Differences between Azure Cloud Server and Physical Server (On Premises)
There are so many reasons and benefits having the Azure Cloud Server.
Having a Physical Server is a very expensive cost for any company to buy and maintain.
Both the initial upfront and running costs are very costly.
Physical Server (On Premises)
Total Cost of Ownership
- Hardware and Software – eliminates the need for physical and virtualized hardware,storage, and software licensing
- Management and Maintenance – Microsoft provides full management and maintenance of Exchange Online with 24/7 Support
- Backup – Microsoft provides automatic real-time backup and recovery for alternating datacenters
- OPEX – Operating Expediture
|You will need to buy hardware and software for|
- Hardware Server
- OS Server Software
- Antivirus Software
- Backup Software
- SAN/NAS Storage
- Extended Maintenance Services for 24/7 (for Server)
- Extended Warranty for Server and other Network Devices
- Higher Service Level Agreement (SLA) for Internet Services
- Redundancy Hardware and Services (for failover)
- CAPEX – Capital Expenditure
Running Overhead and related Supporting Costs
- Bundled for Azure Cloud Server
- Electricity Costs of running Server, Air-Con, UPS, Backup, Switch
- Maintenance services costs for hardware/software
- Extended Warranty costs for Hardware
- Repair costs for Hardware
- Maintenance cost of servicing air-con for Server Room
- Rental of Backup generator in case of building electricity servicing (requirement by PUB)
- Need Internet Services with Static IP
- Need to pay for redundant Internet Services, in case of primary internet access failure.
- Rental Cost of Office Space
- Cost of Server Rack or any furniture.
- Cost of Cabling/Labeling/Documentation
- Cost of Replacement Battery for UPS
- High availability and redundancy is built in and there is a financially-backed 99.9% SLA for Exchange Online.
- Need to get 2nd Secondary WAN
- Limited Warranty of the physical hardware (max 5 years)
- No need to upgrade anymore.
- No more downtime for migration to newer version or hardware
- Need to engage time-consuming and expensive migration exercise every 4-5 years.
- Migration may cause some downtime.
- Newer version every 3 years
- Can scale up and scale down computing power accordingly to changing needs and requirements
- Can stop and start at anytime
- Have to buy hardware and project computing usage for the next 5 years
- Cannot Reduce or downgrade
- Little Resale Value if operation ceases
- Lower Costs
- Shorter downtime
- Higher Costs due to manual and physical work
- More Downtime during migration
- Faster Location Migration
- Can be located in anywhere desired according to user location (to minimize network latency)
- Slow Location Migration
- Need to pack and unpack if operation relocate.