Cloud is not always cheaper, and on-premises is not always cheaper either. A fair comparison counts everything.

On-premises costs

– Server hardware and storage

– Operating system and software licenses

– Backup and disaster recovery systems

– UPS, cooling, rack, and cabling

– Electricity

– IT labor for maintenance and patching

– Replacement every 5–7 years

– Downtime risk

Cloud costs

– Monthly subscription or consumption fees

– Licensing (often bundled)

– Bandwidth and internet reliability

– Storage growth and egress charges

– Management and optimization time

– Training and migration costs

The comparison trap

People often compare a server’s purchase price to a year of cloud fees. A fair comparison spreads on-premises costs over the server’s life and includes power, backups, labor, and risk.

When on-premises can win

– Steady, predictable workloads

– Large data volumes accessed constantly

– Specialized hardware or low-latency needs

– Regulatory or data-residency requirements

When cloud can win

– Variable or growing workloads

– Limited IT staff

– Need for rapid scaling

– Business continuity and remote access priorities

Hybrid is common

Many businesses keep some workloads local and move others (email, collaboration, backup) to the cloud.

DBR Soft can model both options for your environment so you can decide with real numbers. Contact us for more details.