Modernization of a Classical Data Center (CDC) vs. Adoption in Cloud Computing Calculate Total Cost of Ownership for Both Cloud and CDC - Jordanian Case Study

Abstract

Cloud computing is a vital paradigm which has become a top priority in companies around the world. Small to medium enterprises (SMEs) are thinking about how to adopt Cloud computing with high hopes of improving efficiency, using the latest technologies, increasing agility, avoiding the headache of acquiring hardware and software in CDC and, finally, saving money by minimizing the upfront cost. However, there are currently no accurate feasibility or Total Cost of Ownership (TCO) studies to encourage them to go for the Cloud approach and stop modernizing CDC. Since Cloud cost is one of the key topics nowadays, a one-year project was conducted to modernize and innovate a Classical Data Center (CDC) owned by a Jordanian information technology company and track the associated expenses to determine whether modernization of a CDC or adoption of Cloud computing instances is more cost-effective. To achieve clear insights, this study presented the cost difference between modernization of CDC and Oracle Cloud adoption. The results of this research study revealed that Cloud Computing is highly cost effective when TCO is calculated. Moreover, this study could be useful and applicable for information technology enterprises and banking domains.