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Ask HN: How can I convince a business not to use their own servers?

9 pointsby jlhonoraabout 11 years ago
I run a B2B service (beetrack.in&#x2F;en) and we&#x27;re about to close a deal with a big company. The only thing that is left for closing the deal is that they want us to host the service in their own servers.<p>Their infrastructure is Windows with Oracle DBs. Ours is based on the Amazon stack (EC2, S3) with MySQL, Mongo, Redis, Memcached and friends.<p>Has anyone had a similar experience? What arguments do you use to to persuade them not to go the in-house hosted path?<p>Thank you very much in advance.

7 comments

andrewfabout 11 years ago
Other commenters have mentioned you should figure out <i>why</i> they want to do this, which is important. There could be actual, real legal requirements. There could be internal policies which are, or aren&#x27;t, flexible. It could just be an IT department protecting its fiefdom.<p>There are in-between options.<p>* Tell them that the software is designed to run on your own infrastructure, and while it could be delivered in a form they could run themselves, it would take a lot of extra time or money.<p>* Offer to run it yourself, but as an entirely separate instance just for them, without the intermingling of other customer data. You&#x27;d basically have a parallel setup inside a different AWS account.<p>* One big reason they might want to run it themselves, is that if your business goes down, they don&#x27;t experience immediate disruption. It&#x27;s not uncommon for a code escrow agreement to exist, which means that if your business becomes insolvent, the client gets a copy of your code, and the right to maintain it themselves. Combine this with a separate AWS account running their instance, and give them administrative and billing access to that AWS instance, and you may address their continuity concerns.<p>* Tell them that you don&#x27;t support the software on Windows, or Oracle, and that while they can run it on their own setup, they&#x27;ll have to do it on top of Linux. (If the IT department just tries to routinely absorb everything, this may give them pause)<p>* Deliver the software as a virtual applicance. (Require a particular hypervisor - for instance, Github is delivered as a VM that only runs on top of VirtualBox or VMWare. The former isn&#x27;t recommended for production use for performance reasons)
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relaunchedabout 11 years ago
Understand why they want what they want. It could be deeply entrenched in data governance &#x2F; IT Security. Once you understand why they want what they want, ask what the process would be for changing the policies &#x2F; recommendation?<p>It&#x27;s not about having a better solution, cloud v. internal servers. It&#x27;s about understanding the business requirements that make them recommend their servers. Then, understand how they make their decisions and see if you can use those channels to persuade them.
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clscottabout 11 years ago
Congrats!<p>You may have already lost this battle by allowing it to be an option. If you really didn&#x27;t want to do it you should have either:<p>0. Not offered it as an option 1. Priced the option off the table (i.e. 10-100 x the next closest option)<p>High pricing either makes the customer not consider the option or is enough money to totally make it worth your while.<p>Also:<p>1. Why do you not want to do it? 2. Why do they want to do it that way?<p>What alternatives have you laid on the table that satisfy the majority of their needs within their budgetary constraints?
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staunchabout 11 years ago
GitHub&#x27;s most expensive hosted plan is $200&#x2F;mo with unlimited users. Their self-hosted version is a minimum of $20k&#x2F;yr ($1666&#x2F;mo) for 20 users.<p>They also ship GitHub Enterprise as VM &quot;appliance&quot; image, which is probably the only sane way to package up a system that wasn&#x27;t originally designed to be run in many environments.
ohsnapabout 11 years ago
Find their biggest objection and their primary decision maker. You mentioned in a acomment security is a concern for them. Argue that using amazon is far more secure than their system (which is likely true). See aws compliance here: <a href="http://aws.amazon.com/compliance/" rel="nofollow">http:&#x2F;&#x2F;aws.amazon.com&#x2F;compliance&#x2F;</a>
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jf22about 11 years ago
Did you ask why they want to host on their servers?<p>Usually this is a security&#x2F;privacy concern.
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lazylizardabout 11 years ago
tell them the cost of your support package?