When comparing the costs between on-site resources (network infrastructure, personnel, labor costs etc.) and a Cloud Computing solution, such as PowerDNN; it is very important at get a true assessment of the costs of either option. Keep in mind that, although the sometimes the upfront costs of a Cloud Solution may seem larger, the overall annual cost of ownership is greatly surpassed with an on-site solution. Here is why;
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Cloud Solution provider structure their pricing according to a different set of metrics used – RAM, Storage, bandwidth etc.
- The pricing structure is typically fixed, giving customers a sense of certainty over their overall costs and can easily calculate within a set budget.
If you were to compare this to an on-site facility you would have to factor in many different areas to get an idea of what your total cost estimates would be, thus giving you less certainty and many more budgetary constraints. Below are some things that typically aren’t taken into consideration when calculating the costs of an on-site facility.
- The many direct costs that are accompanied after the purchase of equipment: power, floor space, storage, IT management services and IT support services.
- Some of the indirect costs of running a server include: network and storage infrastructure and staffing to manage the network infrastructure.
- And lastly, the overhead costs of owning a server: procurement and accounting, license management and general IT staffing to manage the day to day operations.
Regardless of the cost savings, we believe that there is one more inherent bonus to Cloud Computing, which offers a significant extra value that is a bit more intangible than the concrete facts. Having an Enterprise Solution in place allows organizations to focus solely on the core of their business; it is our contention that this value side of the equation seems even more compelling than any savings acquired. We want to give you peace of mind in your enterprise solution.
Infrastructure Solution
|
Equipment
|
Comm/Power
|
Physical Location
|
Staff/Management
|
Annual est.Cost
|
On - Site Solution
|
$15,000
|
$17,000
|
$5,000
|
$75,000
|
$112,000
|
PowerDNN
|
$15,000
|
$5,000
|
$1,000
|
$5,000
|
$26,000
|
|
|
|
|
Estimated Annual Savings:
|
$86,000
|