As you evaluate the computing landscape at your company, you’ve probably become used to calculating the total cost of ownership (TCO) of computing assets based on buying and owning a hardware and software. When those assets are transferred to the cloud, your analysis changes due to different financial and operational implications.
Migrating to the cloud can create new savings, change the way you think about costs and provide scalability benefits. Public cloud providers deploy distributed, shared commodity servers and keep them up to date and supported to provide the best quality at the lowest price. The need to build or run a data center is eliminated, as is the energy invested in upgrading and updating software and hardware. Instead, the cloud vendor handles these chores on your behalf.
From a business perspective, moving to the cloud reduces the total cost of ownership by automating functions and hands-on processes while offering opportunities for significant process improvements. The cloud also reduces the need to recruit and maintain new in-house talent – Rackspace has experts in security, systems administration, virtualization, storage and more, and we offer expertise on-demand by making them available as needed.
Successfully lowering the cost of ownership requires an understanding of your own software architecture, the capabilities of cloud providers and accounting and management changes that could result from switching applications to the cloud. The truth is that cloud-related savings are not just one-time net from offloading procurement and management responsibilities from in-house IT. A shift to cloud computing brings a near-immediate ease of deployment and, in the long run, a better understanding of your IT landscape.
For more on TCO and the cloud, download the white paper “How the Cloud Reshapes TCO Analysis” now.