Cost of Server Comparison: On-Premises vs Cloud

The cost of servers on-premises and in the cloud varies depending on server specifications. Dedicated servers may require higher costs upfront. On the other hand, cloud servers from vendors such as Amazon Web Services (AWS) and Azure can be provisioned on-demand, meaning you can start out with basic servers and ramp them up later. Total cost of ownership (TCO) analysis and your own usage requirements may help determine which server is best for your use case.

On-Premises Servers

On-premises, or dedicated, servers are physical hardware that your team manages and maintains on-site. The location can be your own, or a datacenter from a third-party vendor but with your own team deployed on-site and responsible for maintaining the equipment.

Typically, on-premises servers are more expensive than other types of computer hardware. While it is estimated that the typical on-premises server costs between $1,000 and $2,500, that could go higher if you require more powerful servers.

You must also ensure that server specifications are enough to meet future demand. Otherwise, you may need to acquire more powerful servers earlier than necessary. If you need to upgrade, the process is also not that trivial and may require downtime.

Other factors that can drive up the costs of on-premises servers are replacement parts, redundant hardware requirements for high availability, electric power, and cooling requirements, and software licenses. On-premises servers also require trained personnel.

On-premises servers are more secure if you have highly trained computer-security teams keeping watch over them. Since they do not require an internet connection, they can also be more reliable than cloud servers.

Cloud Servers

Cloud servers are virtual servers hosted in some remote location, with computing resources that are typically shared between you and other customers of the service vendor.

Cloud servers cost less when you get a server just powerful enough to suit your current needs. If you require more powerful servers later, you can choose to upgrade and pay a higher monthly fee. While economies of scale allow providers to charge reasonable fees at the start, as your demand grows, you may find that your servers also cost more.

In terms of scalability, you can add more computing resources simply, with an often seamless transition to higher specification servers that do not require any downtime.

To protect their reputation and ensure that they do not lose their clientele to competitors, most providers commit to keeping their infrastructures secure. Thus, while your own people may not oversee security, you can be assured that cloud servers are secure enough for your needs.

Cloud servers require access to an internet connection. In the event of an internet outage, your access may be limited.

Which to Consider: On-Premises vs. Cloud Servers

As we mentioned previously, the cost of a server can be as high as $2,500 for an on-premises server and $400 for a cloud server. While the cost advantage seems overwhelmingly in favor of cloud servers, it might happen that an on-premises server may be more ideal based on your requirements. Thus, you must first ask the following questions to help determine the best server for you.

Cost of Server Comparison: On-Premises vs Cloud Servers

Now that you have asked the above questions, the cost comparison between on-premises and cloud servers is next. This is because, while one type of server may be a better fit for your requirements, a TCO analysis between the two will help you determine the best option in terms of overall costs.

Consider the following when comparing the cost of a server:

Parallels RAS: Cost-Effective On-Premises and Cloud Server Deployment

Parallels® Remote Application Server (RAS) is a cost-effective, easy-to-install, and highly secure virtual desktop infrastructure (VDI) solution. Parallels RAS streamlines both on-premises and cloud server deployments using a centralized management tool, and its auto-provisioning capabilities enable your IT infrastructure to scale on demand. It also is compatible with a wide array of cross-platform clients for your end-users.

Parallels RAS supports the deployment of your virtual applications and desktops to your own on-premises servers and servers on the public cloud. It also supports deployment to other forms of clouds, such as hybrid clouds and hyperconverged infrastructures.

Check out how you can use Parallels RAS for your on-premises and cloud server deployments.

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