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What Is the ROI for Cloud Hosting?

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Manufacturers and distributors today have enough responsibilities to worry about. Managing software and data systems shouldn’t be one of them. The truth is, the age of small to medium-sized businesses maintaining on-premise servers has come and gone. The price simply doesn’t justify the return, especially when there is a much more cost-effective option out there.

Yes, we’re talking about cloud hosting. Too many companies are focusing their time and resources on their in-house data solutions when they could be using that effort to solve more pressing matters. With Attivo’s help, you’ll get out of the IT business, once and for all.

Here’s a look at the primary expenses associated with on-premise systems:

Hardware Costs

First and foremost, sourcing your hardware for on-premise servers is very expensive. You’ll have to pay a large, up-front payment for essentials like the various servers that are required (Active Domain Server, File and Print Server, Database Server, Terminal Server, IIS server, etc. Microsoft and others recommend that businesses should be replacing their servers every three to five years or risk relying on outdated equipment with lower performance and potential compatibility issues to run their organization.

Software and Backup Equipment

Sticking with our on-premise server scenario, we must also consider the costs of software and backup equipment needed to run your operation. Purchases like server operating system software, database software, and backup system software are non-negotiables. You will also need to include battery backup systems, which will need to be replaced every 3 to 5 years as well.

Installation, Maintenance, and Support

Merely having the equipment and software licenses is just one piece to the puzzle. Actually getting them installed and properly integrated with your business’ systems is another challenge (and another expense). This service just makes sure everything is in working order and configured the way your business needs it to be.

Maintaining that same equipment will incur additional ongoing overhead. Now you’ve entered the IT business and added even more responsibilities on top of what you were already doing to run your company. You’ll need to hire IT resources, allocate space to store your equipment, and watch your utility bills increase as you power and cool your on-premise servers.

Security and Disaster Recovery

Now that all of the equipment is ready and the backups are in place, it’s time to think about how to protect all of your business’ valuable data. Antivirus software will incur a yearly fee and you’ll need physical security in the form of on-site alarms and video surveillance. But what if something goes wrong? No business is safe unless it has a dependable disaster recovery system in place. An on-site backup offers some protection from hardware failures, but protection from physical disasters involves having a remote disaster recovery site or service.

The average cost to cover everything above over a 5-year period for a small to mid-size business with 20 users is around $310,000. The price tag of using Attivo’s cloud hosting for the same services with better security and less risk over the same time period? $120,000. That’s money that can go back into your real business. The best part? Our services are fully managed, meaning you’ll never have to worry about any of the categories above ever again. Attivo cloud hosting is by far the most reliable, cost-effective option for your data management needs.

Click here to learn more about hosting your Macola system in the Cloud.


If you’re tired of using outdated systems and the extensive costs of managing on-premise servers, transitioning to the cloud may be for you. Try our free ROI Calculator to see how much you could be saving. Through the Attivo Dedicated Cloud, we have helped clients regain control of their company’s through world-class business management systems and significantly reduce costs. If you have questions about cloud hosting and how the Attivo Group can help effectively transition your business, give us a call at 877-428-8486.

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