Summary
Over the past four weeks we’ve been talking about the reasons why many companies in the SMB Market are looking to move their technology to a Cloud Workspace. We’ve discussed the Physical security of your data in the cloud, trust and privacy concerns of business owners and Ways A Cloud Workspace Makes Your Company More Productive.
This week we are going to discuss the compelling financial reasons that moving to a Cloud Workspace is truly an attractive option for your company.
Financial Case Of Moving To A Cloud Workspace
Let’s take the case of a typical small business that has home grown infrastructure that is aging. The time is rapidly approaching where their servers will need to be replaced and additionally they are looking to upgrade software, improve security and possibly add a satellite office. The company currently has fifteen employees, three servers, about 500 gigabytes of current operational data.
After going out for quotes to replace and upgrade their current infrastructure the financial breakout for their on premise solution was about $26,500 for equipment, $10,500 in licensing fees, labor for the upgrade was coming in at $10,500. Their on going maintenance fees for the network were going to be about $1750 per month with an additional $850 per month for backup.
The owner, searching for ways to avoid spending $48,000 to upgrade started to look at other options and looked at our Cloud Workspace solution He was able to save $65,000 over a five years without an upfront capital expense! All the while giving him all the benefits of a Cloud Workspace!
| Upfront Cost | Monthly Cost | Year 1: Total Spend |
Year 2: Total Spend |
Year 3: Total Spend |
Year 4: Total Spend |
Year 5: Total Spend |
|
| On Premise | $48,000.00 | $2,600.00 | $79,200.00 | $110,400.00 | $141,600.00 | $172,800.00 | $204,000.00 |
| Cloud (w/3 year contract) | $0.00 | $2,350.00 | $28,200.00 | $56,400.00 | $84,600.00 | $112,800.00 | $141,000.00 |
A Cloud Workspace has so many benefits it behooves any business owner to seriously examine the benefits before making any future technology decisions.
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