As companies weigh the benefits of cloud vs. on premise IT infrastructure, the cost is often the deciding factor. While cloud services have gained popularity due to their scalability and flexibility, some companies still prefer to keep their infrastructure in-house, believing it is cheaper than the cloud. Let’s talk more about the 2 factor cost analysis.

Take Ahrefs, a Singaporean search engine optimization tools provider, for example. The company claims that keeping its infrastructure in-house will save a whopping $400 million over three years compared to using AWS. Although the comparison is not entirely accurate, the cost savings are still substantial.

But does that mean that on premise infrastructure has the same cost benefit for businesses of all models and sizes? Is on premise infrastructure cheaper than the cloud?

To get to the bottom of the debate, this article dives deep into this topic and examines the various factors that impact the cloud vs. on premise costs. Let’s hop in!

Cost Comparison Between On-premise Infrastructure and Cloud Computing

Businesses have long relied on on premise IT infrastructure to keep their operations running smoothly. However, in recent years, cloud computing has sparked a lively debate about the more cost-effective option.

So, let’s pull back the curtain and give you a glimpse of our two-factor cost analysis for cloud vs. in-house IT infrastructure:

1.   Upfront Costs

On premise infrastructure comes with high upfront costs. The organization needs to purchase the necessary hardware and software, and have the infrastructure to support it. This includes power, cooling, and physical security. These costs can add up quickly, especially for smaller organizations with limited budgets.

Cloud infrastructure, on the other hand, is scalable and requires no upfront investment. Organizations only pay for what they use, making it a more cost-effective option for many businesses.

2.   Operational Costs

Cloud infrastructure comes at a minimal operational cost. With cloud infrastructure, the vendor manages the maintenance and upgrades, reducing the need for a dedicated IT team.

Conversely, on premise infrastructure requires a dedicated IT team to manage and maintain it, which can be costly. The IT team needs to be trained and have the necessary skills to manage the infrastructure effectively. Nonetheless, on-site IT infrastructure does give you greater control over the IT environment.

Bottom Line: Reap The Benefits of Cost-effective Cloud With AiNET!

Whether on premise infrastructure or cloud computing is cheaper depends on various factors, including the size of the organization, the level of control required, and the business’s specific needs.

Our analysis concludes that cloud computing is generally cheaper and more manageable than in-house infrastructure. Not only does it offer greater control and flexibility, but it also allows for easy scalability, making your business agile and adaptable to change.

However, you must choose an affordable and quality cloud service provider like AiNET — the one-stop solution for all your cloud computing needs!

With AiNET’s unparalleled suite of cloud solutions, you can enjoy the benefits of public, private, and hybrid cloud storage, or dedicated data centers, all while keeping your costs under control.

Choose AiNET and start reaping the rewards of cloud computing today!