Just because on-prem is cheaper doesn’t make the cloud a money pit
that many of the same forces driving up cloud costs are negatively impacting colos and private datacenters too, which means the savings made from ditching the cloud may not be as large as enterprises are expecting.
Another factor likely to drive up datacenter costs, according to Uptime, are sustainability mandates. Some jurisdictions, including Amsterdam and Singapore, have enacted efficiency mandates on datacenters. The European Commission also is working todatacenter efficiency mandates of its own, while in the US, several state governments, including Oregon, are weighing similar measures.
These factors combined, Uptime argues, mean that building and running datacenters is going to be more expensive moving forward. And we don't expect colocation facilities are going to eat the higher cost of doing business. More likely, they're going to pass those costs onto their customers in the form of more expensive leases or maintenance fees.For the time being, Uptime notes on-prem and colocation datacenter hosting is still less expensive than the cloud.
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