Did you know more than 87% of an iceberg’s size is under water? Why is this relevant when comparing on premise vs cloud you ask? Well, the costs of on premise IT solutions are similar to an iceberg — most costs are hidden. But this doesn’t hold true for cloud computing, where a far smaller fraction of costs are beneath the water.

Licensing Fees, Subscriptions: The Tip of the Iceberg

With on premise software, you have to pay a licensing fee. That’s the part of the iceberg above the water. Similarly, with cloud computing, you have to pay subscription fees. Again, the tip of the iceberg.

Anticipating What’s Below the Waterline

When comparing on premise vs cloud, you probably also know that there are some costs associated with implementation, configuration, customization, and training regardless of which solution you choose.

But you can’t really see those costs until you experience them — until, like the Titanic, you run full steam into the iceberg. And while you’re prepared and have set aside a contingency amount — a lifeboat of capital in reserve — to cover those costs, it’s tough to know how close to correct your estimate was. Not the grandest of strategies when you’re trying to follow a budget or impress upper management.

Managed Azure Through Data Resolution

Look Out Below!

You must consider the underwater part of the iceberg — the hidden and ongoing costs — when comparing on premise vs cloud solutions. Otherwise, you could sink, just like the Titanic.

Consider this: a server has an optimal life span of 3 to 3.5 years, according to IDC, but many businesses hold on to them for years longer. And this has significant, costly implications.

Cost increases, per 10 users, each year a server ages.Source: IDC

So, let’s say you’re a company of 100 people whose average hourly salary is $35. Here are some of your hidden costs for just ONE server:

Cost of downtime = (support cost) x (# of employees/10) X (avg. salary) X (# hours downtime

The cost of downtime for 1 server per year.Source: IDC

And that’s just for one server! And doesn’t include the time IT spends:

  • Applying fixes, patches, and upgrades to the software
  • Rewriting customizations and integrations
  • Upgrading dependent applications
  • Tuning network performance

All this eats into your time, profits, and productivity and could cost you clients.

On Premise vs Cloud: Ongoing Cost Comparison

Comparing the ongoing costs of on premise vs cloud, a whopping 91% of on premise costs lay beneath the surface.

Beneath the waterline reveals the hidden costs of on premise and cloud IT.

Ongoing Costs
On Premise IT Cloud Computing

Applying fixes, patches, upgrade
Performance tuning
Rewriting customizations
Rewriting integrations
Upgrading dependent applications
Ongoing IT burden
Maintaining/upgrading hardware
Maintaining/upgrading network
Maintaining/upgrading security database

Subscription fee
Training fee

Data Resolution Keeps Most of the Iceberg Above the Waterline

The Titanic was designed to be “unsinkable.” Obviously, it wasn’t. But you can be.

Data Resolution can provide all the behind-the-scenes work — the security, upgrades, monitoring, and maintenance. And our 100% uptime guarantee gives you peace of mind.

Don’t be sunk by what’s below the waterline. Give us a call at 877-885-2649, or contact us today.

Managed Azure Through Data Resolution

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