The theory is that on-prem includes a lot of ancillary costs like a team of staff for maintenance (or cost for outsourcing it), hardware maintenance/upgrades, cybersecurity, dealing with failures, backup, load balancing, multi-region/multizone etc.
I don’t think cloud solves all these issues necessarily and I am convinced if you do the calculations cloud ends up being more expensive depending on the scale. I think you really pay the premium for convenience, speed (of getting things going) and user experience (the software)
The biggest reason I think is SLAs and the ability to blame someone else when something goes wrong. I’ve seen it play out at multiple different companies now.
The theory is that on-prem includes a lot of ancillary costs like a team of staff for maintenance (or cost for outsourcing it), hardware maintenance/upgrades, cybersecurity, dealing with failures, backup, load balancing, multi-region/multizone etc.
I don’t think cloud solves all these issues necessarily and I am convinced if you do the calculations cloud ends up being more expensive depending on the scale. I think you really pay the premium for convenience, speed (of getting things going) and user experience (the software)
The biggest reason I think is SLAs and the ability to blame someone else when something goes wrong. I’ve seen it play out at multiple different companies now.