Is it better to source IT from the cloud or to purchase and operate it on-premise? Many IT and business executives are facing precisely this decision. A simple TCO calculation — intended as an example — will make the process easier to assess.
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For 80% of CIOs, cloud migration is the hottest topic for innovative business development.
Even today, many business units are no longer asking whether they should use cloud computing, but rather to what extent. After all, migration to the cloud brings more than just stability, flexibility and efficiency: it can also generate savings of up to 20% compared to on-premise operation.
With the cloud driving your digitization, you too can generate significant savings.
Let’s assume that you’re the Head of IT at a small to medium-sized enterprise and need to decide whether you will continue to deploy your IT resources on-premise, or whether you will procure comparable performance as a cloud-based IaaS. Your 5 servers, each with 8 CPU cores, 32 GB RAM and 15 TB HDD storage, cost you $3,454 per month. Comparing the costs of cloud and on-premise solutions, you would only pay $2,753 per month for an improved cloud computing performance.
So what would you decide?