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Research Firm Validates Hosted IT Infrastructure From The Planet Reduces IT Costs by 51 Percent

June 2, 2009 by  

The PlanetWebmaster ToolsHOUSTON – The Planet, the global leader in IT hosting, today announced the availability of a new report from market research firm Stratecast, a division of Frost & Sullivan. The report supplies conclusive evidence that The Planet’s enterprise-grade hosted IT infrastructure reduces operating costs for small- and medium-sized businesses (SMBs) by 51 percent over a three-year period. According to the white paper, hosting places increased control into the hands of SMBs, in addition to offering greater technical and business flexibility. For these reasons, Stratecast predicts that hosted infrastructure will become a preferred method for supporting the IT needs of these companies.

Titled “Escaping the IT Investment Trap: How Hosting Delivers Higher Performance at Half the Cost,” the report weighs the three-year expenditures of an in-house, “do it yourself” (DIY) approach, versus subscribing to hosted IT infrastructure services from The Planet. The study evaluates the total cost of operation based on the price of servers, storage devices and other hardware; software licenses; security; lease premiums; dedicated Internet access; facility costs; power; and in-house personnel. In the study, a customer who would have spent $226,000 on a DIY approach by comparison would have spent $111,093 to implement a hosted IT infrastructure solution.

“Hosting provides our company with a broad range of benefits, all of which were key to our decision to move from our own in-house implementation to The Planet’s IT infrastructure,” said Brian Gaubert, Chief Executive Officer for Houston-based ContentActive. “The cost savings mirror the report’s finding, particularly with the growth trajectory we’ve experienced over the past three years. Today, I don’t have to worry about adding new servers when we win new business since we can immediately add capabilities with a single phone call. The support is phenomenal as well. The most important benefit for my company is that I can focus on growing my business and providing services to my clients.”

According to Lynda Stadtmueller, Senior Research Analyst with Stratecast, her evaluation points to a broad range of reasons why both large and small companies are moving to hosted IT infrastructure: “Even beyond the fact that companies aren’t required to invest in the core infrastructure, hosting companies like The Planet offer expertise that’s hard to find and retain. From data center management, to security and network operations, to name just a few, it’s ineffective and cost-prohibitive for most companies to makes these investments on their own. Hosting offers the latest technologies, combined with scalability and flexibility, enabling companies to keep pace with their business evolution.”

“In today’s difficult economic climate, SMBs continue to evaluate options that will reduce operational costs and improve their competitiveness,” said Steve Kahan, vice president for marketing and product management at The Planet. “The Planet offers a robust IT infrastructure that allows SMBs to compete on an even playing field with larger competitors by leveraging our SAS 70 Type II-audited data centers, redundant network and broad spectrum of managed services. This new Stratecast paper validates the value customers derive by improving their IT performance, while reducing capital expenditures.”

Stratecast White Paper Highlights
The report offers significant insight into how a hosted IT infrastructure expands the IT capabilities of SMBs:

Delivers Higher Performance at Half the Cost: Subscribers eliminate the requirements to purchase hardware, software, security, power, bandwidth, expanded IT staff and other related requirements, which provides a more predictable solution than the DIY approach.

Provides More Control to SMBs: Servers reside in a highly secure data center environment, where security and Service Level Agreements provide assurances of availability. Customers can focus on building their applications on this platform to expand their businesses and customer-facing services.

Enables Increased Technical & Business Flexibility: Companies can quickly scale their IT infrastructures as they grow, backed by technical expertise, world-class data centers and an enterprise-level network, all of which are simply unaffordable with a DIY approach.

Improves SMB Competitive Effectiveness: SMBs gain access to high-performance technologies through IT hosting, without tapping into valuable capital funds that are better utilized on customer-facing solutions and strategic business goals.

To download the complete Stratecast white paper, please visit www.theplanet.com/Hosting-Reduces-Costs/.

About The Planet
The Planet is the leading provider of On Demand IT Infrastructure solutions, hosting more than 20,000 small- and medium-size businesses and 17.1 million Web sites worldwide. Customers have the power to choose from the broadest range of hosting solutions in the industry, from dedicated servers, Managed Dedicated Servers, Northstar Managed Hosting™ and data center colocation, all backed by 24x7x365 support. With the best choice of servers, software tools and world-class service, backed by state-of-the-art data centers and an enterprise-class network, The Planet turns IT into a powerful competitive advantage that enables customers to grow their businesses. For additional information, visit www.theplanet.com.

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