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30 Sep 2020

Today's Hidden Costs & Risks of Using Monolithic Systems

Research shows that 90% of companies around the world use monolithic systems and the reality is, they are running on borrowed time.

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Research shows that 90% of companies around the world use monolithic database systems.

The reality is, monolithic systems are living on borrowed time. They have outlived their purpose and must be done away with.

Using monolithic systems like physical servers and virtual machines may seem harmless at the outset. But in the long run, they can have a devastating impact on the success and longevity of your company.

How physical servers and virtual machines impact your organization

Physical infrastructure can drain the company kitty

Investing in servers is a complicated affair. You not only need to think about the costs of the physical investment – the hardware and software that power the server - but you also need to consider the cost of potential downtime.

The average cost of the hardware lies between $3,000 & $5,000. Next is the software, which can cost as high as $7500 annually, especially if they’re using a proprietary license.

Then there is the cost of installing a server, which can fall anywhere between $50/-hour and $200/- hour. This depends on the company hired and the size of the project. Once installed, these servers need to be maintained regularly, and this can cost about $100 per month.

If your servers crash, the repairs can cost a few thousand dollars. Multiple crashes in the same financial year can be devastating for your company’s ROI.

Apart from the massive expenses, there is the lost business opportunity that you can’t regain once the servers are back in working order. Additionally, if your data isn’t backed up, you lose everything in a matter of minutes.

Too easy to mis-configure

Research shows that there’s a hacking attempt on the web every 39 seconds.

Virtual machines, in particular, are extremely susceptible to hacking. In May 2020, an illegal online marketplace called MagBo put up 43,000 hacked web servers and virtual machines on sale for cybercriminals to purchase. This speaks volumes about the security that these types of virtual servers possess.

But it’s not just virtual machines that suffer from lack of security. It’s very easy for someone to tailgate an employee at the workplace, gain access to server rooms, and then hack into the physical servers. Unless you’re supremely vigilant, absolutely anyone can get their hands on your sensitive information.

This type of hacking can lead to thousands (sometimes millions) of dollars in losses for companies.

They are inefficient and difficult to fix

Virtual machines are slower and more sluggish than physical servers. This can make your operations very inefficient. If you have multiple virtual machines, the output becomes highly unstable.

Physical servers can be complicated technologies to operate. Since there are so many hardware and software, it becomes difficult to pinpoint the problem. The time and effort taken to repair the serves can generate extensive expenses for you, increasing your operating expenses.

Should you go serverless?

The latest trend these days is going serverless.

Serverless computing is the process of moving all your servers to the cloud. Essentially, you partner with another company who runs physical and virtual machines of their own, but who charge you for the amount of server space you’ve utilized.

But, is serverless the right thing for you?

When deciding whether to go serverless or not, you need to consider the following criteria:

Cost savings

Depending on which provider you choose, and the amount of server space you utilize, the cost of shared serverless hosting can be as low as $2.75 and as high as $15 per month. This price includes hardware, software, and tech support. It’s extremely pocket-friendly and perfect for companies on a shoestring budget.

Even if you choose a private, dedicated hosting service, you may only have to pay on average $200-$300 per month. That’s significantly lesser than the cost of purchasing a server. Many providers even offer free invocations for new users during the trial period, making serverless a very profitable option for start-ups.

Plus, with serverless, you’re only charged when you use the server. However, you still need to pay for the upkeep of the physical servers and virtual machines, whether you use them or not.

In serverless computing, this upkeep and maintenance are taken over by the serverless provider, and your monthly payment covers the cost of server repairs & upgrades.

Ease of use

The Serverless system is managed by a third-party provider. You don’t need to build any complicated application stacks that are needed to support your business. You also don’t need to have the technical know-how to manage the servers. You can focus on your core business activity and let experts take care of your server needs.

When it’s time to scale, serverless is easier to deploy than your physical servers and virtual machines. You only need to inform the provider of your requirements and then pay-as-you-go for the server space you utilize.

On the other hand, monolithic systems can be really expensive and cumbersome to scale.

Security

Since serverless providers collaborate with so many companies, they are uniquely placed to understand the cybersecurity needs of their clients. They implement state-of-the-art security measures and provide robust data safety solutions like data encryption, 2FA, and more. Additionally, it’s very easy to implement measures like the least privilege and identity and access management in serverless. This will mitigate cyberattacks significantly.

Since they purchase these expensive security solutions for multiple clients, your serverless hosting provider benefits from economies of scale. They pass on the benefits to you in the form of the reduced package cost.

This type of cost savings is something that you can’t replicate in your own company, given the size of your business and the high cost of serverless security.

Back-end tech support

All serverless providers have a robust customer support team available 24*7. Should you face any issue with your servers, they can quickly identify the cause of the problem and fix it. This will reduce your downtime and prevent your losing out on business.

Because of their fast response, you will be able to respond faster to your customers. This will help you provide more value to your patrons. You won’t be restricted by technical issues and can go ahead and create new products/services.

Additionally, serverless providers have a very responsive and secure data back-up system, which is very useful in times of crashes/hacks. Now you never have to worry about loosing your important data. You can retrieve the data whenever you need, at no additional cost.

Going serverless can increase your company’s ROI

Serverless computing can be extremely profitable to companies of all sizes. They offer a degree of technological flexibility and freedom, which physical and virtual machines don’t. With their help, you can finally implement a digital transformation, digital engagement, and digital refresh projects that are currently impossible because of your monolithic systems. Considering all of their advantages, it is easy to see what a positive impact serverless systems can have on a company’s ROI.

So, actively invest in modernizing your databases, websites, software, and processes with our help. At [company name], we are experts in cloud computing, and we can help you get rid of your monolithic systems and adopt state-of-the-art business automation.

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