Business Intelligence

The Economics of the AWS Cloud Vs. Owned IT Infrastructure

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Executive Summary

Amazon Web Services (AWS) offers companies of all sizes an elastic, reliable, flexible, low-cost infrastructure web services platform in the cloud. Many companies have already launched applications in the cloud while others are currently evaluating the costs and benefits of moving some or their entire IT infrastructure to the cloud. This paper presents a qualitative discussion of the costs of Amazon Web Services vs. traditional IT infrastructure alternatives. The discussion below offers a comparative analysis of several direct costs of ownership such as hardware costs and asset utilization, data redundancy and security, supply chain management, power and cooling efficiency, and personnel costs.

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