Compare over a four-year period the total cost

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Analyze the following scenario and recommend a solution - either cloud-based or on-premises. The XYZ company wants to deploy an application in a cluster of four virtual servers running on two dedicated physical servers, with a 1 TB database. Each of the physical servers costs $8,000; software for four virtual servers costs $12,300. Setup and application deployment for four virtual servers costs $5,500. Environmental fees are $820/month, licensing fees are $250/month, hardware maintenance is $100//month, and labour costs $3,800/month.

As an alternative to the above on-premises solution, the company is also thinking about a cloud-based solution. Market analysis found the following information. The migration is estimated at $45,000. Server instance is $1.20/hour per virtual server but their dynamic load is equivalent to 2.75 servers. Database server and storage is at a rate of $1.09/GB per month. Network is at the rate of $0.10/GB and a monthly volume of 700GB. Labour is estimated at $1,200/month.

Compare over a four-year period the total cost for on-premises IT and cloud-based IT.

Reference no: EM132914742

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