Cost Comparison: Traditional IT Costs vs. Cloud Systems

What follows is a cost comparison in Table Format between a business operating under a traditional IT Structure vs. a Cloud Structure (MyClowd). The figures quoted are very conservative.

Part 1 Details

Description: Small Service/Sales organization with 10 people/Computers.

Option 1:   Traditional IT Configuration:

  • Small      Business Server
  • 10      Work Stations
  • Microsoft      Office Professional
  • CRM      System
  • Accounting      System
Description of Service

Cost to Implement

Life Span Annual Cost
Purchase Traditional Server Basic Configuration – Hardware   only

$ 7,600.00

4 Yrs

$ 1, 900.00

Set Up Traditional Server

$ 3,000.00

4 Yrs

$ 750.00

10 Basic Workstations, Microsoft Office  No Monitors

$ 14,500.00

4 Yrs

$ 3,625.00

Manage your Companies IT Requirements (Server Maintenance,   Back Up, Updates, Configuration etc) Also include the time your staff spends   on IT, Virus Updates etc.

$ 12,000.00

N/A

$ 12,000.00

Annual Costs :                   $ 18,275.00

Option 2:   Operating your System “MyThinPC”  The Cloud Option

  • 10      Users Cloud Services “MyThinPC”
  • Includes      newest version Office, Backup Services, File Storage, printing etc
  • Thin      Client Terminal Desktops or Notebooks
  • Option      to use regular computers.

 

Description of Service

Cost to Implement

Life Span Annual Cost
Set up the user- on time cost

$ 800.00

10 yrs +

$ 80.00

MyThinPC Annual Cost

$ 9,720.00

N/A

$ 9,720.00

Thin Terminals or Standard Desktops

$ 4,000.00

10 Yrs +

$ 400.00

Annual Costs:                    $ 10,200.00

 

Part 2 Cost Comparisons

Cost Comparison:

Measurable Savings: (Very conservative figures)

Traditional Server:                                                       $ 18,275.00
MyThinPC (Cloud computing)                                     $ 10,200.00

Annual Savings:                    $   8,075.00
Savings 5 Years                     $ 40,375.0
Savings 10 Years:                  $ 80,750.00

No so Easily Measurable Savings:

  1. The ability to work from any computer from                     Saving   $$$   ??
    anywhere at any time
  2. Can build Satellite Offices as required with                       Saving   $$$   ??
    no IT investment
  3. The ability to remove or add a user on demand                Saving  $$$    ??
    and your IT cost only go up or down by user.
  4. If you have a Hard Drive or Motherboard fail                     Saving  $$$  ??
    on Traditional Server Configuration and you are
    down for 3 to 7 days how much does that cost
    the company
  5. If you have a catastrophic event and you have to             Saving  $$$  ??
    server and down for two to three weeks

Cloud computing gives you the flexibility to adjust quickly to any occurrence and to grow and shrink as required. MyClowd helps the small business focus on their business and not there IT.

Please note the savings are even higher as the number of users increase. If however you have five users instead of 10 as specified in this example your costs do not drop in half for the Traditional Configure (It is more like 25 to 30 %) but they do drop in half for MyClowd

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