The Australian logistics industry has grown significantly over the past decade that not using cloud solutions or dedicated servers for operations has become unimaginable for many companies. However, this is only true for many progressive-thinking and technology-conscious enterprises. There are still many huge logistics companies that prefer having localised servers, or data computing and storage equipment within office premises. This choice can backfire and when the dust settles, all there is would be losses for the company.
The Pros of Local Servers
Many companies use logistics software to manage their daily operations. They also use it to collect and analyse data that is then presented to company leadership so they can determine the next steps to improving the performance of the organisation. It has been previously thought that having servers close or within the office will enable the faster access of data for this use. And from a certain standpoint, that could be true.
For instance, if instead of cloud solutions you chose to store your data on local servers, it means you can simply connect to the local network and download your data straight to your laptop or terminal. If connection is wired, you can access data even when your Internet connection encounters faults. And because servers are inside company premises, you can better ensure that they are not tampered with by third parties or unauthorised personnel. You can choose the type of servers and IT equipment you want to purchase. You can have trusted personnel manage these assets and that can give you peace of mind.
The Cons of Local Servers
The problem with getting local servers for your logistics software is this: they are very, very expensive. Even for enterprise class companies, setting up a data infrastructure inside the company premises requires a huge investment. Whether the budget will be approved by the finance department is one thing; actual construction of the facility is another. It should also be noted that spending on local mini data centres, sometimes called “closet servers”, does not stop with purchase. In fact buying is only the beginning.
Unlike with cloud solutions, you will need to maintain the hardware and software parcels of the infrastructure. This means commissioning and decommissioning equipment over a period of time. This also means you will need additional dedicated personnel who can monitor the facility 24 hours a day and 365 days a year. The facility needs to be up and running all the time so business can run as usual. And Oh, data centre technicians, engineers, and managers are not paid minimum wages. Expect to shell out a considerable amount for their salaries. After all, the business depends on servers and servers depend on them.
The Cloud as an Alternative
Many enterprises choose cloud solutions over local servers because this option is cheaper, more convenient, and it allows the organisation to focus on business operations. You won’t need to purchase your own servers. You won’t need to employ whole data centre team and shoulder the huge overhead. The hardware side is provided and supported by the software provider.
What this means for you is the business can focus on what brings the money in”logistics. The organisation will do what it does best instead of splitting its attention between running a logistics company and maintaining a data facility.
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