AWS VS On-

Premises
Report

SEPTEMBER 29

20I-1855
Authored by: Muhammad Ahmed

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Scenario 1: Small Business Website
Hosting
Total Cost of Ownership (On-Premises)

# Name Quantity Unit Price Quotation Link

1. 8 core processor 01 $449.00 AMD Ryzen 7
7800X3D 8-
Cores
2. 16GB RAM 01 $65.99 Corsair
Vengeance LPX
16GB
3. 2 TB HDD 02 $57.99 Seagate
BarraCuda 2TB
4. Cooler 01 $139.99 NZXT Kraken
Cooler-
5. Windows server 01 $1049 Windows
Server 2022
Microsoft
6. Network switch 01 $239.99 NETGEAR 16-
Port Switch
7. 256 Mbps internet speed 01 $49.99/month Internet Plans
WhistleOut
8. Electricity cost 01 10.78 ¢/kWh Electric Power
Monthly - U.S.
9. Power usage cost (125 + 2.76)W $116.005/year Electricity bill
calculator
10. IT staff 01 $79,231/year Server
administrator
salary
Total $ 241,842.615/3 years

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Maintaining On-Premises Server

Maintaining on-premises server requires:

 Server administrator
 Extra storage capacity
 Extra cooling hardware
As per the article of ZDNet, “Toolkit: Calculate datacenter server power usage |
ZDNET”, the maintainence cost of a server goes up to $731.94/year.

Total Cost of Ownership (AWS)

Please refer to the pdf for details.

Cost of 3 years:
6,311.88 * 3 = $18,935.64/3 years

Comparison

Item AWS On-Premises

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 Cost (3 years) $18,935.64 $241,842.615
Maintenance None $2,195
Finance Economical Expensive

In my opinion, the organization should make a shift to AWS cloud for this scenario.

Scenario 2: E-commerce Application

Scaling
Total Cost of Ownership (On-Premises)

# Name Quantity Unit Price Quotation Link

1. 4 core processor 05 $99.00 AMD Ryzen™ 3
4100 4-Cores
2. 32GB RAM 05 $98.99 Crucial Pro
RAM 32GB
3. 5 TB HDD 01 $119.99 Western Digital
6TB HDD
4. Cooler 01 $139.99 NZXT Kraken
Cooler-
5. 2 TB database 01 $57.99 Seagate
BarraCuda 2TB
6. 512 Mbps internet speed 01 $89.99/month Internet Plans
WhistleOut
7. 128 Mbps internet speed 01 $49.99/month Internet Plans
WhistleOut
8. Electricity cost 01 10.78 ¢/kWh Electric Power
Monthly - U.S.
9. Power usage cost 2 x (5 x $320.1574/year Electricity bill
(65+2.76) )W calculator
10. IT staff 01 $79,231/year Server
administrator
salary

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 11. Stand-by server 01 $1,307.92 Another server
with same
functionality
Total $247,269.0644/3 years

Maintaining On-Premises Server

Maintaining on-premises server requires:

 Server administrator
 Extra storage capacity
 Extra cooling hardware
 Shifting to stand-by server for better fault tolerance
As per the article of ZDNet, “Toolkit: Calculate datacenter server power usage |
ZDNET”, the maintainence cost of a server goes up to $731.94/year.

Total Cost of Ownership (AWS)

Please refer to the pdf for details.

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Cost of 3 years:
36,737.88 * 3 = $110,213.64/3 years

Annual Cost of Upgrade

So, in on-premises we would definitely need to add more storage. We would need to
increase it threefold to fivefold if we are expecting as mentioned increase in
customers leading up to 460K customers. The hardware will need to be added as the
customers increased to 3.6 times more than when the infrastructure is built.

Comparison

Item AWS On-Premises

Cost (3 years) $110,213.64 $247,269.0644
Maintenance None $4,390
Finance Economical Expensive

In my opinion, the organization should make a shift to AWS cloud for this scenario.
Also, the on-premises would become more financially-expensive as upgrades to
hardware will be needed frequently with such a customer increase rate.