Do you need to make an IT decision of whether or not to move to the cloud? Or thinking of just starting with the cloud? Many business decisions require you to be armed to the teeth with information. IT is another area where you’ll need to brush up. Amazon, Google, and Microsoft provide a wealth of pricing information: if you know how to read it. There are other cloud providers that offer models and comparison tools on their site.
Here, I’ll do my best to provide an overview of on-premises servers, cloud servers, and what might be the best solution for your business. You can email us (firstname.lastname@example.org) or call us for more information.
If you are in the food manufacturing or distribution industry, like running a wholesale baking business, your costs will be lower for the cloud, especially with solutions provided by TwinPeaks Online.
Moving from In-House to the Cloud
What does it cost to move to the cloud from on-premises solutions? Well, to answer that, you need to know how much it costs for cloud servers and how much it costs for in-house servers. Forbes wrote a great article several years ago, comparing some of the costs. (You can read it here.)
At that time, the cloud cost about $100 per user for SMBs. The pricing is similar today, with some variation from company to company and of course depends on your needs. These prices may not fluctuate much in the future, though they will most likely decline. Plans may offer better vCPU performance, or extra RAM, or even additional storage space as time goes on as well.
But what about in-house server cost? That’s a little trickier. If you aren’t using a full-time IT employee or contractor, your costs shrink significantly. For many SMBs the cost of on premises servers is mainly the initial investment, monthly IT maintenance, and the electricity to run it (and any software, but once that’s purchased, it can last a while with minimum license fees per year). An absolute minimum for this would be $500 per month (including the server cost) with the price rising as new infrastructure is needed.1
At $100 on average per user for the cloud, an in-house solution would need to be able to handle more than 5 users to be cost efficient. Compared to cloud services, this can be amazingly inexpensive for businesses that need more users. However, the more users, the more you will need IT support. Scaling on-premise can cost a lot too, especially with rapid growth.
Overall, it may make better sense for a company with two or three dedicated software users to pay for cloud services to save on up-front and maintenance costs. Keep reading if you’re in the baking industry.
Starting in the Cloud
Some of the benefits of going to the cloud come from the low up-front costs. If looking for computing power for the first time, the cloud may offer the best solution. There is little to know upfront, and many companies (including TwinPeaks) offer free consultations to make sure they are the best fit for your needs.
However, be aware that you may need to purchase software and pay license fees even when in the cloud—as they are off-premises servers that act in much the same way as in-house servers.
Bakery Management Software
What makes the industries mentioned so special that they can save extra? On TwinPeaks Online’s partner website, www.myonlinebakery.com, SMBs in the food manufacturing and distribution industry can save on software and cloud services. Essentially, our software is free, once server costs, time, and hosting is taken into consideration. In fact, it may be cheaper entirely to run software from TwinPeaks Online than using services from Amazon, Microsoft, or Google. Our customers pay about $80 for each user, and because not all employees need access, the cost can be less expensive than traditional cloud-based services.
It is always good to check multiple websites to see if you can save money by using current software and squeezing as much life from in-house servers. Cloud-based can save money, but consider options from TwinPeaks Online, as our cloud service software is a two-in-one bundle.
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