Traditional On-Premise vs Cloud Computing:

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The Cloud computing business motivation is that the resources solutions on demand promise greater flexibility, dynamic, timely and green solution than traditional on-premise computing.

Therefore, we must bear in mind that migrate certain parts or all of a classic on-premise IT to Cloud can provide scalability, can reduce the costs of physical growth, reduce costs and reduce energy use .

On-premise computing needs an initial capital investment, maintenance and the costs of future updates. In contrast Cloud does not need an important initial cost so it has a lower initial investment because Cloud offer elasticity and pay-as-you go cost model.

It is interesting to find which solution is better. But it is more interesting the utilization into both solutions together to keep the best features of each .

In the paper there is an interesting analysis of cost and performance between “Traditional On-Premise” with Cloud Computing classifying the various types of costs CapEX (CAPitalEXpenditures) and OpEX (OPerationalEXpenditures) depending on the attribute to be analyzed ( Infrastructure, Business, Physical Resources, Network, Performance, Energy, budget, etc.). In short we can discuss that in Cloud Computing there are more OpEx and in the traditional on-premise there are more CapEx.

Nowadays generally on-premise infrastructure run with low utilization, sometimes it goes down up to 5 to 10 percent of average utilization. Data centers that utilize Cloud technologies are more efficient than traditional data centers. Energy is usually lost through server under utilization, because most of the time these servers are just in idle mode. But in a Cloud environment the system is managed to run at the highest efficiency. In addition, data center planning allows better power utilization. In traditional data centers, they can have cooling problems and you can run out of space for more servers. There is also a consortium of Cloud providers, who assure that its members optimize their data centers to minimize power consumption.

On-premise solution can be better, whenever if we have a constant full utilization of the IT infrastructure. This often happens in large companies that offers constant services around the world. For example, in their start Facebook was using Amazon services but finally due to their large increase in business, Facebook built his own data center, adapted to their business needs.

Cloud solutions are highly recommended in most areas. But an important factor to consider is that network latency influences negatively in the response time of the Cloud solutions. Traditional On-Premise Computing usually have better network latency and therefore the response time gives better results for the solution.

And also a lot of companies prefer to use on-premise infrastructure for its data privacy and protection. In this project, however, we do not focus on Cloud security.

In conclusion, it is necessary to analyze the CapEx/OpEx balance and the consumption depending on each own case. As we have said, what we study is the energy consumption and in the next chapter, we would like to show our structure solution of hybrid architectures and how they are a solution to reduce energy consumption, without losing too much performance.

Paper: Predicting the Energy, Cost and Performance of Cloud Computing

By Cloud Admin

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