Sure, we are often asked questions about security, performance, accessibility, regulatory compliance and so forth. Still, no single question gets asked more frequently than this one. The short answer, quite frankly, is "it depends." The long answer is that there are a variety of factors that must be considered when determining the cost differential between legacy/traditional IT systems and their Cloud based counterparts, but one of the most important factors is often overlooked.
That factor is an organization's IT philosophy.
On one end of the spectrum are the organizations which highly value their IT assets and leverage them as a competitive advantage. Such organizations typically purchase high quality servers, storage, and networking gear, and then back them with fast-response 24x7 warranty coverage. Further, these organizations typically do not let their equipment age beyond the expiration of the warranty period (typically 3 years for servers and storage and 5 years for networking gear) and are constantly refreshing their environment to ensure the highest system availability and performance. These organizations often elect to rent space in weather hardened data centers to store their most critical systems and information, and some even operate multiple data centers for redundancy purposes. Finally, these organizations are usually staffed with and/or outsource to experienced IT professionals that are skilled in the proactive management of high performance IT infrastructures. This approach to IT requires significant capital and operational investments.
At the other end of the spectrum are organizations which have an IT environment which appears as though it is held together with duct tape and bailing wire. Little or no money is budgeted for IT, preventative maintenance is rarely performed and instead of replacing systems based on a standardized refresh schedule, these organizations typically wait until something breaks before they fix it. While there are many reasons why this approach can be the MOST costly in the long term, that discussion is beyond the scope of this post. The reality is that organizations that operate in this manner perceive themselves as spending very little on IT.
So, does Cloud Computing save money?
For the organization that is committed to the highest standards in IT, the answer is a very resounding YES. The multi-tenant architecture of the Cloud allows companies to leverage systems with the same or often greater performance, redundancy, and high availability at a small fraction of the cost of building, operating, and maintaining their own infrastructure.
For the organization that generally ignores their IT and (often mistakenly) perceives little to no value in their systems, the answer is almost always NO. After all, it is pretty hard to save an organization money when they are already spending the bare minimum.
While the above two examples represent the extremes, the reality is that most organizations fall somewhere in between. Essentially, some organizations will save a significant amount of money by transitioning their IT to the Cloud where others may end up saving none or even paying more. A trustworthy Cloud provider such as C3 will work with you to determine just what kind of savings the Cloud might offer.
Contact Us today to find out what the Cloud can offer your organization.