Tutorials · IT Leadership

How to Compare Total Cost of Ownership: Cloud-Managed vs On-Premises Network Management

Price per device is only part of the cost. Compare 5-year total cost of ownership for cloud-managed and on-premises controllers: hardware, licences, staff time, downtime and travel.

Intermediate15 min6 steps

Before you start

  • Device counts per site
  • Quotes for hardware, licences and support
  • An estimate of your team's hourly cost

Step by step

  1. Define the period

    Use 5 years, the usual life of access points and gateways.

  2. List hardware costs

    Switches, APs, gateways for both options, plus on-premises controllers or servers (with a spare) if you manage locally.

  3. Add software and support

    Cloud management subscriptions per device and year, or controller licences plus yearly support for the on-premises option.

  4. Count staff time

    Estimate hours per year for setup, upgrades, monitoring and troubleshooting. Cloud management usually saves time at multi-site companies through zero-touch setup and central upgrades.

  5. Count travel and downtime

    Remote sites without local IT staff cost travel for every change. Put a price on an hour of downtime and the expected outage hours for each option.

  6. Compare and decide

    Add everything per year and for 5 years. Also weigh non-cost factors: data location, Internet dependency, security controls and your team's skills.

Pro tips

  • Check what happens if a cloud subscription ends: do devices keep working?
  • Ask where management data is stored and how it is protected.