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April 23, 2010

Appirio Guarantees $1 Million Savings with its Cloud Computing Solution

By Raja Singh Chaudhary, TMCnet Contributor


Appirio, a provider of cloud solutions that offers products and professional services for enabling enterprises to accelerate their adoption of cloud technologies, has announced to introduce a new program, under which the qualified companies that cloudsource their entire IT infrastructure to Appirio and the public cloud will make a guaranteed savings of at least $1 million in annual total cost of ownership or 'TCO', or the company will make up the difference for them.

Initially, the company has decided to run the program for the next six months, which will boost the confidence of the customers that they need to get out of the business of running data centers. It will also encourage them to leverage the cost and innovation benefits enabled by cloud computing to a greater extent.

As more and more companies are already moving their applications, platforms and infrastructure to the public cloud, enterprise cloud adoption has been seeing a high rise. The enterprises find the solutions model helpful in saving their overall costs and also in being able to react faster, enter new markets or just work more productively. According to an assumption made by Gartner (News - Alert), a research and analysis firm, by the year 2010, approximately 20 percent of businesses will own no Information Technology or 'IT' assets.

Appirio will provide its well known expertise, services and technology to the companies who are looking to cloudsource some or all of their IT processes in order to make it happen with less risk for them. Before establishing a cloudsourcing relationship, the company first understands the current customer IT environment, and them develops a business-case driven cloud roadmap that articulates areas of savings across software, hardware, personnel and other IT cost centers. Further, it leverages its proven cloud migration, cloud development and cloud management services in seamless integration with specialized back-end technology that can connect leading cloud platforms.

According to Ryan Nichols, Vice President of Cloudsourcing & Cloud Strategy at Appirio, the company is putting its money where its mouth is. Nichols noted that companies are already moving more of their business to the public cloud, but Appirio thinks this guarantee will encourage companies to take their cloud adoption to the next level as running a company's business 100 percent in the cloud is different than piecemeal cloud adoption. Appirio's experience moving nearly 200 enterprises to the cloud, and its own experience operating as a serverless enterprise, gives it the confidence that a million dollars in savings is just the tip of the iceberg, Nichols added.

In July 2009, Salesforce.com (News - Alert) and Appirio announced that ServoTerra had deployed an asset planning application and Business To Business or 'B2B' trading exchange built exclusively on the former's Force.com platform and by leveraging Appirio's cloud computing capability.


Raja Singh Chaudhary is a contributing editor for TMCnet. To read more of Raja's articles, please visit his columnist page.

Edited by Patrick Barnard