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Blog > May 2013 > Cloud Computing - How moving to the Cloud can reduce your TCO by 70%

Cloud Computing - How moving to the Cloud can reduce your TCO by 70%

  • Are you running an old email server?
  • Worried about security and cost?
  • Open to moving to the cloud, but not familiar?
  • Budget affecting upgrade decision?
  • Limited IT staff?
  • Want to deliver the latest capabilities quickly and easily?
  • Limited support for mobile users?
  • Do you have ageing versions of Microsoft Office?


If you answered Yes to any of these questions, please read on....

Introducing Office 365 and Windows 2012 Essentials

To combat the spiralling increase of hardware and software costs, Microsoft have introduced two new products:
  • Microsoft Office 365 Small/Midsize Business
  • Windows 2012 Essentials Server

Microsoft Office 365 Small/Midsize Business

In February 2013, Microsoft released two new versions of Office 365. “Office 365 Small Business Premium” is designed for companies with 1-10 users, and “Office 365 Midsize Business” is designed for companies with 11-250 users. This package includes cloud services, including Exchange and Sharepoint, and each user is licensed for the latest Office version which can be installed on up to 5 devices. Currently you would have to purchase a boxed product or OEM license of Microsoft Office, where as the new model allows you to “lease” the software from Microsoft for a small monthly subscription, meaning you will always have the latest version of Office. Office contains Word, Excel, Powerpoint, Outlook, OneNote, Publisher, Access, InfoPath, Lync.

You can use Office on your PC or MAC, as well as optimized apps for tablets and smartphones. Each employee can download Office on up to 5 PC/MACs and 5 mobile devices.

Windows 2012 Essentials Server

To compliment this, Microsoft have also released “Windows 2012 Essentials server”. In the past you needed to purchase a server powerful enough to run all your applications on-premise (Exchange, Shaepoint etc). Windows 2012 Essentials still provides all the functions of a normal domain controller (file services, print server, anywhere access) but is missing Exchange, Sharepoint. These resource hungry applications are now located in the cloud (Office 365) meaning you can now purchase a much lower spec server. These services are constantly backed up and Microsoft offers a 99.9% financially-backed SLA.


What is the financial benefit to me?

To run Essentials, you only need a basic server, therefore there is an instant saving on server hardware. You also pay for Office365 monthly, therefore avoiding a large one-off bill. In the following tables we highlight a real world scenario – comparing a traditional SBS server, compared to the new offering:

Current solution (traditional On-Premise Solution)

Item Notes Initial Outlay Monthly Costs
SBS 2011 Std server (1) contains 5 CALs 2974.80  
5 pack CALs   330.00  
7 workstations (3)   2469.60  
7 Office Pro 2013 (5)   2590.00  
7 Anti-Virus (Norton)   175.00  
    8539.40  

New scenario (combining on-premise server with Microsoft Office 365)

Item Notes Initial Outlay Monthly Costs
SBS 2012 Ess server (2) contains 5 CALs 1080.00  
CALs included (up to 25)   0  
7 workstations (3)   2469.60  
7 Office365 (4)     70.70
Anti-virus (ESET)     21.00
    3549.60 91.70


(1) Server needs 16GB to run Windows SBS 2011 Standard (which includes Exchange 2010 Std). (Price £2479 ex vat for PE T320, 16GB, SBS 2011 Std, Perc H310, 2 x 2TB SAS, Red PSU, 3yr NDB)
(2) Server needed for Windows SBS 2012 Essentials can be much lower spec as does not host Exchange. (Price £900 ex vat for PE T110 II, 8GB, Perc H200, 2 x 500GB SATA, 3yr Wty)
(3) Workstations = Dell Vostro 270MT, Windows 8 64 bit, 20" monitor, 4GB memory, 500GB hdd, 3 year warranty. £294 each
(4) Office 365 Small Business Premium 2013 £10.10 per user per month includes Exchange, Sharepoint, AD Integration, Lync and Office 2013 full
(5) Office Pro 2013 RETAIL price £370. If purchased with Dell workstation OEM £259
Posted: 25/05/2013 09:38:24