So, What Does IT Really Cost?

Have you ever wondered how much companies spend every year on their traditional in-house IT infrastructures? What about the companies that are experiencing growth? How much is their IT budget scaling in order for their IT systems to keep up with the increased capacity?

Maintaining a fully equipped in-house IT department is, without question, an expensive activity for businesses of all sizes. Companies with traditional IT systems incur a series of expenditures that can be classified into two categories: typical IT capital costs and typical IT expenses.

Typical IT capital costs are usually related to licenses, software and hardware purchases, along with installation and set-up costs; typical IT expenses are basically the support, constant monitoring and other activities that traditional software require to operate adequately.

Through cloud computing, however, initial capital costs are low, because all the associated system requirements are the vendor’s responsibility. An annual or monthly subscription is all the customer needs to access highly available systems engineered to support thousands of users.

Thanks to advantages like high performance, reliability, flexibility, disaster recovery and data protection, businesses of all industries increasingly prefer cloud computing over traditional IT systems. The significant reductions in IT budget, however, seem to be the ultimate reason for the popularity of this promising technology as companies can now allocate resources more efficiently.