Owning and maintaining your own server farm is a substantial expense. There is the cost of hardware, and backup hardware to create redundancy, as well as maintenance and monitoring expenses both in software and staffing. There are also costs associated with providing an appropriate environment that encompasses proper power supply and cooling and physical security. The list goes on and on. In a cloud-based environment, you are only paying for what you are using currently. All other costs are handled by the vendor.

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