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    Is Cloud really that much cheaper than on premise?

     

    We’ve all heard it before: “cloud computing is so much more cost effective than in-house IT – move to the cloud and start saving today!” and “cloud computing will revitalise the British economy – sign up today for a free trial!”

    IT costs less in the cloud

     

    Last week's 'Powered by Cloud' conference had a number of vendors explaining the substantial cost savings that are introduced by moving into the cloud. According to this week's Computer Weekly in its article cloud shrinks IT costs by 90% representatives from mobile network operator Vodafone and TV broadcaster Channel 4 said the cost of their cloud based processing was a tenth of traditional in-house computing. Also reported was comms vendor Verizon, which said its customers were saving between 25- 75% of the traditional costs. These sorts of claims should focus the attention of CIOs and IT management on looking into the alternative options that are offered to both large and small enterprises by the cloud.

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