subject: Oracle Hosting: Why A Third-party Service Provider Should Manage Your Oracle Application [print this page] Oracle hosting by third-party service providers has become an accepted business practice and has grown dramatically in popularity. Companies are finding they can no longer manage their Oracle environment at the same high levels as an outsourcing company. The move to an outsourcing model results in benefits that can dramatically affect a business operations.
Cost. In almost every outsourcing model, when partnering with the right service provider, companies will save money. Although you can benefit in numerous ways, cost savings is usually the primary reason for Oracle hosting by a third-party.
A service provider can achieve economies of scale a business just cant realize in-house. Because its their main business, outsourcing companies know how to most efficiently manage Oracle hosting while maintaining the highest performance levels.
Availability. Appropriate back-up systems and built-in redundancy is most likely cost-prohibitive for in-house operations. However, outsourcing companies maintain redundant infrastructures very cost effectively. They can re-route connections when necessary and guarantee system availability.
In addition, disaster recovery is often managed better in an Oracle hosting outsourced model. Service provider data center facilities are built to withstand disasters much better than most in-house operations. Back-up plans and redundancy strategies are extensive in experienced outsourcing operations. Re-establishment of the Oracle environment can be done with minimal downtime.
Data Loss. Industry research has shown the main causes of data loss are system malfunctions and human errors. In fact, a recent study found these causes to be 44 percent and 32 percent respectively. However, outsourcing Oracle hosting to a third-party minimizes these risks.
Outsourcing service providers use the latest technology and most advance equipment. In addition, they staff their data centers with experts with verifiable experience. This combination improves performance levels and virtually eliminates data loss risk. Should equipment malfunction, the service provider will have redundant capabilities and their expertise will allow them to get systems back online more quickly than what can normally be done with a companys in-house staff.
Plus, with IT staffs stretched to the max, human error becomes more probable. Inexperience exacerbates the problem and also contributes to making mistakes that result in data loss. Also, inadequate internal processes improperly managed put data at risk.
Expertise. In-house management of Oracle applications has definite limitations in most companies. Hiring adequate technical resources that can maintain your environment 24/7 is usually cost prohibitive. However, Oracle hosting by a service provider makes it easier to access multiple technical resources that have the depth of experience your in-house personnel probably dont have.
A service providers staff has been exposed to more Oracle issues and is usually better equipped to manage the applications. This experience equates to quick resolution of problems, greater availability, improved efficiency and lower costs.
In addition, greater expertise with Oracle hosting reduces the time to implement and upgrade applications. Complex configurations can cause in-house systems to be unavailable for long periods of time. However, skilled outsourcing providers can manage implementations and upgrades quickly and at lower costs.
Scalability. Companies needs change over time and their Oracle environment will need to keep pace with current requirements. With Oracle hosting by a third-party, your company can grow without worrying about additional capital expenditures or staffing. An outsourcing model allows for you to easily and quickly add equipment. The responsibility for providing adequate resources transfers to the outsourcing company.
Oracle hosting by a third-party outsourcing company results in numerous benefits. Usually a strong business case can be made for the outsourcing decision, especially when factoring in cost and performance metrics. Comparing in-house capabilities to service provider qualifications, along with what it would cost a company to achieve the same performance levels easily justifies the outsourcing decision.
