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The cloud is too expensive, and it’s hard to predict future costs!

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Nonsense. When it comes to communication and collaboration tools, it’s important to compare like with like when weighing up costs of on-premises versus cloud deployments. More often than not, this can be a difficult thing to do and organisations need help.

Make sure you look at it from a ‘total cost of ownership’ perspective. Simply comparing the cost of the deployment is not enough, because in-truth, the cost of deploying, managing and maintaining an on-premises solution is far greater than just the deployment.

Have you considered other savings that can come from cloud deployments?

In many cases, when moving from old legacy technology to cloud deployments of voice and collaboration solutions, certain aspects of IT infrastructure can be made redundant in the process. For example PSTN lines. This allows you make considerable savings by reducing payments for technology that is no longer needed.

What about CAPEX costs, now and in the future? Make sure to take a long term view

Cloud environments are evergreen. Once you consume from the cloud, you reduce the need to spend CAPEX on upgrades of servers sitting on your premises or in your data centre. Most on-premises solutions require expensive upgrades every five years and avoiding these will reduce overall costs. It also brings some welcome stability for you CFO with the predictive nature of OPEX costs - there’s no surprises lurking in a financial year.

Have you considered who’ll manage your on-premises equipment and how much it’ll cost?

Consuming from the cloud provides the added advantage of not having to manage and maintain your own servers. This can free up IT resources to be deployed on projects more aligned to your organisations core competences. It also removes the need for storage space and any costs incurred powering and cooling the servers.

Are you paying for capacity you don’t need?

With the cloud, you only pay for what you use and it’s scalable. If your organisation downsizes over the next 12-24 months, your costs come down too. If you’re projecting growth, that’s great; pay for new users when you add them, not now. What happens if you reach your capacity limit on your on-premises server? This won’t happen in the cloud. 

The above are just some areas to be mindful of when looking at the total cost of ownership of your communication and collaboration costs. When making on-premises versus cloud decisions, make sure you’re fully clued up on the related costs and benefits before making a decision.

Keep reading by downloading our latest whitepaper People, Productivity and the digital workplace or watch back our most recent webinar Dispelling 7 common myths of cloud collaboration and the digital workplace’.

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Joseph Walsh

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