I don't buy that the cloud is secure. We hear about security break ins every week. Even large companies get hacked. After all, larger companies make larger targets.
I completely agree with your numbers. Most people are bad with math and only think of initial cost. I work in the small business market (5-25 users) and I cannot justify the cloud for anyone.
Hardware costs always go down. Every 4-5 years I upgrade my clients' servers and each cycle they get 3-5x more horsepower for their dollar. Anything with a 'service' (including my hourly fees) only goes up. However, as software gets better, I am able to configure systems in less time so while my rates have gone up, the cost to the client remains the same.
I would bet that cloud fees will only up. That is why I have invested in stocks of ISP and Telcos.
People go nuts when their email doesn't work. It is almost always related to the internet connection. Now, imagine what happens when people cannot access their data or their applications whenever there is a connectivity problem?
Keep Up with TechRepublic