Is the Cloud Cheaper Than On-site Servers?

Is the Cloud Cheaper Than On-site Servers?

Most companies, after looking briefly in to cloud computing, realize quickly that utilizing the cloud in your business can be very beneficial.  Security, ease of scalability, disaster recovery, accessibility, and reliability, are only a few of the many advantages, but is the cloud cheaper than on-site servers as well?

Less Electricity Consumption

According to ZDNet, the average server cost is $731.941 per year, just in electricity.  That does not take in to account the HVAC needed to maintain the server. It also does that include the power needed for the UPS or other accessories needed such as backup systems, monitors, and KVM switches.

The Human Capital Shift

A fear when moving to the cloud is downsizing your I.T. staff.  While there can be positives in reducing salaries, benefits, and training costs, many companies find it in their best interest to re-purpose or refocus their I.T. staff.  They can use their valuable time to work on projects and tasks that help the bottom line and overall growth of the company, instead of maintaining expensive server hardware. This alone can make moving to the cloud a cheaper option that on-site server solutions.

No Money Down Means Growing Your Business

Not having to pay upfront for a physical server means funding and growing other aspects of your business.   With a cloud solution, you never have to worry about a server becoming old or obsolete.  Your cloud provider will take care of maintaining, licensing, and upgrading costs to make managing your company’s infrastructure inexpensive and worry free.

Planning for Disasters and the What if Scenarios

What happens when your own on-premises servers go down or fail?  Do you have a spare of every computer component?  Hopefully you’ve invested in and regularly tested a backup solution, but that’s another capital expense. What about a disaster recovery plan to maintain business continuity?  Rather than having to invest heavily in backup systems that are known for failing, or hiring a company to formulate and plan for disaster recovery for worst case scenarios, rely on cloud providers to maintain the highest possible up-times.  A fully managed cloud provider, like Silverline Solutions, offers a financially backed 99.999% up-time guarantee.

So, Is The Cloud Cheaper Than On-site Servers?

In most cases…Yes! After all the hidden costs which directly effect your bottom line, such as, electricity, accessories, management, software licensing, hardware, disaster recovery, backup solutions, and even the cost of the loss of cash for the upfront expenditure, in most cases the cloud is a much cheaper and easier infrastructure solution.  These are only some of the ways your company can improve your I.T. business processes while getting a lower Total Cost of Ownership than traditional on-site infrastructures.

Would you like to see your own personalized TCO (Total Cost of Ownership) calculations of on-site versus cloud solution?

What is the Total Cost of Ownership for your IT Infrastructure?

Ryan Hall
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