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Another cost in an implementation is the hardware If you want to reduce the upfront cost in an implementation, one approach is to go with a hosted solution Not only do you not have to worry about hardware costs and delivery dates, but you might also forego the need to hire a CNC resource Often, the hosting company will provide these services as part of their contract Not all managed services companies provide hosting as an option and/or as a solution Consequentially, you may end up needing to contract with more than one managed services provider or go with a shorter list of possible candidates that can provide both services In addition, if you take the path of looking at a wider solution set for managed services (including such things as network services, printers, and so on), then the list shrinks even further However, the advantages of having a single source for all of your managed services can often outweigh the limiting of the choices you have Finding a true partner for all of your needs can result in more discounts and a fuller relationship with the managed services provider With that in mind, however, hosting your system further limits your organization s access to system hardware, software, data, and IP You have to be willing to give up a bit more control in order to gain the additional benefits With a hosting solution, look for guaranteed uptime, access availability, and regular maintenance schedules You also need to plan on a continuing budget for the hosting services and be aware that the only way to get off this solution would be to find another hosting partner or actually buy the hardware yourself If you move to
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a different hosting partner, you need to be aware of the costs of getting your software and data from the prior host to load on to the new system in addition to the knowledge transfer necessary to adequately support your company s solutions Your limitations to immediate support are similar to those already noted in the Managed Services Technology Activities section discussed previously in this appendix Pricing is often arranged in a similar manner as well, with a monthly retainer for specific services and additional fees related to out-of-scope activities
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Some companies have begun using managed services for maintenance contracts as a substitute for the software vendor There are managed services providers that will gladly perform this type of activity, and some organizations have even begun specializing in maintenance contracts As a leader within your organization, you need to determine the benefits to doing this type of managed service Managed services for maintenance of EnterpriseOne have many of the same pros and cons as listed for outsourcing development as a whole And, similarly, we would argue that it is a case-by-case scenario justification process Smaller companies will benefit more from this kind of managed services than larger organizations because they don t need a full-time administration person in the first place Some of the disadvantages, however, include getting the work done when you need it done, getting the work done for the original price without a scope creep issue, and keeping knowledgeable resources on your account Often your provider will either lose the resources that really know your system (or EnterpriseOne for that matter), forcing a constant resource ramp-up time, or will reassign the really knowledgeable resource to another, more important client As an example, should you choose to use a managed services provider for your EnterpriseOne maintenance, you can anticipate saving at least half of your maintenance charges Although this may seem insignificant, the reality is this can mean hundreds of thousands of dollars saved every year So, you immediately ask yourself what the downside to managed services for your maintenance is, right Well, the companies that provide maintenance don t have access to the source code of EnterpriseOne If there is an issue associated with this source, there really is nothing that these organizations can do about it Additionally, when you pay these third-party organizations maintenance, you are no longer able to call Oracle support nor are you able to download patches and other fixes Where it appears that you had a huge savings, you might find that the savings really weren t as much as you anticipated and that the cost might have been substantially more on the other side Oracle charges you a penalty when you drop support and then pick it back up again Normally this penalty is equivalent to the cost of maintaining the support the entire time plus an additional administrative charge (example: support is $200,000 per year and you drop support for two years when you are ready to renew support,
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