Cloud Computing Hosting vs. Traditional Hosting

How does the cost of dedicated hosted server solution compare with on demand hosting?

For the purpose of the comparison I have selected Daily.co.uk for dedicated server hosting and OpSource for on-demand cloud hosting. (In an earlier post I had compared the cost of different cloud providers). This is only a direct cost comparison. I have not considered issues like support, security, reliability, availability etc.

There are also several other assumptions I have made that can be challenged. In conclusion, if you are going to use the application(s) in anger, pricing becomes very similar. The real difference is that in the on-demand hosting model with OpSource, all set-up, pre-configuration and staging was minimal from a cost perspective whereas the hosted provider charges his fixed rate month in, month out.

The benefits to an on-demand model are that you can experiment before going live, try out scenarios, re-configure your own network infrastructure and security policies on the fly and only deploy out to your users when you are entirely satisfied. Over a 12 month period, I estimate costs to be very similar.

The real benefits of Cloud based IaaS are clear, easy introduction, complete control and if you chose the right partner (I would of course recommend OpSource) then you are in safe hands with an SLA a hosting provider simply could not meet.

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