Bredy Network Management Corporation Blogs

BNMC has been serving the Andover area since 1988, providing IT Support such as technical helpdesk support, computer support, and consulting to small and medium-sized businesses.

Hosting a Workload in the Cloud vs On-Premise: Which Option Saves More Money?

Hosting a Workload in the Cloud vs On-Premise: Which Option Saves More Money?

By now, business owners are well aware of the many ways cloud computing can benefit their organization, such as providing increased mobility and flexibility. Despite the tantalizing list of benefits the cloud presents, some business owners may still be hesitant to switch to the cloud due to one major factor: the perceived lack of cost savings. Well, thanks to a recent study by John Burke, analyst and CIO of Nemertes Research, there’s new evidence showing how hosting workloads in the cloud is more cost-effective than the alternative, hosting operations on-premise.

InformationWeek reported on Burke’s findings which were presented at Interop ITX: “Data is still being collected and the final analysis isn't done, but Burke said he has formulated a measure that's an indicator of predictable savings in the cloud. With an IT staff person as the unit of cost, the enterprise data center workload costs $23 per IT staffer compared to $18 of IT staff expense for a workload in the cloud.”

Granted, these findings won’t line up exactly with the experience of every real-world business scenario. It’s also difficult to get a lockdown on cloud providers’ pricing models, due to how they may change for different combinations of resources. Despite these discrepancies, Burke is confident of the formulas used to arrive at his conclusion, especially regarding workloads that experience extremes in traffic and thus require more scalability. According to Burke's study, these workloads are more economical to run in the cloud. Whereas workloads that are more predictable “may or may not be less expensive to run in the cloud,” says Burke.

It’s also worth noting how the most significant cost savings were found when a workload is refactored or re-engineered to operate in the cloud. An example of this is using a cloud database service as opposed to setting up a database virtual server to run the service 24x7. According to the study, this kind of move yields significantly more cost savings compared to simply migrating a workload to the cloud in an effort to duplicate its operational characteristics there. Burke put it plainly, "Don't expect to save money with the cloud unless you're willing to change what you're doing with the cloud – re-architect applications or develop cloud-native ones."

Therefore, business owners looking to maximize their cost savings from the cloud will want to work with an IT professional to factor this in, rather than just pushing all of your current operations to the cloud and expecting to see a significant boost to your IT budget. That said, it’s not like migrating your company’s operations to the cloud will lose you a ton of money and isn’t worth pursuing. The downside of just transferring current operations is that you won’t see as significant cost savings this way compared to taking the route of re-engineering apps in the cloud.

For assistance with all of your cloud computing needs, including finding solutions to utilize the cloud in ways that maximize cost savings, don’t hesitate to call the technicians at BNMC today.



No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Tuesday, 26 September 2017
If you'd like to register, please fill in the username, password and name fields.

Captcha Image

Subscribe to Our Blog!

Mobile? Grab this Article!

Qr Code

Tag Cloud

Security Tip of the Week Cloud Best Practices Technology Email Privacy Malware Hackers Hosted Solutions Business Computing Internet Software Computer Google Windows Ransomware Microsoft IT Services Backup Business Windows 10 Data App Hardware Smartphone Network Security Business Continuity Innovation Internet of Things Saving Money Productivity Cloud Computing Phishing Mobile Devices IT Support Data Management Facebook Android Data storage Efficiency Remote Monitoring Word Small Business Settings Robot Gmail Office Tips Google Drive Upgrade Big Data Data Recovery Smartphones Managed IT Services LiFi Managed Service Provider Administration Microsoft Office Mobile Device Content Filtering Windows 10 Office 365 User Tips Money Tip of the week Analytics Outlook Monitors Risk Management Save Money Telephone Systems Alert Artificial Intelligence Vulnerability Network Encryption Miscellaneous Apple IT Management Productivity SaaS Chrome Hosted Solution Server Cybersecurity Workplace Tips YouTube IT Support communications Social Media Unified Threat Management Managed IT Services Disaster Recovery End of Support Browser Outsourced IT Passwords Business Growth Marketing Touchscreen Computers Training Managed IT Password Corporate Profile Lenovo Drones Automobile Hacker Dell Display Shortcut WannaCry IT solutions Google Maps Superfish Alt Codes Patch Management Data loss Running Cable Scam Budget Customer Relationship Management Heating/Cooling Typing Buisness desktop Humor Automation Current Events Politics Virtual Desktop Digital Laptop Firewall Mouse Collaboration Servers Cryptocurrency Samsung Deep Learning Virtual Reality Spyware Communication VPN Going Green Spam File Sharing Server Management Bitcoin Bring Your Own Device Downtime Solid State Drive Storage Employer-Employee Relationship Writing Virtual Private Network Printing Websites Gadgets Legal Quick Tips Dark Data Statistics Windows 8 Hard Disk Drive Retail Mail Merge Bandwidth Apps Halloween Cabling Users VoIP Customer Service Bluetooth How To Office Address Computing Education Scary Stories Vendor Management Infrastructure Operating System Avoiding Downtime Antivirus Social Website Firefox Social Engineering Digital Payment Data Backup Information Technology Best Practice Unified Communications Sports Disaster Time Management Search Maintenance The Internet of Things Safety Emergency Uninterrupted Power Supply Google Docs Network Management VoIP Network Congestion Computer Care Hacks IBM WiFi Cybercrime Wireless Business Technology Google Wallet Wi-Fi Ben McDonald shares Point of Sale Gadget Virtualization Computer Repair Paperless Office Staffing Mobile Device Management How To Administrator Processors Health what was your? Web Server GPS Mobile Computing Holiday Black Market Business Management Electronic Medical Records Cameras Tracking Twitter Upgrades Networking CCTV Document Management Tech Support Remote Computing 3D Printing Notifications Identity Theft Unsupported Software Travel G Suite Crowdsourcing Update CrashOverride Supercomputer Botnet Mobile Data Motion Sickness Taxes Government Recovery IT Budget Machine Learning IT Consultant BYOD Chromebook Relocation Physical Security Meetings Cleaning Work/Life Balance Emoji Private Cloud Personal Information Webcam Law Enforcement Cortana Error

Sign up for our Newsletter!

  • Company Name *
  • First Name *
  • Last Name *

      What Our Clients Say

      • BNMC has provided us with nothing less than outstanding service and results for all of our IT needs for the past few years. Every member of their staff is professional, knowledgeable, friendly and eager to solve any problem...
      • 1
      • 2
      • 3