Is Cloud Computing Right for Your Business?


Many business owners debate whether to get a virtual server or physical server. Cloud computing is one of the most popular topics being debated among business owners. Is it right for your business? Well, though, popular, not every business will benefit from this technology. Cloud computing may be excellent for certain office setups, but a physical server may be the better option for many. Let’s explore.


The Comparison

Cloud computing technology, in comparison to a physical server, is a service to the business owner and not necessarily a product. When you choose this type of technology, you are leaving confidential data in a public network where the access security is also provided by the cloud hosting company.  The security of the cloud server is dependent upon the provider’s decisions and investments. The cloud services, sometimes termed “Infrastructure As A Service” or IAAS, are provided on a virtual platform, such as is offered by Amazon AWS and Microsoft Azure services. The software and hardware is combined to provide the requested server resources and is usually streamlined and billed on an hourly basis instead of upfront.


Physical Servers

Raw hardware is what makes up the physical server. This is known in the IT industry as dedicated servers to an exclusive client, which explains that you can depend on them to secure your data, keeping it confidential and away from the watchful eyes of the Internet visitors and hackers. The hardware is 100% devoted to the business that purchases the server.  The entire cost of the server must be paid for up front and can range from $5,000 to well over $25,000 depending upon the components and configuration.


The Disadvantages

Cloud computing services may be the perfect option for some businesses, but can be a nightmare for other companies. Let’s take a look at the disadvantages of this service and how it could surprise you with a shoddy infrastructure and an enormous bill. First the bandwidth that you have to use with cloud computing will rack up your bill. How?  Well, the service allows you to pay as you go. While it may be great for some people to make an investment in a dedicated server, the irregular monthly bills may cost more in the long run.


The Terabyte

You may be deceived by the low price, but when you calculate it, you may end up paying more. For example, if you are being charged $60 for each terabyte and you used the standard ten terabytes for the month, your monthly cost could go up to $600. There are also some cloud computing companies that will charge an additional bandwidth fee if you go over your monthly terabytes budget. There could also be extra charges for hardware cost. You may not have planned for the extra cost according to your budget. In the development phase, the ratio of benefit to cost could sound ideal for some cloud users. However, this is the opposite when you get into the production phase.  A typical entry-level cloud server can cost over $700 per month.



Before you view cloud computing as the service that will meet your IT needs, consider all the variables involved and subsequently the cost to your business and budget. A dedicated physical server won’t disappoint you or have you deal with too many variables.  Contact an IT consultant to analyze your needs and provide a true cost comparison before making a decision.


Posted on March 31, 2016 in Information Technology

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About the Author

Marc enjoys working closely with other entrepreneurs helping them leverage technology to enhance success! Boasting 2 decades of I.T. consulting expertise, Marc continues to contribute in many forums, and offers technology insights through our regular newsletter and by speaking publicly across California. He contributes regularly to our blog and actively assists our team here at TechWorks as a virtual CIO consultant.

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