On-Premise Vs. Cloud

Posted by B3 Alliance, Inc on Aug 1, 2017 8:00:00 AM

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Scott Fenton, a CIO with over 25 years experience and industry thought leader says he bought his last on-premise app over 5 years ago - without the intention of going back. Today, over 30-40% of companies have moved their applications and infrastructure to the Cloud. Does this mean you should follow this example too?

That's not always the case for every company, nor operation. While going from on-premise to cloud definitely has many benefits, it might require more resources that can eat up valuable time and costs for your team. That's why a careful strategy is needed before making this big decision, in order to do this cost effectively and efficiently.

Scott advises partnering up with your finance team to calculate a detailed TCO (Total Cost of Ownership). This would enable you to decide together which method is best for your business.

When it comes to financing, there are some other aspects to consider as well. For example, while you're going to have to spend a large amount of capital to purchase both software and hardware with on-premise apps, the cloud paying method will not affect corporate pocketbooks nearly as much, since the price is typically the OPEX amount paid + monthly expenses. This way you'll have cash reserves for other initiatives and investments, and, if you need to, you can cancel the service to move to an alternative. The challenge is the transition and ability to move to an alternative if needed.

While last week we talked about the challenges IT leaders face with Cloud implementation, there are many benefits of moving to the Cloud vs on-premise.

To find out more, read this IDG Communications article here.

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