{"id":7560,"date":"2017-08-03T07:00:22","date_gmt":"2017-08-03T15:00:22","guid":{"rendered":"http:\/\/formtek.com\/blog\/?p=7560"},"modified":"2017-06-11T13:31:21","modified_gmt":"2017-06-11T21:31:21","slug":"cloud-computing-on-premise-vendors-question-cost-savings-of-cloud","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/cloud-computing-on-premise-vendors-question-cost-savings-of-cloud\/","title":{"rendered":"Cloud Computing: On-Premise Vendors Question Cost Savings of Cloud"},"content":{"rendered":"

Cloud computing versus On-Premise. \u00a0Choosing between the two isn’t necessarily a no-brainer.<\/p>\n

When the focus is strictly on the cost, it is often a trade off of CAPEX with OPEX expenses. \u00a0An on-premise model will run up high CAPEX or capital costs, like for running the data center, IT support salaries, and maintenance costs. \u00a0Cloud computing expenses are heavy on OPEX or operating costs, the cost for using cloud computing as a utility.<\/p>\n

As noted by\u00a0Scot Petersen in an eWeek article<\/a>, understanding cloud computing costs goes beyond just CAPEX and OPEX comparisons. On-premise costs tend to be more predictable. \u00a0Cloud computing costs are difficult to forecast when there are charges for sudden surges of use.<\/p>\n

Initially cost was the sole driver for choosing to use the cloud. \u00a0Now, 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.<\/p>\n

Michael Dell<\/a>, CEO of Dell Technologies, said that<\/a> “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.”<\/p>\n

Meg Whitman<\/a>, CEO of HPE, said that<\/a> “what we all know is whatever data you put into the public cloud \u2013 particularly AWS \u2013 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.”<\/p>\n

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Cloud computing versus On-Premise. \u00a0Choosing 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. \u00a0An on-premise model will run up high CAPEX or…<\/span><\/p>\n

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<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-7560","post","type-post","status-publish","format-standard","hentry","category-cloud-computing"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/7560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=7560"}],"version-history":[{"count":3,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/7560\/revisions"}],"predecessor-version":[{"id":7563,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/7560\/revisions\/7563"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=7560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=7560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=7560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}