help you understand the virtualization process better.

Pro #1: Server Consolidation

In the early days, it was a basic truth that businesses rarely got full use of their servers computing power. Even though the raw computing power existed, the basic software setup ran one instance of an operating system. That meant expanding your capacities meant more servers.

Virtualization throws that model out the window. Since you can run multiple operating systems on the same physical server, you can get lots of virtual servers.

That lets you take advantage of all that raw computing power. It also means you can consolidate a lot of operations onto a few servers.

Pro #2: Improved Productivity

As lean methods trickle down into basic business thinking, productivity becomes a big concern. One big tenet of lean thinking is the elimination of waste. One area of potential waste is employee time.

Virtualization can help with that problem. Let's say you fly someone out to California for a business meeting. The potential client asks about your current stock and whether you can provide X units by a given date.

With virtualization, your employee can log into your system from their laptop and access that data in real-time. They can run a virtual desktop right in the meeting.

No wasted time making calls after the meeting. No shooting off an email from their phone and waiting for a response..

The same applies to those working at home.

Pro #3: Long-Term Cost Reduction

Business and enterprise-grade server equipment isn't cheap. A rack full of servers can represent tens of thousands of dollars in hardware investment. That's before you even consider software licenses.

Then, you must consider replacement costs. While no absolute rule exists, most businesses work on a 3-year to 5-year replacement cycle.

So, you don't shell out tens of thousands once. You shell out that much every few years.

The server consolidation you get from virtualization makes this much less painful. Replacing three high-end servers will cost you quite a bit, but nothing compared with replacing 10 or 15 high-end servers.

You also save in less obvious ways. Say you reduce your total servers by 60%. That's 60% less hardware your IT people must provide maintenance on.

All of that time they don't spend on physical maintenance is time they spend on other -- potentially more profitable -- work.

Con #1: Short-Term Costs

The long-term cost saving is not a mirage. You will almost certainly save big if you run a lot of servers now. The short-term costs may prove a different story.

While virtualization is something of a norm these days, not every server offers native support for it.

For example, let's say your servers are all on the last year of a five-year replacement cycle. You might discover that none of your current equipment will work for virtualization.

Even if you can consolidate down to fewer servers, you must replace them now. You may also end up shelling out for new software licenses that cover virtualization.

A related bit of bad news is that not all software will work with virtualization. That can leave you in a position where you must replace an application with one that will work. Alternatively, it can mean running a separate server for just one or two applications you can't live without in your business.

Con #2: Learning Curve

A virtual server, the software that controls it, and the digital environment it lives in may prove new to your IT team. After all, you probably didn't hire on virtualization skills if you didn't use it before now.

That means one of two things. One option is that you hire people with the right skills. That means a recruitment and interview process in a time of fierce competition for IT pros.

The other option is that your current team must get up to speed on the infrastructure before you can really take advantage of virtualization. Learning new skills takes time and there's no perfection the first time out.

For example, Citrix storefront customization is a relatively easy task for someone who knows how it's done. For someone who's never seen or heard of Citrix before, the first run at customization can prove slow and error-prone.

Con #3: Virtual Server Sprawl

Virtualization can eliminate physical server sprawl and create virtual server sprawl. Once your IT team is up to speed on the software, they'll find deploying a new virtual server is quite simple.

It's simple enough that they can start creating virtual servers all the time whether it's warranted or not. This can create a different kind of inefficiency. All those virtual servers soak up the resources of the physical hardware without providing a lot of benefits.

Think of it like opening up a dozen programs on your computer, even though you only really need two of them. All those open programs slow things down because they're eating resources like processor time and memory.

Parting Thoughts on the Pros and Cons of Virtualization

When you consider the pros and cons of virtualization, the benefits generally outweigh the pitfalls. Here is the summary of the pros and cons of virtualization.

You maintain fewer servers, which gives you a lot of knock-on benefits. There is less physical maintenance, lower cooling bills, and less electricity usage. You also get improved productivity and lower long-term costs.

The pitfalls are typically short-term problems, such as hardware upgrades and licensing, training, and server sprawl.

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