IT and mission leaders often spend numerous budget planning cycles weighing the economics of on-premises versus cloud operations, and that’s completely understandable—the math is anything but straightforward. Simply comparing before and after expenditures won’t get you very far. It’s really apples to oranges when you start to consider the costs of labor, licenses, equipment, and myriad other line items.
That’s not to say that cloud won’t bring immediate operational value. It’s just that organizations are sometimes caught off guard by some of the expenses that come with the transition, or unsure how to go about measuring and characterizing the financial benefits.
With that in mind, let’s set the record straight about a few key issues related to cloud economics: