20.11.2023/Cloud solutions/

Is the cloud too expensive?

The cloud has undoubtedly changed the way organisations manage and operate their IT infrastructure in recent years. The ability to provide resources on demand has increased efficiency and scalability. For many IT decision-makers, the cloud was therefore the first choice. Recently, however, there has been increasing debate as to whether the cloud is actually the most cost-effective option. Could classic on-premises systems become more important again? In our blog post, we take a look at the topic of the cloud and show how we support our customers in this area.

Cloud Computing

The advantages and disadvantages of cloud solutions

The cloud undoubtedly offers numerous advantages. On the one hand, companies no longer have the costs of purchasing and updating hardware and (limited) licences. In addition, there is reduced support for the internal infrastructure and reduced capital procurement costs (leasing/loans) for the hardware. On the other hand, costs are incurred for the required technical resources and the network bandwidth used. Technical support for the cloud infrastructure is also required. This requires a slightly different level of expertise, so there are costs for familiarising and training employees and the provision of resources also works differently. Another problem is the predictability of the cost models, as this is usage-dependent and therefore difficult to calculate. Most companies do not know in detail which services are used and to what extent. Changing licence models may put the customer at a disadvantage.

Cloud or rather on-premise?

Of course, cloud operators have a profit motive. So if you can utilise on-premise systems well, then it’s probably cheaper.

However, there is still a need to maintain this environment. However, the main cost factor is personnel costs. The cloud is usually interesting because it is not a burden on equity, but rather an operating expense. In addition, you gain technical possibilities that are often not so easy to map in the internal infrastructure. The question is therefore usually not whether the cloud is more expensive, but whether it can better support a company’s changing business requirements. As a company, however, you should be aware that the cloud does not suddenly mean you only have a fraction of the IT costs – they are just broken down differently.

ASTRUM IT helps customers find solutions

We try to do the following for our customers: We offer SaaS offerings for specialised software solutions that reduce HR costs for customers. We also support customers who have opted for HyperScaler Clouds (Azure, AWS, Google Cloud). Here we bring modern expertise and help customers to utilise their infrastructure correctly.

Conclusion on the cloud solution

It is important to understand that the answer to the question of whether the cloud is too expensive depends on many factors. The cloud undoubtedly offers benefits, but it can also be expensive if not managed efficiently. Companies should carefully analyse which option best suits their requirements and budget.

Do you have any questions or need help with the cloud? Then get in touch with our experts.

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