Private Cloud vs On Premise: Which is most cost effective?

The cost of running an on-premise server infrastructure vs migrating to the cloud can vary depending on a number of factors, including the size of the business and the specific requirements of the organisation.

In general, however, migrating to the cloud can be more cost-effective than maintaining an on-premise infrastructure.

One of the main benefits of the cloud is that it allows businesses to pay for only the resources they need, on a pay-as-you-go basis. This can be significantly less expensive than the upfront costs associated with building and maintaining an on-premise infrastructure.

Additionally, private cloud providers often offer a range of pricing options, including free tiers and discounted rates for long-term commitments, which can help businesses control costs.

Another advantage of the cloud is that it can be more scalable than an on-premise infrastructure. Businesses can easily add or remove resources as needed, without the need for additional hardware or IT staff. This can help avoid unnecessary costs and reduce the risk of overspending on IT resources.

On the other hand, companies with a high level of security and compliance requirements, as well as businesses that handle sensitive data, may find that maintaining an on-premise infrastructure is the best option for them.

In summary, the cost of running an on-premise server infrastructure vs migrating to the cloud can vary depending on the specific needs of the business, but generally, the cloud can be a more cost-effective option with increased scalability.

On Premise Average Cost Examples: SME of 25-50 Employees

The cost of running an on-premise server infrastructure for a business of 25 to 50 employees can vary greatly depending on a number of factors, such as the specific hardware and software requirements plus the level of security and compliance needed.

 However, here are some rough estimates of the costs involved:

• Hardware

  A basic server setup can cost anywhere from £5,000 to £10,000 per server, depending on the specifications and brand.

  For a business with 25 to 50 employees, a typical setup could include two to four servers.

• Software

  The cost of software licenses can vary greatly depending on the type and number of licenses required.

  For example, an operating system license can cost anywhere from £100 to £500 per server, while productivity software can cost several hundred pounds per user.

• IT Staff

  The cost of hiring and training IT staff to manage and maintain the on-premise infrastructure can be significant.

  A full-time IT administrator can cost anywhere from £30,000 to £50,000 per year, depending on experience and location.

• Maintenance and upgrades

  Regular maintenance and upgrades to the infrastructure can add several thousand pounds per year to the overall cost.

  In total, it's possible that the cost of running an on-premise server infrastructure for a business of 25 to 50 employees could range from £10,000 to £50,000 or more per year, depending on the specific needs of the business.

On Premise Average Cost Examples : 50- 150 Employees

 Again the average cost of running an on-premise server infrastructure for a business of 50 to 150 employees can vary greatly depending on a number of factors, including the specific hardware and software requirements, the cost of electricity and cooling and the cost of IT staffing.

However, a rough estimate of the costs involved in an on-premise infrastructure could include:

• Hardware: £10,000 to £50,000 or more, depending on the specifications of the server and storage devices.

• Software: £5,000 to £20,000 or more, depending on the specific software and licenses required.

• Electricity and cooling: £5,000 to £15,000 per year, depending on the power requirements and the unit cost of electricity, which have risen sharply in the UK.

• IT staffing: £50,000 to £150,000 or more per year, depending on the number of IT staff required and their salaries.

Summary

One of the main disadvantages of opting to run your own on premise infrastructure vs partnering with a cloud provider is the huge variations in cost as highlighted above.

When choosing a Managed Service Provider such as Cloud Geeni, the monthly cost remains the same throughout the length of your contract.

If your business is considering your options, book a consultation with a Cloud Geeni consultant below.

We offer a no obligation audit of of your current IT infrastructure.