Today, I read an article in Supply Chain Digest by Dan Gilmore: Calculating the Costs of On-Demand vs Traditional Supply Chain Software. Dan describes traditional on-premise application hosting models versus cloud models, and everything in between.
When I was in my 20's, I was what people call today a "server hugger". During the week, I managed an IBM 3081 mainframe at British Telecom. On Sunday's I worked at a fashion retailer as a member of the computer team. We used hand-held bar-code scanners to tally-up what we sold over the week for our management reports. I am the guy on the right in the picture below, which shows the computer team huging our DEC PDP-11:
During my years at CA Technologies, I learned that enterprise IT teams spend 75% of their resources maintaining existing systems. This leaves very little resource for new initiatives such as supporting development of new markets, improving competitiveness and increasing customer retention, all of which increase profitability.
Today, I am a keen supporter of what Dan describes as vendor hosted and managed applications. My server hugging days are most certainly over.