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Cloud Vs On Premise Calculator

The document compares the total cost of ownership of an on-premise server versus cloud hosting over a typical 3-year period for a 15-person office. It finds that the up-front costs for an on-premise server are much higher at $29,535 compared to $3,700 for cloud hosting. Monthly costs are also lower for cloud hosting at $1,522 versus $1,310 for on-premise. Over the 3-year analysis period, the total costs are estimated to be $83,695 for on-premise versus $60,492 for cloud hosting. Additional benefits of cloud hosting include automatic software upgrades, built-in business continuity, flexibility and scalability.

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Sharif Razi
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© © All Rights Reserved
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138 views1 page

Cloud Vs On Premise Calculator

The document compares the total cost of ownership of an on-premise server versus cloud hosting over a typical 3-year period for a 15-person office. It finds that the up-front costs for an on-premise server are much higher at $29,535 compared to $3,700 for cloud hosting. Monthly costs are also lower for cloud hosting at $1,522 versus $1,310 for on-premise. Over the 3-year analysis period, the total costs are estimated to be $83,695 for on-premise versus $60,492 for cloud hosting. Additional benefits of cloud hosting include automatic software upgrades, built-in business continuity, flexibility and scalability.

Uploaded by

Sharif Razi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Cloud 

vs. On‐Premise Calculator

The business case for Cloud Computing is a simple one: its about Total Cost of Ownership.

Use this Calculator  to analyze your TCO of buying/managing an in‐house, on‐premise server vs a comparable 
NETcommand Cloud Hosting plan.  We have entered  typical costs for each item based on a typical 15‐person 
office.  At the end we have also summarized intangible and difficult‐to‐quantify  factors for each model.

Item On Premise Cloud Detail

Up‐Front Costs
Server Hardware (2) $             11,000 NA Cost of the server (hardware)
Server Software (OS & CALs)  $               1,700 NA Typical cost of Windows Server OS and Client Access Licenses
Backup Hardware & Software $               2,000 NA Typical cost of a tape backup drive, tapes and backup software
Exchange 2010 Std with 15 CALs $               2,100 Exchange 2010
Remote Desktop Services $               2,235 $                           ‐  RDS @$149 per CAL
Microsoft Office 2010  $               6,000 $                           ‐  Based on 15 Users of Office 2010 Std.
Ancillary Server Equipment $                  500
  NA UPS (battery backup), Switch, Rack, etc.
Installation/Migration Costs $               4,000 $                   3,700 Typical setup costs (labor) to setup server, and migrate data & applications to new server
Total Up‐Front Costs $             29,535 $                  3,700

Estimated Useful Life (Months) 36 NA Months before server must be replaced.  We recommend using a 3‐year analysis period.
(Analysis Period)

Monthly Costs
Proactive Maintenance & Monitoring $                  400
  ‐Included‐ Typical IT Managed Services/maintenance contract
8 Hours of Monthly Remote Support $                  760
  ‐Included‐
Offsite Backup Costs $                  150
  ‐Included‐ Typical offsite backup costs
Spam Filtering / POP3 $                        ‐ $                         32
Cloud Hosting Costs $                        ‐ $                   1,490 A typical NETcommand plan for a 15‐user company (or enter your proposed plan price)
Total Monthly Costs $               1,310 $                  1,522

One‐Off/Variable Costs
Unplanned Repair Costs $               7,000 $                          ‐ Allotment for unplanned server repair or recovery costs (over life of server)

Savings on PC's NETcommand allows you to buy less powerful PC's.
No. PC's to Replace Over Analysis Period 5 The number of PC's you will likely replace over the analysis period (IE: next 36 months)
Savings per PC on Hardware $                      200 Buy less powerful PC's, saving on average $100 to $200 each PC as you replace them.
Savings per PC on Setup Labor $                      200 With apps in the cloud, no apps to install on your PC's‐‐dramatically reducing setup costs.
Total Savings on PC's Over Analysis Period $                       ‐ $                  2,000

Total Costs
Total Cost Over Estimated Life $            83,695 $               60,492 Total Cost of Ownership over estimated life/analysis period (3‐years)

Other Factors
Accessible from Anywhere Maybe Yes
Software Upgrades to Latest Version No Yes Keep up to date on curent MS products
Subject to Facility Problems Yes No An on premise server is subject to problems with your building, power, Internet, etc.
Built‐In Business Continuity No Yes With your business in the Cloud, you have a buit‐in Business Continuity/Disaster Recovery plan.
Scalable No Yes Owning a server is rigid and expensive to scale.  Cloud allows flexibility and scalability.
Built‐In Branch Office Support No Yes Branch Offices can simply "plug in" to NETcommand, no VPN required.
Consistent Desktop Environment No Yes  NETcommand provides a consistent desktop enviornment no matter where you are.
Microsoft Office Built‐In No Yes Office licensing can be built into your plan, and you are automatically entitled to new versions.
Secure & Private Maybe Yes NETcommand is protected by state‐of‐the art security and privacy systems.
Likelihood of Outage Low‐Medium Very Low NETcommand guarantees 99.99% uptime‐‐can your on‐premise server say the same?
Financing Necessary Maybe No The significant up‐front costs of a server may force you to obtain financing.

Contact Us

Please contact NBN for more information, or for assistance with a custom analysis of your business and the potential benefit of a Cloud hosting solution.

Website www.nbncloud.com
Email [email protected]
Toll‐Free 877‐599‐0977
Local 480‐222‐6020

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