Are you pushing your servers past their prime because you’re unsure about your next move? Many small and midsize businesses are in limbo because they’re debating whether they should replace their on-premise servers or move to the cloud. There is certainly no shortage of articles that exclaim the benefits of cloud computing, but is it right for you?
Cost analysis
If saving money is the main reason you’re thinking of moving away from an on-premise to a cloud-based IT environment, think again. Our in-depth analysis conducted for several clients revealed that on-premise IT infrastructures are more cost effective starting in year three and beyond. The optimal lifespan for a server is three years but it is not uncommon for businesses to wait five years between major technology upgrades.
“The monthly payment for a cloud-based environment isn’t the only cost to consider,” says Ron Mondor, President at Zantek Information Technology. “There are start-up expenses that must be factored into the overall budget, like the cost to migrate your current software to external servers.”
Many argue that replacing your on-premise server is delaying an inevitable move to the cloud, which is likely true. Eventually, on-premise servers will be obsolete. By then, though, cloud costs are very likely to be lower and more business applications will be more readily available in the cloud.
Business analysis
There may, however, be compelling business reasons to move to the cloud. For example, if your company has a head office in Regina and staff in three countries, the cloud offers a more accessible IT environment. There are a few more scenarios where cloud computing can offer advantages over on-premise servers.
Consider the cloud if your company is:
- a small start-up business
- scaling up for rapid growth
- in a position where higher operating costs make better sense than capital costs
- very diverse with multiple locations
Takeaway – Don’t buy into the hype
You’re wise to be cautious about moving your IT infrastructure to a cloud-based environment. Simply put – it’s not for everyone. In fact, for established small and midsize businesses with local operations, the cloud doesn’t yet offer cost advantages over most on-premise server setups. There are other advantages, though. It’s important to consider your current and future business needs and balance them with the cost analysis to determine how to structure your technology environment.
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