Top 3 Reasons Staying On-Premise Can Cost You More

Avatar Money down the drain
Many small to mid-sized businesses have not yet made the jump from on-premise to cloud based. While this may feel like a way to save money, here are 3 reasons why this practice is costing you more.

  1. End of hardware life is not the same as a typical software life cycle.

Software typically updates on a much faster pace than 3-4 years, which is the hardware life cycle. When software updates, more power may be needed. That means that the available power to do the same workflow can slowly drain away. Beyond this, software tends to expand in functionality. This can put more strain on the integrity of the environment. In a cloud environment, more power and new servers can be created to help alleviate these concerns.

  1. Buying new hardware causes unpredictable spikes in cash flow.

While hardware generally becomes cheaper over time, software requirements often go up as well. This leads to an unpredictable cycle of "how much server do we need for the next 3-4 years"? Buy too little and the company's workflows can suffer. Buy too much and the hardware becomes obsolete before it reaches proper capacity. In a cloud environment, right-sizing computer power for the specific workflow is much easier.

  1. Test environments can cause spikes in computing requirement.

A best practice before releasing new software into a production environment is to first use the new software in a test environment. This way, it is possible to fully understand the functional and interface changes before releasing it to the entire company. This also allows user manuals to be generated and questions to be asked before the software goes live. The problem with an on-premise server is that there may not be enough capacity to run two full environments, production and test, at the same time. If a test environment is able to be created, than your server may be too powerful / costly when the test environment is not in use. In a cloud setting, servers can be added and removed as needed.

If you are unsure if your specific environment would be a good fit for a cloud solution, please
 contact us.

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