Total Cost of Ownership (TCO) for Cloud Computing
A 4-year total cost of ownership (TCO) comparing cloud and on-premise business application deployment.
This research study compares the total cost of ownership (TCO) of cloud computing versus on-premises application deployment over a four year horizon.
Key findings from our analysis are:
- TCO for cloud based solution is 55% lower for 52 user deployment but the difference lowers to 35% lower for 200+ user deployment
- IT infrastructure costs are approximately 11% of the total cost of deploying on premises. These costs do not exist for cloud computing
- Total Cost for cloud computing is $730,745 less than on-premise for the 100 user scenario.
- Spending for application implementation and support (including internal IT staff and/or VAR, consultant or SI resources) 3.5 times more for on premise deployment (100 user scenario)
Caution: Vendor sponsored research so you will have to cut through the self promotion
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Posted on 05/03/2010 by