Cost is always a high-priority concern for enterprises thinking of using cloud computing. Amazon Web Services understands this and has devised a simple means of projecting how much you can save by adopting their cloud services.
How AWS Cloud Costing Works
It’s a given that companies have to spend up front for infrastructure. The difficult part is estimating just how much computing power your company needs. Provision too little and you would require time and additional costs for upgrades while still dealing with customer demand. Provision too much, and you would be wasting resources.
AWS helps by matching resources to your demand, with a pay-as-you-go system. You make no commitment nor do you have to pay up front. You also don’t have to plan for how much you need because AWS can automatically scale your infrastructure up or down as needed.
Cost-Saving with AWS
Let’s talk about cost. AWS developed the AWS Total Cost of Ownership Calculator to project how much you might save by moving to the cloud. In short, it compares the cost of owning an onsite server against having a virtual AWS server.
Let’s say that you want to provision one dual core physical server with 16 GB of memory, and storage of 5 TB for your start-up business. You want to decide if it’s costlier to do an onsite server or use an AWS cloud server. To find out, simply input these figures into the TCO Calculator and click Calculate TCO.
In the above example, hosting the server on-site would cost about $134,733 for 3 years, while hosting on AWS would only cost $2,882 for the same length of time. This includes the cost of the physical machine, storage, connection, and the IT labor needed to maintain it. In other words, your total 3-year savings would be about $131,851, or 98% annually. That’s an enormous amount of savings and perfect for a start-up company.
Cost-saving is just one of several advantages you can have with adopting AWS. Since no two companies are the same, it would be wise to form a suitable adoption strategy. Take some time to consult with PolarSeven’s certified AWS cloud experts today to get the full benefit of Amazon’s cloud technology.
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