Is Cloud Computing Cheaper Than On-Premise Servers?

Is Cloud Computing Cheaper Than On-Premise Servers?

Cloud computing is generally associated with lowered costs. Companies that switch to cloud computing get to save money on physical storage space of the servers and the monitoring of the infrastructure. However, many businesses still end up spending more money on cloud computing as opposed to on-premise servers. Here are some reasons why cloud computing may not be as cheap as you think:


Computing Power Requirements

If your applications have variable computing power requirements, you will benefit from cloud computing since you eventually save some money on discounts. Such applications are only used occasionally. For example, applications that are only used once a month are better hosted in the cloud. If usage peaks at some point, you will not need to incur the cost of scaling up the storage space. However, if your applications have consistent computing power requirements, you will not get such discounts.


Cost of Labour

It is hard and expensive to find people with the skills needed to rewrite and transfer applications to the cloud. Many companies have only been able to move part of their applications to the cloud because of this problem. Others have resorted to training their own IT teams to do this job, but maintaining the experts in the company means they have to be adequately compensated. Also, businesses cannot afford to employ underqualified personnel to migrate their data since such people can worsen the performance of their applications.

Cloud computing is marketed as a cost-effective replacement to on-premise servers. In many cases, businesses can save money by moving their data to the cloud. However, you need to consider the variables given above in order to determine whether you will save or lose money at the end of the day.

Date: 14 June 2018, 9:06 am
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