In any serious cloud discussion, there’s always that moment.
Someone leans back, crosses their arms, and says it:
“It’s cheaper on-prem.”
And you know what?
Sometimes, they’re right.
If your organisation has invested in hardware, spent years tuning and maintaining it, and built internal expertise to run it smoothly, of course you’re reluctant to walk away. Walking away feels like setting fire to money. And on paper, those capital investments often still look cheaper than cloud.
But here’s the thing: when we talk about cost, context is everything. And it’s usually missing from the conversation.
What Are You Actually Comparing?
When someone says on-prem is cheaper, what they often mean is:
- The servers are already paid for.
- The data centre is already there.
- The teams are already employed.
So adding another workload looks almost free.
But those comparisons almost never factor in:
- Workload Profiles: Are your applications flat-out 24/7 or idling for most of the day? If they’re static, predictable, and unlikely to change, sure — keeping them on-prem might be sensible.
- Underutilisation: Just because the hardware is sunk doesn’t mean it’s free. Underused infrastructure quietly erodes ROI.
- Egress Costs: Yes, cloud charges to move data out — but have you measured your real usage, or are you just worried about the headlines?
- The Hidden Cost of Inflexibility: If you’re not modernising apps or scaling services, you might feel you don’t need cloud. But what happens when you do need to adapt quickly — for a new project, a market shift, or a sudden demand spike?
The Magic Word:
Strategy
Cost should never be looked at in isolation.
It’s about strategy.
And strategy starts by knowing where you are today — and where you want to go.
If your workloads are largely static, your applications aren’t changing, and you’re not chasing immediate innovation, then yes: keeping them on-prem might be the right short-term play. But even then, strategy demands flexibility. Because chances are, sooner or later, you’ll need access to something more.
Want to explore AI, GenAI, or advanced analytics?
Want to integrate machine learning into your business processes?
Want to experiment with data-driven products?
That’s where the public cloud — and hyperscaler services — shine.
And here’s the good news: you don’t have to go all-in.
Hybrid is Not a Compromise — It’s a Direction
You can keep the workloads that make sense on-prem.
You can extend your capabilities using the cloud.
You can innovate selectively, run POCs in hours, and spin up new ideas without a full migration.
Hybrid isn’t a halfway house anymore.
It’s increasingly the answer.
With improved tooling, better interoperability, and managed services that span both environments, hybrid allows you to modernise at your pace — without abandoning your existing investments.
Final Thought
“It’s cheaper on-prem” isn’t a statement to argue with.
It’s a statement to investigate.
Ask:
- Cheaper for what?
- Cheaper for how long?
- Cheaper compared to what opportunity?
The smartest organisations aren’t swinging wildly between all-in cloud and all-in legacy. They’re asking: what does my strategy need — right now and next?
And often, the answer isn’t binary.
It’s balanced.
It’s hybrid.
It’s strategic.
It’s not one size fits all. Don’t be scared to ask
Because in the end, the most expensive move you can make — is making the wrong one.
Need help? Contact our Cloud Advisory team that’s been helping businesses navigate these Cloud Continuum Complexities for over 15 years.
Leave a Reply