The most popular and comprehensive Open Source ECM platform
Let us know more
Cloud Computing: On-Premise Vendors Question Cost Savings of Cloud
Cloud computing versus On-Premise. Choosing between the two isn’t necessarily a no-brainer.
When the focus is strictly on the cost, it is often a trade off of CAPEX with OPEX expenses. An on-premise model will run up high CAPEX or capital costs, like for running the data center, IT support salaries, and maintenance costs. Cloud computing expenses are heavy on OPEX or operating costs, the cost for using cloud computing as a utility.
As noted by Scot Petersen in an eWeek article, understanding cloud computing costs goes beyond just CAPEX and OPEX comparisons. On-premise costs tend to be more predictable. Cloud computing costs are difficult to forecast when there are charges for sudden surges of use.
Initially cost was the sole driver for choosing to use the cloud. Now, cost may not be as big of a factor as the flexibility that the cloud can provide. On-premise vendors are now pointing out that measuring cloud cost savings can be tricky.
Michael Dell, CEO of Dell Technologies, said that “we’ve seen a boomerang effect, or repatriation, of customers saying, ‘We thought it was going to save us money and all of a sudden we’re seeing it’s costing twice as much.”
Meg Whitman, CEO of HPE, said that “what we all know is whatever data you put into the public cloud – particularly AWS – it is a bit like Hotel California you check in and you do not check out and if you try to check out it is immensely expensive and takes a long period of time.”
