Understanding the Deployment Options for&

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Here are some questions to ask prospective on-demand vendors:
• Is my data hosted at a Tier 1 facility with full security protocols?
• How often is my data backed up? How long are the backups stored? Is there a charge for
data backups?
• What are my rights in terms of full access to my data? How long will it take to receive requested data?
• What is the provider’s responsibility to inform me of downtime and maintenance prior to the
system’s going down?

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4. Availability of internal IT resources
The availability of internal IT resources is a key factor to consider when selecting a potential business
management solution. Initial project rollout and ongoing support and administration will require IT expertise,
sourced internally or externally. Your choice of deployment model should reflect the availability of
in-house IT staff.

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Implementation and infrastructure
In order to optimize the return on your investment, your new business management system must be
capable of being deployed quickly and easily. As such, customers should be up and running in days and
weeks rather than months. Shorter implementation timeframes equate to lower project costs and fewer
project risks. On-demand deployments remove the need to install software locally or carry out hardware
and software installation and configuration in-house. On-demand, therefore, is particularly suited to
organizations with limited internal IT resources. On-premise deployments require the customer to incur the
costs of purchasing, configuring, and maintaining an internal technology infrastructure, although, many on-premise systems are able to fit into the already existing environment, which helps to defray some of the
initial investment. When choosing an on-premise vendor, look for one that supports technology already in
place on site. Some vendors offer choices in terms of operating systems and databases that they support.

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Ease of ongoing support and administration
Regardless of whether your solution is deployed on-demand or on-premise, you should ensure that it
delivers adequate performance and availability to meet your users’ needs. Day-to-day activities, such
as provisioning new users, importing data, writing reports, or implementing upgrades, can equate to a
significant increase in IT workload over the lifetime of the application. Moreover, when an issue arises, there
should be a clearly defined support structure in place that provides issue resolution on a timely basis.
Ongoing administration can represent a sizeable burden for companies deploying an on-premise solution for
the first time, particularly in the case of SMBs, which generally operate with limited IT resources

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On-demand represents an attractive proposition for these companies. On-demand solutions, however, are
entirely reliant on external resources for support queries. Companies considering on-demand solutions,
therefore, should carry out a detailed review of the vendor’s support services and clearly understand service
levels for: (1) scheduled availability, (2) case response times, and (3) application upgrade rollouts. Customer
reference calls should be used in the evaluation of any potential service provider’s support provision.
One of the benefits of the SaaS model is the fact that customers are able to stay current with the most upto-
date version of the software at no additional cost–this cost is factored into the monthly subscription fee.
While this may work for some customers, automated system upgrades cause disruptions and may require
changes in the way work is conducted, necessitating additional training. Essentially, the customers are
forced to take the new version whether they want to or not. On-premise systems allow for such upgrades to
be deployed according to the customer’s schedule. The Hosted model provides the best of both worlds–nocharge
updates and upgrades deployed when convenient for the customer.

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Keep in mind that the fact that a solution is delivered on-demand does not preclude the need to retain
IT resources for enhancements and system administration. Customization and integration requirements,
for example, can have a significant impact on the TCO for both on-demand and on-premise solutions.
These costs are generally factored into the analysis of on-premise solutions because third-party resource
requirements are integral to this deployment type. In the case of on-demand, however, these costs are
frequently overlooked because of the “plug and play” perception surrounding this deployment type.

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5. Vendor reputation and support ecosystem
A final important consideration is the actual vendor that you will be partnering with. The vendor’s reputation
can give you an idea of the experience you will have and should be researched. And the vendor’s ability to
support you directly and with the assistance of certified local business partners should be factored in.

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Vendor reputation
Of course, before entering into a relationship with a vendor, one should consider the vendor’s
reputation. Vendors threatened with class-action lawsuits, with numerous unresolved complaints,
and considered a “nightmare” to deal with should be approached with caution. Customer retention
is a good indicator of customer satisfaction. Find out if your prospective vendors are hanging on to
their customers. And ask to speak with current and past customers. Be aware of questionable pricing
tactics, like when vendors seemingly offer a solution at one price but the actual costs are much higher.
Or when subscription prices start to rise after you are “locked in” and where difficulties in regaining your
data potentially block your ability to leave the relationship. Be certain that your on-demand vendor will
not turn off your system for some perceived violation of the terms-of-service agreement. A quick search
of the Internet is a good starting place for your research into vendors’ reputations; however, be aware
of the source of any comments and the motivation of the individuals commenting.

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Conclusion
When selecting a business management solution, deployment type is an important choice, but it
should be made in the context of a broader variety of considerations. Companies should be mindful
of the expected lifespan of a prospective business management solution and ensure that their
requirements will be met across a variety of criteria, including: functionality, cost, ease of maintenance,
ability to customize, ability to integrate, and ability to earn a return on the investment. Both on-demand
and on-premise deployments have their own particular benefits and drawbacks. Some manifest
themselves in the near term while others come into play at a later stage in the solution life cycle.
While this paper has discussed the broad spectrum of business and technology considerations that
impact deployment choice, a company cannot realistically be expected to make a definitive deployment
decision up front given the wide variety of future variables. Partnering with a vendor that provides
multiple deployment options and the freedom to move to a different model in the future if needs
change, therefore, is a distinct advantage