The theory is that on-prem includes a lot of ancillary costs like a team of staff for maintenance (or cost for outsourcing it), hardware maintenance/upgrades, cybersecurity, dealing with failures, backup, load balancing, multi-region/multizone etc.
I don’t think cloud solves all these issues necessarily and I am convinced if you do the calculations cloud ends up being more expensive depending on the scale. I think you really pay the premium for convenience, speed (of getting things going) and user experience (the software)
The biggest reason I think is SLAs and the ability to blame someone else when something goes wrong. I’ve seen it play out at multiple different companies now.
SLA and support is the biggest one. We had to pay Migrants for Docker Enterprise licenses just in case we needed support or some sort of liability shield.
The theory is that on-prem includes a lot of ancillary costs like a team of staff for maintenance (or cost for outsourcing it), hardware maintenance/upgrades, cybersecurity, dealing with failures, backup, load balancing, multi-region/multizone etc.
I don’t think cloud solves all these issues necessarily and I am convinced if you do the calculations cloud ends up being more expensive depending on the scale. I think you really pay the premium for convenience, speed (of getting things going) and user experience (the software)
The biggest reason I think is SLAs and the ability to blame someone else when something goes wrong. I’ve seen it play out at multiple different companies now.
SLA and support is the biggest one. We had to pay Migrants for Docker Enterprise licenses just in case we needed support or some sort of liability shield.