How the Cloud Delivers Greater ROI than On-Prem IT Solutions

Deciding whether to stick with an on-premise IT infrastructure or move to the cloud can be a stressful decision. There’s much to consider. From migration fees to ramp-up time, making the move requires you to invest time and money.

However, instead of focusing on the initial hassle, it’s important to project the long-term return on investment (ROI) you can expect to receive. That ROI isn’t always strictly monetary either. It can come in the form of:

  • More available office space
  • Greater new client and staff onboarding efficiency
  • Better customer service, etc.

To fully understand whether an on-premise data center versus an infrastructure-as-a-service (IaaS) solution makes sense for your business, you’ll want to consider these 4 fundamental factors:

  1. Capital Investment

It’s no secret that investing in an on-premise data center typically requires a significant upfront investment in order to secure the space, technology, and technicians to create and manage it. In short, you’ll want to do the math to determine your total cost of ownership of an on-premise option versus a cloud-based infrastructure platform.

As we mentioned earlier, on-premise options typically require additional hands-on technical support that comes at an added cost, whereas cloud options outsource that responsibility and distribute the cost of maintenance to the entire subscriber base, making it more cost effective for all.

To determine how much an IaaS solution might cost you, check out this helpful calculator.

  1. Scalability

If you need to double your capacity overnight, doing so with a physical data center could prove difficult. Often, additional hardware and software is required to pull off such a move. IaaS, on the other hand, gives you the ability to scale up or down at a moment’s notice. This way, you only pay for what you need.

  1. Flexibility

When you’re managing complex and risky software updates, test environments are essential. It’s important to understand how an update is going to affect your user base before rolling it out to everyone.

Using IaaS instead of an on-premise solution gives you the ability to quickly build a virtual testing environment instead of going through the trouble of setting up a new physical workstation.

  1. Ease of Use

On-site data centers require a significant amount of specialized support to manage. And if that support can’t be on call 24/7, which is expensive, you could end up in the uncomfortable position of having to apologize to clients for unexpected and prolonged downtime.

With IaaS, 24/7 support comes standard. For one low monthly fee, you can gain the peace of mind that comes from knowing you’ll have industry-leading uptime, support, and speed.

Try Before You Buy

For many Managed Service Providers (MSPs), the cloud can deliver the low upfront costs, support, and ease of use required to build profitable recurring revenue in record time. But don’t take our word for it. Try the ProfitBricks IaaS platform free for 30 days.