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Key Parameters | Data Center (On-Premise) | Hosted Cloud (Off-Premises) |
---|---|---|
Purchase Cost & Installation | High capital and upfront costs May require significant improvements | No capital or upfront costs |
Facilities & Improvements | Needs can be significant depending on hardware needs Delays can creep in if construction is required Power needs can drive significant monthly expenses Single source power, cooling and UPS backups | 100% the responsibility of the provider Provider already has capacity and plans for growth Only pay for power used based on wholesale rates Multiple sources for power, cooling and UPS backups |
Licensing | Requires vendor and contract management Easy to under and over buy Pay 100% up front even if licenses are not in use | Included in hosting fees Optimized to workload needs Pay for monthly usage with on-demand scaling |
Staffing & Expertise | Highly skilled staff for business operations and after hours On your own when problems arise Staff retention can be a challenge | Lean, in-house staffing needs Leverage the provider's expert team Available 24x7x365 to remedy problems |
Maintainance | 100% in-house Not always kept current or follow schedules Patching can cause unexpected interruptions | 100% performed by provider Set scheduling for regular updates Patches thoroughly tested prior to implementation |
Disaster Recovery & Redundancy | Redundancy is very expensive depending on recovery objectives Keeping systems up in the event of a disaster can double or even quadruple costs | Leverage economies of scale Provider has built-in redundancy capabilities Easily add backup and disaster recovery services |
Security | 24x7 monitoring with on-call staff drives overhead Systems often don’t provide the needed controls No standardized testing to ensure no vulnerabilities exist | Benefit from economies of scale 24x7x365 security with stringent systems and controls Self-imposed vulnerability and penetration testing |
Compliance | 100% in-house On your own to understand how to stay compliant Documentation is usually an afterthought | Taken into consideration with build Evolves with changing requirements Trained teams with compliant playbooks and workflows Complete documentation of all events with audit support Third-party audited and verified |
Migrations & Upgrades | Requires additional capital for new equipment May require downtime and facilities improvements Often delays investment in the newest technology | Contract includes equipment refresh No downtime or improvements required Provider offers multiple options and keeps current |
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