How the Cloud and On-Premise Servers Compare: First-Year Costs and Total Cost of Ownership
Deciding between the cloud and an on-premise server for your data storage needs? This is part three of a series that looks at how the two compare. In this post, we'll consider first-year costs and your total cost of ownership.
Year-one costs for the cloud are significantly lower (50-75% lower) than those for on-premise servers. While the gap in total cost of ownership (TCO) closes over the first few years, a cloud system is likely to have a lower TCO over a span of five or ten years. That's because you'll have to devote funds for replacing your on-premise servers every five years.
Your Total Cost of Ownership
Some agencies have seen huge savings from using cloud technology to streamline their evidence-processing workflows. For example, the Anaheim Police Department found that the TCO of Axon cameras and Evidence.com's TCO amounted to 30% of a disk-based system's and 62% of an on-premise server's.
Your decision could also be affected by the way you plan to pay for your system. A cloud-based system is often a better option for those hoping to implement their system on an operating expense budget. Unlike the cloud, an on-premise system requires a large capital expenditure that will recur every five years.