Report Comparing Cloud Service And On Premises Installation Of Server Hardware


You are expected to compare the cost of using a cloud service versus on-premise installation for the given requirements.


  • 3 powerful servers with at least 8 cores, 8 GB memory, 50 GB SSD disk (for application frontend)
  • 6 powerful servers with at least 8 cores, 50 GB memory, 100 GB SSD disk (3 for application backend and 3 for database server)
  • 4 moderate servers with 4 cores, 8 GB memory, 40 GB disk (for different purposes)
  • 10 TB Disk capacity
  • 2 load balancing systems (one for frontend, one for backend – For an example, F5 BIG-IP Global Traffic Manager 1600 - load balancing device can be used)
  • Network devices: Router, switch, cabling
  • 2 alternative connection via different service providers (10 Mbps is enough for work hours- 10 Mbps metro Ethernet can be used)
  • As OS, Windows Server will be used. As database, MS SQL Server will be used.
  • UPS system for 1 hour
  • Your calculations should consider 5 years period, since on-premise systems need to be replaced at every 5 years.
  • Do not forget to include some hidden costs for on-premise systems such as special room, HVAC, energy consumption, etc.
  • Consider also IT personnel requirement for these two cases and accordingly include the costs.
  • Maintenance cost of IT systems typically increases proportional to the age of the systems.



The question belongs to Computer Science and it discusses about comparison between cloud service and on-premises installation of server hardware.

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