Shifting to a Cloud Infrastructure from a traditional hosting needs a Cost to benefit

[davidstweart]

Enterprises from medium to big are long been in to a debate about changing their current Information system strategy by adopting Cloud Infrastructure. But, whenever the status quo is questioned , the management always raises eyebrows.
How secure is Cloud Computing?
How costly is it to shift to Cloud?
Is there any recurring cost or overhead expenses attached to it?
How much is it going to affect our current Information System structure?
What is the ROI on replacing traditional hosting scenario?

Before explaining about the cost structure, we need to understand the features of Cloud Computing in comparison to traditional hosting. Cloud computing ensures to use the data centers being maintained by a third party company remotely. In traditional hosting scenario, enterprises need to purchase and maintain servers in house. Hire IT staffs to manage the servers, perform routine maintenance of the hardware and incur overhead expenses like power consumption, staff salary etc. Moreover, purchase new servers whenever found shortage due to increase in business or as a part of expansion plan.