ITM 711 Chapter Notes - Chapter 14-15: Software As A Service, Cloud Storage, Data Center

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Up-front costs = are associated with the initial investments that organizations need to make to fund the it resources they intend to use. These costs include both the costs associated with obtaining the it resources and expenses required to deploy and administer them. Up-front costs for the purchase and deployment of on-premises it resources tend to be high. Examples of up-front costs for on-premises environments include: hardware, software, and the labour required for deployment. Up-front costs for the leasing of cloud-based it resources tend to be low. Examples of up-front costs for cloud-based environments include: the labour costs required to assess and set up a cloud environment. On-going costs = represent the expenses required by an organization to run and maintain it resources it uses. On-going costs for the operation of on-premises it resources can vary. Examples include: licensing fees, electricity, insurance, and labour.

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