HOSTED VS. ON-PREMISE

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

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

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