HOSTED VS. ON-PREMISE

Compare the Total Cost of Ownership of Cloud vs. On Premise based on a 10-user firm.

UP-FRONT COSTSONPREMISECLOUDEXPLANATION
SERVER HARDWARE$6,000$0Cost of the server (hardware)
SERVER SOFTWARE$1,500$0Typical cost of Windows Server OS and Client Access Licenses
BACKUP HARDWARE & SOFTWARE$2,000$0Typical cost of a backup solutions and backup software
ANCILLARY SERVER EQUIPMENT$500$0UPS (battery backup), Switch, Rack, etc.
INSTALLATION/MIGRATION COSTS$3,000$1,990Typical costs (labor) to setup server, migrate data & applications to new server
TOTAL UP-FRONT COSTS$13,000$1,990
MONTHLY COSTSONPREMISECLOUDEXPLANATION
PROACTIVE MAINTENANCE & MONITORING$350IncludedTypical IT Managed Services/maintenance contract
OFFSITE/ONLINE BACKUP COSTS$50IncludedTypical offsite or online backup costs
SPAM FILTERING / POP3VariesIncludedThird-Party spam-filtering and/or POP3 costs necessary with on-premise server
CLOUD HOSTING COSTS$0$1,000A typical Monthly fee 10-user company ($100 per user, per month)
TOTAL MONTHLY COSTS$400$1,000
ONE-OFF/VARIABLE COSTSONPREMISECLOUDEXPLANATION
UNPLANNED REPAIR COSTS$2,000$0Allotment for unplanned server repair or recovery costs (over life of server)
TOTAL COSTSONPREMISECLOUDEXPLANATION
TOTAL COST OVER ESTIMATED LIFE$30,400$12,390Total Cost of Ownership over estimated life/analysis period

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