A Testament to the Cloud – Qnectus Desktop and a Medium-Sized Mortgage Brokerage Firm
How Qnectus helped a mortgage brokerage firm enjoy greater productivity at a much lower cost
Over the last several years, the concept of cloud computing has simultaneously become more widely known, more fashionable, and more controversial. Of particular interest to many in the SMB market is an offering commonly referred to as hosted or virtual desktop (or, more formally, as Desktop-as-a-Service – DaaS). Proponents argue that hosted desktop yields a variety of both financial and non-financial benefits while critics largely pan hosted desktop as a waste of money. But, who is correct? In an effort to uncover a definitive answer, this case study focuses on the experiences of a medium-sized mortgage brokerage firm that had operations in Delaware, Pennsylvania, Maryland, New Jersey and Florida. The result: hosted desktop not only offers a host of non-financial benefits, but also can save firms upwards of 50% when it comes to total cost of ownership over time.
Several years ago, Qnectus’ predecessor succeeded in convincing a medium-sized mortgage brokerage firm to switch from a traditional IT environment to a cloud-based, hosted desktop environment. The non-financial benefits of the changeover are numerous and beyond debate: 99.99% uptime; enterprise-level firewall protection, encryption, and virus protection; unsurpassed flexibility (across both platforms and devices); managed applications and upgrades; simplified user provisioning; and 24/7/365 customer support. But, did these benefits come at a cost? Interestingly enough, they did not; in fact, the switch put the firm in a position from which to save upwards of 50% over thirty (30) months.
Between February 2007 and August 2009, Qnectus’ predecessor had maintained a traditional managed services contract with the client. The actual monthly expenditures of the client during this period are shown in blue in the graph below. As is readily apparent, the client experienced two major spikes, two minor spikes, and a constant monthly maintenance charge. In sum, these costs total nearly $270,000 over the period in question.
But, what would have the costs looked like had the client been utilizing Qnectus’ hosted desktop during the same time period (with adjustments made for user increases)? Less than 50% of the traditional contract.
When overlaid, the nature of the difference becomes quite obvious:
In August of 2009, the client switched over from a traditional managed IT contract to the hosted desktop. Until the client’s acquisition by a larger player in the mortgage brokerage industry, both the non-financial and the financial benefits of the hosted desktop were enjoyed.
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