The cost of running a traditional data center
42 percent: Hardware, software, disaster recovery arrangements, uninterrupted power supplies, and networking. (Costs are spread over time, amortized, because they are a combination of capital expenditures and regular payments.)
58 percent: Heating, air conditioning, property and sales taxes, and labor costs. (In fact, as much as 40 percent of annual costs are labor alone.)
Most data centers run a lot of different applications and have a wide variety of workloads.
Many of the most important applications running in data centers are actually used by only a relatively few employees.
Some applications that run on older systems are taken off the market (no longer sold) but are still necessary for business.
The cost of running a cloud data center
Constructed for a different purpose.
Created at a different time than the traditional data center.
Built to a different scale.
Not constrained by the same limitations.
Perform different workloads than traditional data centers.
Labor costs are 6 percent of the total costs of operating the cloud data center.
Power distribution and cooling are 20 percent.
Computing costs are 48 percent.