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Migrating to the Cloud - A Cost Benefit Analysis of Cloud vs On-Premise Computing

17th April 2020

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Many businesses have taken advantage of the benefits available from migrating their On-Premise IT to a Cloud delivered infrastructure such as scalability, self-service provisioning, redundancy and pay-per-use services. In this article we examine what exactly is involved, based on factors such as cost, performance and security.

A Cloud computing implementation (where your IT infrastructure and resources are hosted and managed by a provider such as DC Two) when compared to on-premise (where IT is hosted and maintained physically in your own premise usually by your own staff) moves the management and cost centre of your IT to an Operational Expenditure (OpEx) model from Capital Expenditure (CapEx). This can have many positive benefits for a business which are discussed below.

Reduced Costs

With Cloud computing you only need to pay for the resources you consume, with none of the on-going procurement, maintenance and upkeep costs associated with your own hardware / software installation. Plus, price is normally billed on a monthly basis.

Scalability & Provisioning

In a Cloud environment computing performance can be scaled up or down on demand driven by user requirements and company growth. Whilst new applications or software can be provisioned instantly, removing both delays and configuration issues when compared to an on-premise solution.

Automatic Updates

Any future updates in terms of software and hardware is catered for in a cloud solution by the provider via automated monthly licenses. This ensures computing performance and software version control is always optimised.

Remote Access

Your employees, partners and clients can access their full computing power and server resources remotely 24/7 rather than having to wait until being back in the office.

Increase business agility through a cloud hosted solution with DC Two
With a cloud desktop or server solution, your business can be more agile and save on delays and costs associated with physical on-site hardware.

Disaster Recovery

A good Cloud implementation will come with a complete backup and replication solution ensuring ultimate downtime protection in the event of unforeseen issues.


Whilst it may seem counter intuitive, your data security will be better in a cloud environment than in on-premise IT infrastructure solution. Datacentres (where cloud is hosted and delivered from) operate 24/7 with constantly monitored multiple levels of both physical and virtual security systems.

Of course, every business is different and to ensure a full understanding of the implications of moving to a Cloud based solution we advise you should undertake a complete cost comparison analysis. This is a process DC Two have implemented many times and can help you with.

Cloud Migration and Setup

Once a decision to migrate has been made, the process can be completed between 3-5 days, depending on your requirements.

Our migration technology specialists utilise the best available tools to ensure every element of a successful migration is considered. We fully understand your IT landscape before determining the appropriate migration strategy for each application. The target architecture is designed and then transition is executed to the agreed plan.

Traditional On-Site IT Solution

Cloud Computing Solution

Hardware Server, in on site server room
Physical server purchased with capital expense
Virtual Server, in the cloud
Virtual server paid for monthly as deductible operational expense
Physical Desktop Computer
Physical computer purchased with capital expense
Virtual Desktop Computer
Virtual computer hosted in the cloud, full power of which can be accessed from anywhere
Additional cost. Remote access, on-site or call out tech support
Optional support included if required. Direct support from cloud provider, 24/7 and faster response available
Hardware replacements or maintenance additional expense, results in some down time
No additional costs, all included in monthly, reduces or eliminates down time
Hardware Upgrades
Hardware upgrades additional cost and some down time
Hardware Upgrades
Fraction of the cost, can be upgraded instantly and applied when you restart the machine
Replacement of out of date hardware
Additional cost every time it gets out of date
Replacement of out of date hardware
Never out of date and no additional costs to always be up to date
Disaster Recovery
Recovery may take days to weeks
Disaster Recovery
Recovery from an IT disaster within hours
Off-site back up
Managed by you as additional cost, your responsibility to ensure this is isolated from cyber attacks
Off-site back up
Small additional cost, managed for you and isolated copy guaranteed protected from cyber-attacks such as cryptolockers
Phone System
Traditional phone systems now unsupported
Phone System
VoIP, supports NBN

Contact us today so our expert team can speak to you about your specific needs and tailor a solution for your business and budget. On an ongoing basis, cloud computing is far more reliable and cost effective for any business.

LIMITED TIME ONLY, we are offering your first month FREE plus most of our services are available as a FREE trial* so you can make sure they suit your needs.

Don't take our word for it, our team is more than happy to take you through how this can benefit your specific needs, and tailor a package just for you.

No more delays waiting for server and computer hardware updates with a hosted solution from DC Two
Streamline your server and hardware management. Virtual servers and desktops can be upgraded almost instantly, and maintenance is included. Save your team time and money and no outdated hardware to dispose of.

Contact us today to find out more.

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DC Two is a company with whom we have an excellent working relationship. In the past two years, we have been rapidly growing our business with them. They are now one of our largest customers in WA and for good reason. Not only are they are technology experts, they also recognise that technology exists to support a business outcome. They are easy to talk to and are willing to listen when exploring new ideas. I have found them to be responsive, honest and trustworthy and I would not hesitate in recommending them as a potential business partner to anyone.

- Gary Roberts, Digicor