There has been a lot of talk about moving to the cloud and doing business in the cloud. Have you done the due diligence to consider the costs associated with running IT on your premises? There are many factors to consider when thinking about the costs. There are obvious costs such as hardware and software, but extra costs associated with downtime, power outages, offsite and disaster recovery, etc.

Hardware Replacement

The general consensus for hardware replacement is every three years. This could mean new servers, laptops, desktops, etc. This could also mean upgrades to software and other general infrastructure. With this in place every three years, these are continuing costs, which add up over time. Most companies consider the startup costs of IT, but sometimes do not consider the maintenance costs.

Downtime Costs

It was found that the average cost of unplanned downtime was almost $8,000 per minute. That is a staggering number. When the computers will be offline for an extended period of time, and the company plans this, then other provisions could be put into place. When the company goes offline, and it is not planned, then there is an abrupt stop to the workday and lost time and profit working to get the company online again. The costs can be astronomical depending upon the length of downtime.

Power Costs

Having everything plugged in and running, some 24/7 can add up. The server rooms need to run constantly and also need to be in a climate controlled environment. An instance of overheating in the server room can be disastrous. Additionally, when the power goes out, this is equally a problem. In this instance, data can be lost and infrastructure damaged depending upon the reason the power has gone out.

Offsite and Disaster Recovery

Another cost for a business is to have offsite data centers. These costs can include adding or moving servers and general upkeep of the machines. If disaster were to strike then, the data would need to be moved from these machines onto the machines in the office, and then have the machines reset.

Supporting IT

One product of on premises IT is the staff that is needed to support it. This staff will require training, benefits, salary, continuing education, and support for IT professionals whose shifts need covering because someone is out.

Cloud Alternative

An alternative to on premises IT is to use cloud services. All of the extra costs associated with on premises IT is covered by the use of cloud services in an all-encompassing format and price. There is no need for hardware replacement because the infrastructure can be handled by the cloud provider. This means that someone else’s systems will be holding your data, and you can access it through your computer. The cloud offers almost 100 percent up time with redundant features. This allows for even if one part of the cloud were disrupted, there is enough further infrastructure to cover so there will be no downtime. Costs will be less due to less need for IT staff. The cloud comes with a dedicated staff of experts to handle the company’s IT needs.

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