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
Wednesday, September 18 2019

Captcha Image

Subscribe to Our Blog!

Mobile? Grab this Article!

Qr Code

Tag Cloud

Tip of the Week Security Best Practices Technology Business Computing Cloud Email User Tips Privacy Computer Microsoft Network Security Malware Productivity Google Software Hackers Hosted Solutions Business Tech Term Communication Hardware Data Ransomware Internet Mobile Devices Small Business IT Services Cloud Computing Efficiency Smartphone IT Support Data Recovery Backup Workplace Tips Upgrade Saving Money Windows Managed IT Services Innovation Android Users Information Social Media Data Backup Office 365 Business Continuity Managed IT Services Microsoft Office Data Management Miscellaneous Mobile Device Windows 10 Browser Smartphones Business Management Internet of Things Server Windows 10 Outsourced IT App Cybersecurity Vulnerability communications Gmail Passwords Productivity Facebook Word Phishing Remote Monitoring Artificial Intelligence Disaster Recovery Encryption Infrastructure Network VoIP Chrome Tip of the week Apps Applications Employer-Employee Relationship Virtual Reality Analytics Website BYOD Money IT Support Gadgets Managed Service Provider Save Money Managed Service Automation Google Drive Content Filtering Bandwidth YouTube Antivirus Risk Management Router Apple Education Office Tips Paperless Office Government Storage Access Control VPN Company Culture IT Management Unified Threat Management Big Data Hacker Data storage Display Quick Tips Settings Development Maintenance Employee-Employer Relationship Robot Two-factor Authentication Administration OneNote End of Support Avoiding Downtime Mouse Mobile Security Solid State Drive Wireless Scam Hard Disk Drive Business Intelligence SaaS Networking Search Printing Computers Virtualization Laptop Holiday The Internet of Things Data Security Business Technology MSP Retail Alert Server Management Augmented Reality Data loss Touchscreen Virtual Private Network Telephone Systems Managing Stress desktop Downtime Spam Computing Outlook Tablet Monitors Bring Your Own Device Operating System Vendor Management WiFi Collaboration Firewall Chromebook LiFi Hosted Solution HIPAA Document Management Halloween Best Practice Laptops Licensing Computer Care Dongle IBM Websites PowerPoint Current Events Address File Sharing Permissions BDR Wires Mobility User Error Batteries Assessment Patch Management Data Breach Managed IT Service Solar Customer Relationship Management Co-Managed IT Smart Tech Safety Cryptocurrency Windows 7 Specifications Identity Theft Work Voice over Internet Protocol Remote Computing Scary Stories Heating/Cooling Software as a Service Google Docs Multi-Factor Security Cooperation Training Service Level Agreement Corporate Profile IT solutions Onboarding Going Green GDPR Network Congestion Running Cable Time Management Print Toner Printer Hotspot G Suite Internet Exlporer Slack Hacks Hard Disk Drives Automobile Break Fix Compliance Content Google Wallet Huawei Connectivity Dell Buisness Bitcoin Messaging Black Friday IT Technicians Optimization Modem Cabling FinTech Writing Sports Business Growth Servers Entertainment Google Calendar Staff Leominster WannaCry Wi-Fi Virtual Desktop Digital Signage Emergency Data Warehouse Network Management Shortcuts Legal Language Value Monitoring Password Solid State Drives Dark Web Regulations Google Maps Dark Data Update Unified Communications Streaming Drones Processor IoT Windows 8 Employee-Employer Relationships Cyber Monday Mirgation Recycling Business Analysis Cookies iOS Legislation K-12 Schools Troubleshooting Deep Learning Security Cameras SharePoint Computing Infrastructure Professional Services Politics Spying Mobile Device Management National Security Microsoft Excel Social Networking Customer Service Cybercrime Human Error Techology Memory Star Wars Analysis Managed IT Students Smart Technology Chatbots Digital Payment eWaste How To Lenovo Virus Nanotechnology Disaster Office Samsung Marketing Alt Codes Statistics Scalability Wearable Technology Network upgrade Digital Private Cloud Managed Services Downloads Alerts USB Tech Support Mail Merge Updates Blockchain Motherboard Cables VoIP Device Budget Unified Threat Management Reducing Cost Fraud Cost Management Social Shortcut Mixed Reality Distributed Denial of Service Identity Continuity Firefox LED Information Technology Superfish Threats Screen Reader Uninterrupted Power Supply Charging Social Engineering Typing Bluetooth Migration Humor Comparison Smart Office Spyware Twitter Physical Security Emoji Upgrades Gadget Error Financial Point of Sale Ben McDonald shares Regulation Crowdsourcing Personal Information Botnet Travel Cortana Myths 3D Printing Supercomputer CrashOverride Motion Sickness Processors Staffing Machine Learning Taxes Unsupported Software Administrator Web Server what was your? IT Budget GPS Computer Repair Relocation IT Consultant Mobile Data Recovery Cameras How To Work/Life Balance Printers Meetings Tracking Health Black Market Cleaning Mobile Computing CCTV Law Enforcement Webcam Notifications Electronic Medical Records

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