For This Discussion Topic You Will Explore Two Infrastructur

For This Discussion Topic You Will Explore Two Infrastructure Options

For this discussion topic, you will explore two infrastructure options for running your organization’s business applications, and post a discussion comment comparing and contrasting three-year total costs of ownership (TCO) under both options. The two options you will compare are – (a) a traditional, on-premises (in-house) or collocated applications environment, versus (b) a newer, vendor-hosted (i.e., cloud computing) applications environment. Assume that your organization has always operated under option ‘a’ and that it is now considering switching to option ‘b’ by looking into Amazon Web Services (AWS), a leading cloud vendor. Currently, under option ‘a,’ your organization is responsible for acquiring, configuring, installing, operating, as well as maintaining any and all infrastructure resources required to run its applications on a day-to-day basis.

Such infrastructure components may include physical premises, servers, server racks/cabinets, network/cabling, databases, storage memory, redundant power sources (if any), cooling mechanisms, etc. Your organization is also responsible for any IT personnel costs incurred in doing all this. On the other hand, by switching to the hosted ‘cloud’ under option ‘b,’ your organization would still own and maintain its own applications, but the day-to-day running of these applications would now be accomplished on the premises and infrastructure belonging to Amazon Web Services, i.e., the vendor. In other words, your organization would no longer need to own any of the physical infrastructure components described in the previous paragraph, or need to retain nearly as many IT personnel.

Instead, it would access its vendor-hosted applications over the Internet, and be periodically billed for amounts corresponding only to its actual usage of each vendor-owned infrastructure resource. To compare the on-premises applications vs. cloud applications options, you will utilize Amazon’s tool called “AWS Total Cost of Ownership (TCO) Calculator," available at the following URL – · After reading the brief introduction to the calculator, click the yellow ‘Launch the Calculator’ located below and to the right of the three screenshots on that page. · · On the resulting screen, enter some hypothetical (fictitious) details pertaining to your current ‘on-premises’ or ‘colocation’ applications configuration, either of which is an example of option ‘a.’ Attached is a screenshot of one such configuration – feel free to explore and play with your own configurations. · · After you are done describing your current applications configuration, click the yellow ‘Calculate TCO’ button at the bottom right to view the three-year TCO comparison for option ‘a’ vs. option ‘b.' Finally, make a posting under this Forum topic, discussing your experience with the calculator.

What assumptions did you make while entering your current applications configuration? Did you feel comfortable making these assumptions? Did your assumptions affect the results of the TCO comparison? What was your overall impression of the two options, before and after viewing these results? Do you have any new questions/concerns/objections regarding option ‘b?’ What would be your advice as a dispassionate observer to any organization other than your own that may be considering switching from option ‘a’ to option ‘b?’

Paper For Above instruction

The escalating demand for flexible, scalable, and cost-efficient computing solutions has significantly influenced organizational infrastructure choices. Historically, organizations have relied heavily on on-premises environments, where they own and manage all physical components required to operate their business applications. However, recent advancements in cloud computing, exemplified by providers like Amazon Web Services (AWS), have introduced alternative options that may offer substantial operational and financial benefits. Comparing the three-year total cost of ownership (TCO) of these two infrastructure options provides critical insight into their long-term viability and strategic fit.

Analyzing on-premises infrastructure involves considering a broad array of costs, including capital expenditure for hardware, software, physical space, cooling, and power infrastructure. Moreover, ongoing operational costs include maintenance, upgrades, security, and the salaries of IT personnel responsible for system administration and troubleshooting. Organizations operating in-house must also plan for capacity management to accommodate growth, which often leads to over-provisioning that increases initial costs and reduces flexibility. Additionally, hardware depreciation and potential downtime costs influence the overall financial assessment. When comparing this to cloud infrastructure, particularly AWS, several cost factors shift from capital expenditures to operational expenditures. Cloud providers like AWS charge based on actual resource consumption, which can minimize upfront investments and enhance flexibility, scaling resources up or down as needed.

In constructing a hypothetical scenario for TCO analysis, assumptions about hardware costs, staffing, data storage needs, and future growth are essential. For example, an organization might assume annual hardware depreciation costs of a specific amount, certain salary expenses based on organizational size, and expected usage patterns for storage and computing resources. These assumptions directly impact the TCO calculations—overestimating hardware costs may exaggerate potential savings with cloud services, while underestimating usage could lead to overlooked charges. During the process, comfort with these assumptions depends on the clarity of organizational data and the familiarity with infrastructure expenses. Generally, organizations feel more confident when estimations are based on historical billing data and detailed asset inventories.

Viewing the TCO comparison often reveals notable differences. Historically, on-premises setups tend to involve high upfront costs and ongoing expenses related to hardware refresh cycles and staffing. In contrast, AWS's pay-as-you-go model tends to result in lower initial investments and more predictable, recurring operational costs. The three-year window emphasizes tax benefits associated with depreciation in traditional setups versus the operational expenses in the cloud model. After analyzing the results, many organizations recognize a potential for substantial cost savings and operational efficiencies by migrating to cloud services such as AWS—particularly for scalable or fluctuating workloads.

Nevertheless, accepting cloud risks, such as data security, regulatory compliance, and vendor lock-in, remains a point of concern. New questions often arise about data sovereignty, disaster recovery, and long-term cost stability. Concerns about ongoing costs—if usage unexpectedly spikes—are valid and require careful planning. For organizations contemplating the switch, advice would include conducting thorough risk assessments, understanding pricing models, and considering hybrid approaches to balance control with flexibility. A dispassionate perspective suggests that organizations should evaluate their unique needs, growth forecasts, and compliance requirements before fully transitioning, recognizing that cloud solutions are not universally optimal but increasingly advantageous for scalable workloads.

References

• Amazon Web Services. (2023). AWS Total Cost of Ownership (TCO) Calculator. Retrieved from https://aws.amazon.com/tco-calculator/
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