Cloud Computing

Uncovered: Is Cloud Really Cheaper?

Today, there are few questions bigger in IT then whether or not cloud is really cheaper. One benefit of cloud often touted is the reduced cost. But as a good decision maker you need some hard facts.

I like to deal with hard facts too, when it comes down to investing in something for my business I often pull up a spreadsheet, drop in some numbers, formulae and expert predictions and see what it uncovers.

When it comes to IT, we have done this for clients too.  They find the results informative and it helps them to make better decisions. If you are interested in this sort of insight for your company, check out our Professional IT Consulting.

Anyway, let’s do this for cloud and see if it is really cheaper. I’ll focus on a single situation which is likely to apply to many organisations. This comparison shows services which are very similar, and the only difference is the cloud. I have also made these calculations as transparent as possible without getting too much into the nitty gritty of detailed TCO.

The situation we’ll examine is an on-site managed server versus a core cloud infrastructure service and support, such as Softpro’s Cloud Suite.

On Site Server

This is for a standard server which would be able to serve a company with approximately 10 staff with average requirements. This server would give some file storage, and provide Active Directory identity and domain management. Because of current software licensing models, emails for an organisation with 10 staff would be hosted in Microsoft’s Office 365 with identity integration with the server. There would also be 10 on-site staff desktops or laptops connected to the server which would also be supported.

ServerCosts

Cloud Services

In this situation cloud services would be purchased to an equivalent level which would provide the same core services that the on-site server would provide. The cloud offering would include file storage and emails as well as identity management and device monitoring. Again, emails would be hosted in Microsoft’s Office 365 and there would be identity integration with other cloud services. There would also be Extended Cloud Security for 10 staff to cover their desktops, laptops, tablets and other mobile devices.

CloudCosts

Summary

When you compare the same services and support for both situations, using cloud comes out as a clear winner in terms of cost. The other benefit that cloud provides is the flexibility of being able to purchase only the services you require which could lead to additional savings.

We would be happy to discuss specific situations with you and see if using cloud technology is the right fit for your organisation. Please contact us for more information.

If you would like more information about how costs were assessed and calculated, please contact us.