$115K: What You Save On Data Center Rent By Moving To The Cloud

May 31, 2011 7:05 am

We spotted this today:

“As any company doing business in a metropolitan city will tell you, rent on office space is often a major expenditure on the income statement. In order to determine how much IT infrastructure contributes to that cost, let’s do a few back-of-the-envelope calculations. Although requirements vary widely, consider that a company based out of New York has an in-house data center that occupies 1000 square feet. This assumption is reasonable for a small data center serving 100 employees, and includes servers, cooling units, etc.

Therefore, the company ends up spending $115,000 on rent for the data center alone. By embracing cloud computing, this money can be saved. Even if cost of subscribing to a cloud-based service is factored in, the savings will still be considerable. And for larger companies, they add up to substantial amounts.”

Statistics Source: CloudTweaks

We have written about Cloud computing statistics before – and cloud computing market size.

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