Cloud vs Cost of ownership. Is it really worth it?

If you read my last article, you'd see just how passionate I am with system upgrades so things run very smoothly. However, this does cost money and time.  Effectively the responsibility is still on your shoulders because after all, its your system. Never blame your IT consultant, because if you don't like him, you can sack him!

So, what does the cloud cost? Well before you look at the cost, lets look at your existing evironment.  I'm going to use a standard 5 user server network. That is, one business, one server and 5 workstations.  I have based the average' costs of ownership on a client who has had their server more than 4 years.

General Support:

Server support: £960.00pa

Desktop support (x5) £750.00pa

Remote offsite Backup £240.00pa

SPAM defence system £300.00pa

Antivirus (5 users) £300.00pa

Total: £2,055.00pa

Server and memory upgrade cost:
Replacement server – Incl labour £3,850.00

Memory upgrade on 5 units £750.00

Total: £4,600.00

Total annual cost of ownership in first upgrade year: £6,655.00

So now if we look at the Cloud comparison:

Cloud desktop cost per user: £60.00pmpu £3,600pa (5 users)

Desktop support per user: £9.99pmpu £599.40 pa (5 users)

Total cost of ownership of a cloud based system: £4199.40

A Saving of: £90

In this example you can see that £90 is a minor saving.  But of course this is only based on a basic memory upgrade comparison to the 5 PC units. If you look at a PC refresh or renewal of the 5 units and then show the comparison over 3 years, then it looks a little different.

Instead of £750 for the memory upgrades we pay around £2,250.00 for new PC units within the 3 year period.  Add this to Server upgrade at £3,850.00 and the support cost for three years at £6165.00 you have a massive: £12,265.00 over 3 years, most of which is kit that needs your care and attention.

If you now compare this to a cloud based solution over a 3 year period at £12,598.20.  Ok, yes its cost you an additional £333.20 to run however, during this time you are completely trouble free and with no risk of downtime, infection or disruption.  Don't forget, you've not accounted for the unexpected cost of your IT support team charging for repairs, call outs and hardware failures and this could amount to another £1000 - £2000 per annum.  Not to mention your own cost of staff downtime when your server fails.  The Cloud is generally not for those wanting to spend as little as possible on their IT, its for those who want belt and braces, trouble free permenent up time.  We call that BLISS.

Here are the benefits:

Cloud Benefits:

• Prolongs and extends the life of existing PC’s because memory and processing power is no longer a concern.
• The Cloud will always run as fast, regardless of PC age or processing power!
• Security and firewall monitoring no longer required as the cloud server is based at a high security data centre that is monitored and controlled 24x7 – 365
• Desktop boot up time is no longer 4-6 minutes. It is now 2.5 seconds!!
• Access your desktop and applications from any PC anywhere in the world. Staff can genuinely, safely and securely work from home.
• Access your desktop and emails from your mobile phone, hotel, laptop or anywhere
• No longer suffer performance issues from Defragmented drives.
• Never reboot your server again!
• Never run out of memory again with up to 100Gb of Ram available!
• Receive free upgrades without notification.
• All email is controlled via a hosted exchange and SPAM screened and virus checked prior to you get it.
• Never receive SPAM again, Fact!
• Reduce your risk of being hacked, by 100%
• Reduce your risk of being virus infected, by 100%
• Always have the latest software, ie. If Microsoft bring out a new Office package, you get the upgrade for free!
• Only purchase licenses as you require them. If a staff member , leaves your monthly cost reduces!
• Your cloud data is already protected by Antivirus which is included in the cost.
• Each user login is security controlled so you are able to restrict access to ‘private’ areas.
• Share your data and system access between sites without expense private network costs
• Access your accounts, Sage, Book keeping from any PC, anywhere
• Your budget for your software, IT equipment is stabilised and controlled with one single monthly cost.
• No Hidden costs!
• Never have to upgrade your software again!
• Never perform a Windows update or security patch again!

Having read the above, would I pay for it?  Yes, because I already do. I don't my business to fail, lose data or look unprofessional.  If you want a demonstration of how effective the cloud can be, please contact us on 0844 4145591.