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Navigating IT Investments: On-Premises vs. Cloud Computing - A Comparison

Explore the financial implications of on-premises solutions versus cloud computing over three years. Learn about the rise of cloud computing, its layers, and top providers like SaaS, PaaS, and IaaS. Discover industry insights and plan your firm's adoption of key software technologies based on expert analysis. Contact Ted Schadler for more information.

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Navigating IT Investments: On-Premises vs. Cloud Computing - A Comparison

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  1. On-premises solutions require up-front payments Cost (cash out) Return (cash in) Cash flow ($$) Year 1 Year 2 Year 3

  2. Cloud-computing costs rise as demand (and return) grows Cost (cash out) Return (cash in) Cash flow ($$) Year 1 Year 2 Year 3

  3. Cloud computing encompasses three layers in the IT stack Number of providers by 2019 Software-as-a-Service (SaaS) Cisco WebEx, Google Apps, Microsoft Exchange Online, salesforce.com 10,000s Platform-as-a-Service (PaaS) Google AppEngine, Microsoft Azure Services Platform, salesforceForce.com, EngineYard <10 Infrastructure-as-a-Service (IaaS) Amazon EC2 & S3, Rackspace, Terramark, Savvis, AT&T 100s

  4. SaaS leads in the US cloud conversion Not implementing or don’t know Implementing or expanding What are your firm's plans to adopt the following software technologies? Base: 301 European IT decision-makers Source: Hardware Survey, Q3 2009

  5. Security and maturity lead the worry list Why isn't your firm interested in pay-per-use hosting of virtual servers (also known as cloud computing)? Base: 407 US IT decision-makers Source: Hardware Survey, Q3 2009

  6. Thank you Ted Schadler +1 617.613.5975 tschadler@forrester.com Twitter: @tedschadler www.forrester.com

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