Companies underestimate cloud costs even further due to an unrealistic expectation as to the number of internal IT resources that they will need after pushing applications to the cloud.
"Depending on the type of cloud service being offered (SaaS, IaaS, PaaS), the number of resources required internally may not change at all. In fact, many of our clients who engage in cloud computing have no decrease in the internal IT department at all," says Irvine.
In any case, the likelihood that a company will outsource 100% of its applications and systems into the cloud is minimal. Even businesses that push many of their systems to a cloud solution still have requirements for internal infrastructure and workstation engineers. "As a result, IT department costs are only minimally affected," says Irvine.
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