Cloud vs On-Premise Infrastructure

July 5, 2017

Everyone is talking about migrating their computing environment to the cloud.


The biggest question for most businesses is “Do I want the Capital Expenditure (CapEx) or the Operational Expenditure (OpEx)?”


On premise servers cost money (CapEx). Money that usually needs to be spend every 3 – 5 years to keep your environment up to date and stable. Cloud based servers are a monthly fee (OpEx) and will continue to be a monthly fee until you shut down the cloud based servers. Some companies are opting to migrate to the cloud because they want to eliminate the Capital Expenditure and can budget for the monthly fees associated with a cloud based solution.

The biggest concern for a cloud based solution is that the servers are no longer on premise and require an Internet connection to access them. Is this Internet connection big enough and is it redundant in case of a failure of the Internet circuit?


If you migrate any business-critical servers to the cloud it is always a good idea to have redundant Internet circuits. It is also a good idea to have these circuits on separate infrastructures. (i.e. Comcast and AT&T or fiber and copper) It would be silly to have two AT&T circuits being utilized because if AT&T has a problem, both circuits will probably go down.


The cloud is here to stay, but you should analyze the cost benefits of migrating to the cloud vs keeping your servers on premise.

  • Will it cost less money to have your servers in the cloud then to keep purchasing new on premise servers?
  • Will you have to increase the size of your Internet circuit and/or add a second redundant Internet circuit?
  • Is your environment growing and costing more to maintain your on premise solution?
  • Are the other advantages such as availability, reduced administrative efforts that make a cloud solution worth consideration?
  • How can Managed Services be applied to improve operations and reduce strain on the overall organization. 
  • Is there a Hybrid-Cloud configuration that may benefit your organization?

Answers to these questions can give you an understanding if it’s cost effective to migrate part or all your servers to the cloud.


Contact an ETS consultant today to discuss ways to improve your business by leveraging cloud solutions such as Office 365 and Microsoft Azure. 

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