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.
Before you start
- Device counts per site
- Quotes for hardware, licences and support
- An estimate of your team's hourly cost
Step by step
Define the period
Use 5 years, the usual life of access points and gateways.
List hardware costs
Switches, APs, gateways for both options, plus on-premises controllers or servers (with a spare) if you manage locally.
Add software and support
Cloud management subscriptions per device and year, or controller licences plus yearly support for the on-premises option.
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.
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.
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.
FAQ
Frequently asked questions
Is cloud management always cheaper?
No. For a single site with an experienced on-site team, on-premises can be cheaper. For many sites with few IT staff, cloud management usually wins on total cost.
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