As we said earlier, each client has a unique set of circumstances and needs that will factor into the cost savings and benefits. To give you an idea of what you can save when moving your network to the cloud, we’ve put together a sample business scenario we commonly find, and the savings obtained with cloud computing.
Please note we’ve shown this over a three-year period which is on average the normal span of time before workstations and servers need to be improved and software upgraded. Moving to the cloud enables the ability to avoid the purchase of new hardware and software (which is a huge cost savings); hence showing a three-year period to reflect accurate cost savings. Another reason for the three-year period is that cloud services costs decline over time which would risk the comparison going out-of-date and reducing the savings.
Cloud Versus a Traditional Network
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CONTENSCO Consulting This is a professional services firm that has 25 employees all using Microsoft Office. Other applications being used include QuickBooks, Microsoft Exchange, SharePoint and BOM add-on for QuickBooks. |
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Item |
Traditional Network Cost Over 3 Years |
Cloud Network Cost Over 3 Years |
|
Hardware |
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|
Server 1 – Management Server (DNS, DHCP, AD) |
$ 7,000 |
$ 5,000 |
|
Server 2 – Exchange |
$ 12,000 |
$ 4,500 |
|
Server 3 – QuickBooks |
$ 10,000 |
$ 7,500 |
|
Server 4 – Remote Access and File Server |
$ 7,000 |
$ 8,000 |
|
Workstations (25) |
$ 25,000 |
$ 25,000 |
|
Hardware Subtotal |
$ 61,000 |
$ 50,000 |
|
Software |
||
|
Microsoft Server Operating System |
$ 7,968 |
$0 (Included with Server) |
|
Microsoft Office Licenses |
$ 20,000 |
$ 11,200 |
|
Exchange Server |
$ 5,800 |
$0 |
|
Exchange User Licenses |
$ 1,324 |
$0 |
|
SharePoint |
$ 11,148 |
$0 |
|
SharePoint CALS |
$ 549 |
$0 |
|
Antivirus |
$ 5,000 |
$ 5,000 |
|
Spam Filtering |
$ 6,300 |
$ 1,800 |
|
Software Subtotal |
$ 58,089 |
$ 18,000 |
|
Hardware and Software |
$ 119,089 |
$ 68,000 |
|
Other Costs |
||
|
Internet Connection |
$ 7,200 |
$10,800 |
|
Firewall |
$ 8,000 |
$ 8,000 |
|
Backup (on-site and off-site) |
$ 12,000 |
$ 8,000 |
|
Labor |
||
|
Outsourced IT Support for Maintenance |
$45,000 |
|
|
Internal IT Support Costs |
$120,000 |
|
|
Total Costs |
$239,089 |
$113,00 |
|
Savings: |
$126,089 |
Our experience is that, on average, most companies are spending too much in the traditional model and suffering from adapting to fit their business through all the ‘hidden’ compromises. The cost savings are often compelling enough for business owners to overlook the risks of cloud computing. If carefully planned, those risks of downtime and security are greatly minimized. In fact, our average client saves between $ 1,500 to $ 3,500 when they move to our cloud and experience LESS downtime, problems and system crashes than they did with their in-house network.
This sure has enlightened me more about this specific aspect. Thank you!
Thank you. Glad to be of service.