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  • Karen Bessette

Are Your Cloud Costs Out of Control?

We had a client reach out to us to see whether $48k/month is reasonable for hosting fees in the Cloud. They had 50 employees & resided in 1 office. Another client was paying $32k/month. They had 4 locations & 300 employees. I find there is sometimes a disconnect between the IT staff & the CFO. In both cases, the IT staff, enamored with the Cloud, put all of their servers in the Cloud without regard to cost.

The Cloud is amazing but it comes at a steep cost. Every month as your data increases, so does your monthly hosting fee. We believe that there are valid reasons to be in the Cloud. Websites. Remote Cloud backups. But we thoughtfully place our clients into the Cloud.

So, when you contact us, you not only receive amazing customer service & engineers, you receive a Tech CFO. Bottom line: We look out for your bottom line.

For the first client with 50 employees & 1 office, we brought their hosting fees from $48k/month down to $0.00. They invested in an on premise solution for just over $100,000. Our solution had 2 servers, a primary server & a replication target. They never needed to be in the Cloud. They also had a number of IT staff which were let go. For the full case study, please see the link below. Saved $2.8 million over 5 years in hosting fees.

For the 2nd client, because they had 4 locations & required 24/7/365 uptime, we provided a sophisticated 3 server cluster. We recommended going to a sophisticated co-location facility, which is where AWS had their servers, & built out a rack. Their solutions was over $282k but it's a 5 year solution. Their monthly hosting fees went from $32k to $1,450.00. Saved $1.5 million over 5 years in hosting fees.

We had one former employee that said we were a "garbage company" for migrating clients from the Cloud. And it's that attitude that gets companies in trouble.

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