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On-premise or Cloud: A Fiscal Look at Your IT Environment

Posted by on February 25th, 2019 in Blog Posts, Cloud Solutions

It seems as if there is a cloud option for nearly every aspect of IT. From software and infrastructure to telephony and contact centers, businesses can now leverage the power of the cloud to streamline the deployment and management of IT workloads. With the plethora of cloud options out there, many IT leaders have had reservations when it comes to moving mission-critical workloads to the cloud. In fact, a 2017 study from the Uptime Institute found that “65% of enterprise workloads were running in data centers owned or operated by those enterprises,” which is about the same as 2014. That said, a third of the respondents indicated that they plan to move workloads to the cloud to meet increased data center demands.

For those that haven’t yet made the switch, there are some often overlooked fiscal implications of keeping IT resources in-house. Let’s take a look at a few.

Real estate and utilities

For organizations that are running multiple servers in a server room, the cost of floor space is only the beginning of the real estate conversation. In addition to the price per square foot, businesses need to consider the cost to power and cool the equipment. Since most office buildings are not designed to be “data centers,” it’s likely that thousands of dollars are being wasted in utility costs to regulate the server environment.

Maintenance and manpower

On-premise servers require constant maintenance, including hardware replacements, equipment and software upgrades, and network troubleshooting. This ongoing support demands not only additional capital but also a staff of system administrators to manage the on-premise hardware and software. In many cases, staff and systems are overwhelmed when resources run low, resulting in downtime and overtime costs to get systems up and running again.

Risk management and restoration

Speaking of downtime – on-premise infrastructures also face significant risks when it comes to security and disaster.  Most do not have the integrated backup or restoration capabilities that come with cloud-based solutions. This means that a break-in, building fire, or catastrophic disaster could result in the loss of critical data and require significant resources to rebuild.

The cloud solution to on-premise costs and risks 

Cloud-based infrastructures offer many financial and operational benefits to companies of all sizes. However, making the jump from on-premise to the cloud can be the source of heartburn for many IT leaders. Whether you’re ready to make the move or just beginning your journey to the cloud, LanYap Networks can help you figure out the next step in your cloud strategy. 

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