Hidden Costs of On-Premise Infrastructure vs IaaS

This document is a guide that details the direct and indirect costs associated with on-premise infrastructure and contrasts them with the cost characteristics of Infrastructure as a Service (IaaS). It identifies direct costs, which are easier to quantify, such as server costs, backup systems, and software licenses, providing specific examples of potential expenses. For instance, the initial setup for multiple servers can reach approximately $25,000, excluding indirect costs, which can significantly increase the total financial burden. Indirect costs, often overlooked, can potentially double or triple the initial estimates. The guide encourages users to utilize a worksheet to document their current costs, which includes various factors such as real estate, temperature control, staff salaries, and downtime costs. By understanding these expenses, organizations can better evaluate the financial implications of maintaining on-premise infrastructure versus transitioning to IaaS, considering both immediate and long-term benefits.