Why Data Centers are More Expensive Than AWS

Why Data Centers are More Expensive Than AWS?

The speed of business evolution has never been faster in the history of the corporate world. In order to outperform their competition, businesses and organizations have been continuously taking on new strategies. One of such strategic changes is opting for AWS over data centers that enterprises have been working on to enhance the value of their business in a significant manner. When you look at the bigger picture, building and maintaining your own data center is, without a doubt, a much greater responsibility as well as a much higher cost as compared to a solution that the cloud offers. However, immediate hardware cost savings is not the real advantage of leveraging AWS. In this article, we will take a look at some of the reasons why data centers are more expensive than AWS and vice versa.

Lower Total Cost of Ownership (TCO)

Technological advancement, for a large-scale enterprise, is always an investment that is huge. For this reason, businesses always need to give more importance to long-term prices while making a significant purchase decision and choosing among alternatives over short-term prices. In simple terms, they should not only look at the purchase price of the solution or product but its operating cost as well. In the long run, an item that has a TCO that is lower is always more suitable.

Adoption of cloud computing does not only include deployment of applications into a cloud-based environment but refactorization of business operations as well as leveraging of key organizational resources accordingly as well. When organizations opt for Amazon Web Services Cloud, they do not have to cater to the system’s risks pertaining to security and resource availability, administration, and maintenance, unlike when they host data centers on their own premises. It is the cloud service providers that are responsible for almost all of the computational infrastructure, such as databases, storage, servers, etc., within a cloud environment.

AWS services and resources are available in the cloud 24 x 7, and the capacity of the cloud data system of AWS is unlimited. This means that as soon as users need anything, they can have it right away. For this reason, developing applications and running experiments take much less time and cost. Developers can deploy new storage, create databases, and set up servers in a matter of minutes while the efficiency of other staff members also increases. This results in enabling teams responsible for application development to utilize their saved effort and time on the business logic in a more productive manner as the infrastructure takes less burden.

What it does is that it increases the performance of employees as well as enhances the agility and speed of operations. All this allows organizations to either appoint more human power to areas where there is a shortage of workforce or reduce IT infrastructure staff to save costs.

All this is not possible with in-house data centers. AWS allows users the flexibility to scale their existing Amazon Web Services up or down extremely quickly as per demand, as well as to adopt new AWS services. It also enables users to select services as per the existing requirements of their business and increases business agility. Therefore, businesses can have greater extensibility, and they can diminish their migration costs. Similarly, traditional data centers do not reduce the cost of operations as much as AWS does, leading to higher TCO as compared to AWS Cloud.

Flexible Pricing

AWS allows pricing options that are highly flexible for the buyers by providing multiple pricing models. This, in turn, gives production decision-making much more flexibility. While using AWS services, businesses do not have to obtain complex licensing or bind to long-term contracts. All they need to do is to register before they can expedite benefiting from Amazon Web Services. They only need to pay for exactly what they consume, and they can simply cease using a service that they do not need anymore without having to pay a termination fee. 

All the AWS services stand criteria for pricing that is individual and displays clear and full transparency. Users can opt for what they require as a service and pay for only the volume of it that they utilize. This allows users to run experimental projects using their free tier before deciding to actually pay for the resources. This enables organizations to stay focused on their innovative ideas and overcome production limitations as well as procurement complexities.

AWS, as the leader in the market, has a customer base that is extremely large. Businesses of all sizes operating in several different sectors and industries leverage AWS services resulting in the achievement of massive economies of scale. It is a part of the business model of Amazon Web Services to allow their customers to have a lower variable cost by transferring the economies of scale benefit to them in the form of their pay-as-you-go-model. Other than that, the pricing model of AWS allows its customers to leverage a variety of different techniques for cost optimization.

Final Thoughts about Why Data Centers are More Expensive Than AWS

For these cost-efficiency benefits, organizations have been migrating to AWS from their traditional data centers at a rapid pace to render their business more competitive and gain efficiencies. With cost optimization solutions, flexible pricing options, and lower TCO, AWS services have been able to offer a variety of highly economical solutions to a number of different customer requirements. However, another key factor that is of paramount importance if a business is to extract the full potential benefits of Amazon Web Services is the third-party vendor it opts for support and AWS management. To ensure a swift and easy migration, as well as high-end support and assistance with each and every AWS component, get in touch with Cloud Computing Technologies, an experienced and expert AWS services provider. Contact us to learn more about Why Data Centers are More Expensive Than AWS.

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