Hosting saves you much money by removing the need for huge expenditure on infrastructure, hardware, software, etc. You do not need to spend on maintenance and upgrades. The money you save could be allocated to new strategic projects for expanding your business. You are not required to indulge in over-purchasing of resources.
With cloud computing you move from a capital investment to an operational expense. In traditional computing, apart from the cost of provisioning a server internally, there is a whole range of costs associated with the internal server’s cost, such as, technical personnel necessary to keep a data centre up and running; utility bills and capital expense investments for power and cooling; internal technical people to do assessments and trials of different hardware offerings; internal and external costs for data centre designers, facilities management, etc. With cloud computing, you pay on a consumption basis e.g. per hour, per gigabyte, etc. This has a huge impact on your organization’s economics. The cloud computing model offers a much cheaper way for businesses to acquire and use IT.
Cost Efficiency Table
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