More Information on costs for the different types of Cloud model
There are different types of Cloud services - SAAS (Software as a Service), PAAS (Platform as a Service), IAAS (Infrastructure as a Service). Each one has unique attributes when is comes to looking at costs, I've jotted down a few thoughts for each and I've included some costs from one of the market leaders in each area.
IAAS (Infrastructure as a Service)
Capital expenditure on an Infrastructure project is much cheaper in the Public Cloud both in terms of physical equipment, power / cooling, server licensing, hypervisor set-up and config etc. It is not unheard of to make 80% savings in comparison to setting up new servers and infrastructure on premise. There also big on going revenue savings from the time saved not managing the physical and virtual layer in your data centre. To give you an idea of how much it would cost to run a small Windows server instance in Amazon Web Services infrastructure 24/7 for year would cost approx £450 per annum. There are even cheaper instances you can run for low impact servers called micro instances - you can run one of these for as little as £120 per annum and that includes the server O/S cost, although you need to provide the CALs. Storage is very cheap too.
Good reading Amazon Pricing
Note: You may have heard people talking about "Private Clouds" - as the name suggests these are private to your company, but you'll not see the costs savings with this model. Your company needs to buy and pay for all the hardware and software inc set-up. In fact this will probably be even more expensive than traditional IT.
PaaS (Platform as a Service)
Again you'll have no upfront costs with a provide such as Force.com (as offering from Salesforce.com). Their Force.com platform allows you to create your own be-spoke applications on their platform. It's a very powerful tool and a very quick way of getting applications out there and onto the web for little upfront costs. I've included a link below for the Force.com platform editions and costs - it's extremely cost effective.
Salesforce.com/platform/platform-edition/
Another platform which is also gaining popularity is Google's App Engine for Business. The costs for it can be seen here
There are different types of Cloud services - SAAS (Software as a Service), PAAS (Platform as a Service), IAAS (Infrastructure as a Service). Each one has unique attributes when is comes to looking at costs, I've jotted down a few thoughts for each and I've included some costs from one of the market leaders in each area.
IAAS (Infrastructure as a Service)
Capital expenditure on an Infrastructure project is much cheaper in the Public Cloud both in terms of physical equipment, power / cooling, server licensing, hypervisor set-up and config etc. It is not unheard of to make 80% savings in comparison to setting up new servers and infrastructure on premise. There also big on going revenue savings from the time saved not managing the physical and virtual layer in your data centre. To give you an idea of how much it would cost to run a small Windows server instance in Amazon Web Services infrastructure 24/7 for year would cost approx £450 per annum. There are even cheaper instances you can run for low impact servers called micro instances - you can run one of these for as little as £120 per annum and that includes the server O/S cost, although you need to provide the CALs. Storage is very cheap too.
Good reading Amazon Pricing
Note: You may have heard people talking about "Private Clouds" - as the name suggests these are private to your company, but you'll not see the costs savings with this model. Your company needs to buy and pay for all the hardware and software inc set-up. In fact this will probably be even more expensive than traditional IT.
PaaS (Platform as a Service)
Again you'll have no upfront costs with a provide such as Force.com (as offering from Salesforce.com). Their Force.com platform allows you to create your own be-spoke applications on their platform. It's a very powerful tool and a very quick way of getting applications out there and onto the web for little upfront costs. I've included a link below for the Force.com platform editions and costs - it's extremely cost effective.
Salesforce.com/platform/platform-edition/
Another platform which is also gaining popularity is Google's App Engine for Business. The costs for it can be seen here
In both instances you pay per user per year. There are no license costs, no hardware - just your development time on the platform.
SaaS (Software as a Service)
As with the other two models there are no upfront costs when looking at SaaS offerings, you pay on a subscription tariff paying per user. This gives you big savings over the traditional model.
Email / Docs - Google Apps @ £35 per person per annum
CRM - Salesforce @various
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