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When deploying Microsoft Exchange and SharePoint, organizations must decide whether employing private cloud or on-premises IT infrastructure is the optimal choice. Although some organizations will find that on-premises implementation of Exchange and SharePoint is the preferred solution, this approach is seldom the most cost-effective option.
Indirect costs of on-premises implementation:
• Loss of focus – Diverting IT resources from core competencies and strategic initiatives entails opportunity costs.
• Increased risk of downtime – Missed emails and less productive staff can result in lost revenue.
• Uneven support – Leading private cloud providers employ expert support technicians who work 24x7x365 to ensure that systems operate at peak effectiveness.
Financial costs of on-premises implementation:
• High initial investment – Servers, storage space, and infrastructure required for an on- premises implementation can be very costly.
• Ongoing operating costs – Includes management, utility costs, hardware refreshes and replacement, software assurance and upgrades, and expenses resulting from unforeseen events such as power outages, cyber attacks, etc.
• Support staff – Median annual compensation for qualified system administrators is approximately $100,000.
Source: Dell. ZDNet. Salary.com