Looking at the statistics on cloud computing, you’d be forgiven for thinking almost everyone was moving to the cloud. According to one recent study, cloud infrastructure spending reached $37.1 billion in 2016, growing at 15.5%. However, traditional IT spending still accounts for the majority — 63.4% or $64.3 billion. Although companies are moving more resources offsite every year, the on premises vs.cloud debate is still raging.
The benefits of on premises hosting are still considerable in certain circumstances. Companies that have invested heavily in on premises infrastructure and licensing often stay onsite or use hybrid cloud adoption as a bridging strategy to fully utilize their investment.
Organizations with complex or legacy systems also may stay on premises — often because they believe there are no qualified partners available. Organizational conservatism can also sway the on premises vs. cloud debate, making companies reluctant to change their existing landscape.
However, although not all organizations are ready to move to the cloud, the medium-to-long term cloud hosting is the best option for almost everyone.
Benefits of Cloud vs. On Premises: Cost
At this point, there’s no contest. Between hardware, software, infrastructure and support, a typical company would spend in the neighborhood of $416,000-438,000 in the first three years running SAP HANA onsite. Working with Symmetry would save them about $150,000 in the same timeframe. Additionally, it would allow the business to adopt a stable, monthly OpEx model, eliminating the unpredictability of onsite expenses. Check out our SAP HANA Deployment Guide to see the complete on premises vs. cloud cost breakdown.
On Premises Vs. Cloud: Accelerating IT Initiatives
The scalability of the cloud is a powerful driver of IT initiatives. Developers can self-provision, spinning up new resources at will. In an enterprise cloud, even demanding enterprise workloads like SAP HANA are easy to scale, allowing companies to easily add new modules or adjust to increasing demand.
If you choose your cloud provider wisely, you’ll also have a wider skill set available for new initiatives. Symmetry has SAP certification in Hosting, Cloud Services and HANA Operations Services, and has expertise in security, compliance and disaster recovery as well. That means when our clients need an SAP upgrade or are ready to adopt a cloud disaster recovery model, we’re ready to get started, eliminating the time-consuming search for outside expertise.
On Premises vs. Cloud: Upgrade Strategically
On premises hosting typically ties companies to a set of hardware and software. Adding new hardware is expensive, and factors like limited space for hosting and legacy silos can make it difficult to upgrade your technology. This makes it hard to quickly harness new tools or react to changing market conditions.
In the cloud, you’re not tied to hardware and infrastructure in the same way. The right IT managed services partner will keep their data center footprint up-to-date, and use virtualization to allocate and configure resources as needed. This allows you to upgrade much more strategically, without constantly having to work around the technological constraints of your on premises infrastructure.
The Benefits of Cloud vs. On Premise Are Greater Than Ever
As pressure builds for the CIO to deliver more with less, the cloud has become key to a successful business and a happy board. Legacy systems, investments and other concerns that traditionally kept IT on premises no longer have to constrain your growth and innovation.
Contact Symmetry to learn how the cloud can revolutionize your organization.