Welcome back as we continue to look at the advantages and disadvantages of cloud computing. A year ago we first explored
the use of cloud computing in your business, and as the technology has changed we are taking another look. Last week we looked at
How Reliable is the Cloud, and now we tackle one of the aspects of cloud computing that draws the most attention, does the cloud really save you money?
There are so many aspects to consider when it comes to how much the cloud will cost you, this will be broken into two sections. This week we will look at licensing and service costs, and next week will will follow up with implementation costs. Don't forget that in this series in the coming weeks we will also address performance and how to make the most out of cloud computing for your business.
Will the Cloud Really Save You Money?
You’re looking at your aging server that’s no longer performing well and thinking about how you’ll need to replace it soon, and you know that’s going to be big bucks. So you are likely very tempted to move to the cloud where you won’t need to replace that hardware. It sounds great to not have to maintain and upgrade your in house equipment. But is it really much more cost effective?
The answer is: maybe. You don’t just pop your data into the cloud, pay a monthly fee and be good to go. Yes, you pay a monthly fee and it varies by how much data you are using. You also must pay for licenses for each user who is going to access the cloud. Take
Microsoft’s Server and Cloud Platform. Depending on your server and software, you can be looking at a three year license for anywhere from $1,000 to $3,000. Depending on the type of access your users need, you could spend $3,000 for 20 licenses. Depending on the type of license you choose, you could be paying per user or per device. If you have one user accessing your network on their work computer, home computer, mobile phone, tablet and laptop, it can equal 5 licenses.
Don't forget that some of the applications you would like to host in the cloud may have additional charges. The cost of the application, the licensing, other various fees, and just using the application may increase the amount of data you use and thereby increase your monthly bill with your cloud provider.
But you may save money because you are only paying for the resources you actually use. If your business has seasonal fluctuations, you can pay less during the off season when you’re not utilizing as much data instead of investing in a network that has to be capable of that much usage year round.
Of course, every network is different and every business’ needs are different. To determine your individual cost requires you to evaluate your network, data usage, applications and how you use all of it. Maybe you just want to host your data in the cloud, maybe you want to run your applications, maybe just your e-mail. Pricing can vary widely.