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25 - GUIDES AND ARTICLES PROMO HERO

Where the Savings Come From

  • No More Hardware Purchases – Servers, storage, and networking gear disappear from your budget.

  • Lower IT Burden – Free your IT staff from time-consuming maintenance, patching, and upgrades.

  • Licensing & Maintenance Included – Avoid annual fees for SQL servers, software updates, and support tools.

  • Downtime Avoidance – Minimize costly outages and performance bottlenecks.

  • Built-In Security & Compliance – Regulatory requirements such as HIPAA and CJIS are handled by the service provider.

The Numbers Add Up

Category

On-Premise

Cloud

Savings

Server Hardware (5-year depreciation)

$50,000

$0

$50,000

Server Room Power & Cooling

$5,000/year

$0

$5,000/year

SQL Server Licensing

$15,000/year

Included

$15,000/year

Backup & Disaster Recovery

$7,000/year

Included

$7,000/year

Security & Patching (tools & labor)

$10,000/year

Included

$10,000/year

IT Staff Time (25% FTE)

$25,000/year

Negligible

$25,000/year

Software Maintenance & Updates

$8,000/year

Included

$8,000/year

Downtime Cost Avoidance

$20,000/year

Reduced incidents

$10,000/year

Total Estimated Annual Savings: $130,000

ROI in Action

When you compare investment to savings, the value becomes clear:

Cloud Subscription: $60,000/year
Savings & Avoided Costs: $130,000/year
ROI: 116%

Beyond the Financials

The benefits of moving to a cloud solution extend well beyond cost savings:

  • Faster time to innovation
  • Automatic scalability and updates
  • 24/7 vendor support
  • Stronger security posture
  • Guaranteed HIPAA and CJIS compliance
  • Business continuity and remote access

Your ROI Worksheet

Use this worksheet to estimate your organization’s savings when moving from on-premise software to the cloud. Enter your own numbers in the “On-Prem (Annual)” column. Cloud costs are typically included with your subscription unless otherwise noted.

Cost Area

On-Prem (Annual)

Cloud (Annual)

Savings

Server Hardware

_______

Included

_______

Licensing (SQL, OS)

_______

Included

_______

Staff Salaries (portion of FTE)

_______

Included

_______

Patching & Security

_______

Included

_______

Power / Cooling

_______

Included

_______

Disaster Recovery / Backup

_______

Included

_______

Maintenance or Support Contracts

_______

Included

_______

Cloud Subscription

_______

$________

_______

Total

_______

_______

_______

Helpful Formulas for Cloud ROI

Annual Savings = (Total On-Prem Costs – Total Cloud Costs)
ROI % = (Annual Savings ÷ Cloud Annual Subscription) × 100

The Bottom Line

Transitioning to the cloud isn’t just a technology upgrade—it’s a strategic investment that reduces costs, strengthens security, and improves operational efficiency. For organizations still maintaining on-prem systems, the ROI of moving to the cloud is too compelling to ignore.

Ready to see your own Cloud ROI? Explore Omnigo Cloud Solutions to learn how we help organizations save costs, enhance security, and scale faster.