Appirio making $1 million cloud savings promise

If customers who use its services to migrate don't save at least $1 million annually, it will make up the difference

Appirio launched a new offer Thursday, pledging that if customers who use its "cloudsourcing" services to migrate entirely to public cloud applications and technologies don't save at least US$1 million per year, it will make up the difference.

There are some ground rules. To be eligible, companies must be currently spending at least $5 million per year and have 500 or more employees, said Ryan Nichols, vice president of cloudsourcing and cloud strategy. Appirio expects most interested businesses will fall in the 500 to 5,000 employee range, he added.

In addition, Appirio is not promising instant results. Customers would work on a phased road map plan with Appirio's consultants, and the process of switching over to cloud applications and infrastructure could take two or three years.

Once that is complete, savings will be measured over the following year, Nichols said.

Repeating oft-cited arguments in favor of cloud computing, Nichols said that when customers make the switch, "entire categories of spend drop away," such as the costs of maintaining servers. He also noted a recent Gartner prediction that 20 percent of companies won't own any IT assets by 2012.

Customers who consider Appirio's offer have to be sure there is enough parity between on-premises and SaaS (software as a service) applications, said Ray Wang, partner with Altimeter Group. "If you're functionally close, say within 80 percent, the short answer is probably yes, it's cheaper to run."

However, many SaaS offerings are less than five years old and aren't as functionally mature as many on-premises apps, Wang said.

Many customers don't require all the functionality an application desires, but others may have a wide range of complex business processes that would make a move to SaaS harder.

Nichols acknowledged the point.

There's "a very real need for on-premises software" among enterprises with intricate supply chains or warehousing operations, he said. "This isn’t going to be a fit for every company."

The offer is valid for the next six months, according to Appirio.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cloud computingAppirio

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?