Cloud Computing: Common Cost Differences from On-Premise
Compare some of the common costs that are different between cloud model and on-premise IT model.
In general the physical servers, network, operating system, and many levels of security are reduced (from an on-premises model) in the cloud model as these responsibilities are offloaded to the Cloud Provider; whereas (depending on IaaS, PaaS or SaaS) higher level logic, application installations, configurations etc. remain the responsibility of the organization
What are some budget line items that would cost more in the cloud cost model than in the traditional on-premise IT model?
Subscriptions will increase overall as the cloud model relies on a subscription based model for operational expenses on hardware, networking, and possibly software. The necessity for Cloud Engineers also increases, whereas other types of engineers may decrease due to the technology shift
What other considerations should be included when looking at the economic impact of a cloud adoption?
Expected adaptability and usage projections, acceptable outage times for services and business continuity in the case of cloud provider outages, compliance requirements for services, staff training, network stability
How is the cost of the software license usually handled in a cloud computing solution?
In SaaS, and PaaS; software costs are often embedded into the subscription price. In IaaS this can depend on the configuration. Some vendors can provide subscription-based licencing to accommodate a scalable cloud-based model (Such as Processor Licenses PL, and Subscriber Access Licenses SAL), but in other cases the organization is responsible for tracking licenses much as they would on-premises.
Trappler, T. J. (2013, April 18). Software licensing in the cloud. Retrieved from https://www.computerworld.com/article/2496855/software-licensing-in-the-cloud.html
Insider, W. (2015, August 07). Software Licensing in the Cloud - Now With More Flexibility. Retrieved from https://www.wired.com/insights/2012/03/licensing-cloud/