Opex, or operating expenses, take place on a regular basis and represent a part of the day-to-day operation of the company. Capex, or capital expenditures, are incurred when a company spends money to invest in new equipment. The difference between purchasing on-premises storage and consuming public cloud storage comes down to the difference between capex and opex models. NetApp Cloud Volumes Service for AWS Pricing Description The cloud’s automation and orchestration capabilities also free up system engineers and architects from toiling over customizations, which saves on the costs of labor. Costs for storage in the public cloud are overall lower because all the equipment needed to serve your data is owned and operated by the cloud provider. Using pay-as-you-go cloud storage, the company has one cost associated with that storage: the amount issued with each month’s bill. Cloud Costs Flip the NarrativeĬloud costs are an entirely different story. Moreover, it’s even harder to predict how much budget will need to be invested in order to cover future storage needs. To keep a data center running smoothly also takes a lot of elbow grease from the humans that manage it: system engineers and storage architects have to be on call at all times in case of an issue. New cooling equipment has to be purchased sporadically. What are those hidden costs? If data center storage and server use grow, so do cooling, floor space, and electricity costs. In the current data-swarmed environment, companies need to invest in new storage systems frequently, which can be quite expensive, even before taking hidden costs into account. The costs of maintaining an on-premises data center are rising, just as data growth is increasing every year. The More You Use, the More You Pay: Do Data and Cost Growth Correlate?

Hopefully, this post will give you clarity about how to best manage your company’s storage-and budget. In this blog post, we’ll take a look at the cost demands of running on-premises data centers as opposed to using a cloud-based storage service, such as AWS. They’ve grown nearly identical in many regards, with the clear exception of one area wherein the cloud excels: cost. With every new release, the border between the data center and cloud gets a little bit thinner. Because of the innovations of driven developers, cloud architects, and engineers, cloud solutions now approach the performance levels of the traditional data center.

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