A fictional company called Craft Digital is among the best software developers in South Africa with a workforce totaling 130 staff members. Out of the 130 staff members, 80 are on permanent employment while the rest are in temporary employment. Managing such a firm requires dedicated and instinctive individuals who spearhead innovation in the company. The company that began in the late 1990s has a clientele database comprising of financial institutions and has developed over 200 software packages implemented by a majority of financial institutions in South Africa. On an economic scale, the company tops its competitors in the region with an average annual financial gain of over $300,000 after all deductions inclusive of salaries and allowances. Recently the company ventured into the mobile applications development niche due to the advancement in technology. Additionally, its clientele has shifted to mobile banking thereby forcing the company to adopt the recent innovation.
As a technological company, the company relies heavily on the Internet and advanced software systems to ensure its clientele and products are well equipped and online 98% of the time. The firm makes use of Microsoft servers to conduct its internal processes such as communication, data storage, application hosting, and so forth. The company has opted to adopt iSCSI (Internet Small Computer System Interface) to enhance its network connectivity. iSCSI operates on top of the TCP (Transport Control Protocol) allowing SCSI (Small Computer System Interface) commands to be sent end-to-end over the Internet, LANs (Local Area Networks), and WANs (Wide Area Networks) (Chadalapaka, Satran, Meth, & Black, 2014). Moreover, iSCSI is one of the popular SAN (Storage Area Network) protocols due to its ease of use and management. The adoption of iSCSI has numerous advantages to the company that boosts its economic growth and productivity (Chawla, Narayanan, & Iyer, 2015). In the next section, I will look into the business and financial impacts of Internet Small Computer System Interface (iSCSI) at Craft Digital.
Reduction in Server Administration Staffing Expenses
Virtualization requires less personnel to manage and maintain it (Chaudhry, Malibiradar, Mathur, Chugh, & Harfoush, 2013, December). Implementing iSCSI at Craft Digital will assist in the reduction of the server administration staff members thereby reducing the costs the company incurs when remunerating the personnel. Additionally, those removed from the server administration staff can be assigned to various positions within the firm thereby increasing the productivity and profit of the business.
Reduction in Numbers of Existing Servers
iSCSI is more of a virtualization technology and requires less hardware to operate efficiently. When Craft Digital implements the technology, there will be no need for additional servers in the organization and those in excess will either be sold off or stored for future use. Reducing the number of operational servers in the firm reduces several expenses such as power consumption costs thereby affecting the business positively.
Avoidance of Server Replenishment Costs
iSCSI uses the current servers in the firm, therefore, avoiding server replenishment costs. Replenishment is the movement of inventory from the reserve locations to primary locations. At the reserve location, inventory is stored while when at the primary location inventory is shipped or picked. Replenishment ensures there is no inventory overstocking which may affect a business negatively.
Reducing Power and Cooling Required
iSCSI requires few servers in operation to perform its tasks. Unlike before, Craft Digital saves on power usage and the cooling expenses at the firm. The few the servers the lesser the power and cooling is required. A reduction in power and cooling has a positive impact on the business since there is a reduction in expenses, which translates to increased profit margins.
Reduced Costs of Operation
Implementing iSCSI at Craft Digital reduces the costs of operation greatly by increasing the manageability and storage utilization. Easing manageability enables the firm to focus on other vital areas of interest the company has, therefore, increasing the returns and profit margins. In the past, the allocation of numerous funds was to data storage and management of the systems at the firm and additional workforce. The trend led the company to financial losses that threatened its existence due to the rising competition from rival firms that had implemented iSCSI in their operations. Internet Small Computer System Interface has positive impacts on the financial status of a company when correctly implemented.
Eradication of Training Costs
Unlike other implementations such as Fibre Channel, iSCSI does not require advanced skills to implement. In the past, the company allocated numerous funds to training the staff members whenever a new technology came into existence. However, with the implementation of iSCSI, there is no need for the training session since the technology requires a familiarity with TCP/IP technology to implement. The personnel at the firm are conversant with TCP/IP technology hence installing, configuring, and managing the internal network will not require additional knowledge. The eradication of training costs are beneficial to the financial position of the firm since funds will be channeled to other areas requiring advancement or training thereby the technology is economical in nature.
Reduced Acquisition Costs
Since the company relied on the traditional TCP/IP technology, there will be no need of acquiring novel equipment to enhance the implementation of iSCSI technology. iSCSI uses the same network storage equipment from different vendors amalgamating them to form a system that works together seamlessly. Additionally, the technology offers advanced, better, and simple network storage solutions, which reduce the need for additional storage devices (Dey, Chakraborty, Naskar, & Misra, 2012, October). The technology works using the same gadgets the LAN was using in the company thereby lowering hardware acquisition and initial costs the company will incur. I would recommend organizations adopt iSCSI instead of the Fibre Channel since it is cheaper, better, and easy to implement, configure, and maintain.
Chadalapaka, M., Satran, J., Meth, K., & Black, D. (2014). Internet Small Computer System Interface (iSCSI) Protocol (Consolidated) (No. RFC 7143).
Chaudhry, M., Malibiradar, P., Mathur, V., Chugh, R., & Harfoush, K. (2013, December). Performance analysis of iSCSI with data center bridging suite of protocols. In 2013 High Capacity Optical Networks and Emerging/Enabling Technologies (pp. 179-183). IEEE.
Chawla, G., Narayanan, R., & Iyer, S. T. (2015). U.S. Patent No. 8,972,616. Washington, DC: U.S. Patent and Trademark Office.
Dey, S., Chakraborty, A., Naskar, S., & Misra, P. (2012, October). Smart city surveillance: Leveraging benefits of cloud data stores. In Local Computer Networks Workshops (LCN Workshops), 2012 IEEE 37th Conference on (pp. 868-876). IEEE.