IDG Contributor Network: The high cost and risk of On-Premise vs. Cloud

When was the last time I bought an on-prem application?  Over five years ago and I am not looking back. Having been a CIO for many years, I have seen my share of large-scale software implementations and the maintenance and upgrade overhead that comes with on-prem applications. The numbers are varied, but it’s safe to assume that 30-40% of companies have moved into the Cloud and use it as a resource for their applications and/or infrastructure.

Should you simply jump into the pool with the others?  Of course not. First off, a simple “lift and shift” of applications from on-prem into the Cloud will produce minimal benefit if any, and those may be consumed by the resources required for the move itself. That said, a careful strategy to re-engineer your applications platform into the Cloud could have significant cost savings and operational efficiencies. A very detailed TCO (Total Cost of Ownership) is required before making such a strategic decision. There are a variety of published methods for calculating TCO.  My advice is to make friends with the team in Finance and together agree on which method is best for your environment.  Then partner with Finance to do the TCO.  If it has Finance’s fingerprint on it, the credibility ranking goes real high.  

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