Cloud vs. On-Premise Cost Comparison

Netgain Blog TeamCloud Computing, Financial IT, Healthcare IT, Uncategorized

Forrester Research forecasted that healthcare IT budgets would increase by nearly 9% this year, due to an increasing investment in technology. Similarly, research-giant Gartner agreed with the forecasted growth, but suggested most of the increased budget would be spent maintaining existing infrastructures rather than supporting new business models.

With this increase in mind, healthcare practices across the country should be asking themselves, “how much are we spending each year maintaining existing infrastructures?” And, “could we actually save money by moving our infrastructure to the cloud?”

Elements of the IT Equation

  • Hardware
  • Software
  • Support
    • Application
    • Workstation
    • Server and infrastructure
  • Real estate
  • Utilities (power, waterless suppression systems, cooling, etc)
  • Telecom and connectivity

Opportunity Costs

As Gartner suggests, there are opportunity costs to factor in when calculating your total cost of IT. If your organization is using dated resources that are not reliable or perhaps is using a scaled-down infrastructure to keep costs low, consider the opportunity costs of downtime for your staff. Similarly, if your organization is not using security best practices in your current IT environment, consider the opportunity costs of a data breach and how that could affect your organization.

Data breaches in the United States as a result of negligent security practices are a costly business, totaling $6.2 billion annually.

Apples vs Apples

We’ve worked with thousands of clinics to migrate their on-premise IT infrastructure to the cloud. This t-scale analysis shows IT cost drivers. Enter your practice’s costs into each of the categories, then get a proposal for Cloud computing to see where your practice can save money (along with improving security, gaining access to a team of experts, achieving peace of mind, and all of the other benefits that come along with cloud computing).

In-House Cloud
SUPPORT (ANNUAL)
IT Help Desk
SQL / Application / Server Specialist
Storage, Backup & Recovery Tech
Outsourced Network Engineer
EQUIPMENT AND UTILITIES
Racks
Physical Security
Server Monitoring / 24/7 response ($149 per server)
Cooling Hardware
Utility Consumption ($15/Server/Month)
Back Up Power – diesel generator and maintenance
SOFTWARE
Windows 2016 Std. OS
Windows Server 2016 Client License
Microsoft Office ProPlus (Office365)
Exchange 2016 Server Standard
Exchange 2016 User Client License
Remote Desktop Client License
SQL Ent 2016 Core License
Backup Software
HARDWARE (NEW / REFRESHED)
Terminal Servers
Domain Controllers
EHR SQL Server
Exchange and File Server
Secure Tape Storage
Storage Area Network (SAN)
UPS
Router/telecom equipment
TELECOM
Telecom Connection
Telecom Security Services/Software
Support Total
Equipment and Utilities Total
Software Total
Hardware Total
Telecom Total
Total 1 Year Projected Cost
TOTAL 5 Year Projected Cost

The Cloud Solution

Over 80 percent of healthcare providers are using some form of cloud services within their practice, according to HIMSS Analytics’ Cloud Survey. In a cloud environment, there are fewer cost-factors and far more benefits.

  • Per-user fee. Your cloud service fees will be predictable, and based on your number of users.
  • Pay only for what you use. Not using as much storage as you thought you would? Less users than you planned? With cloud, you’ll only pay for what you use.
  • Always right-sized. Don’t pay for extra storage because the UPS only came in a few sizes. And don’t pay for a server that you’re only using half the capacity. Your cloud environment means you’ll only pay for exactly what you’re using.
  • Improved security. With partnerships like Microsoft, cloud providers like Netgain can offer the security level of a multi-billion infrastructure.
  • Top-tier Support. Access Support Analysts who have extensive knowledge in clinical IT systems and your environment specifically.

Could your IT budget plateau? Instead of using your increased budget to maintain aging equipment, could you invest into new technology initiatives that would improve patient care and outcomes? How could the cloud maximize your IT budget?

Contact us and we’ll conduct a full cost comparison of your current on-premise (or cloud partner) environment against our cloud solution.