AWS allows organizations to avoid the up-front costs of buying and deploying server, storage, and network infrastructure. Further, they reduce ongoing costs associated with running IT environments, including licensing, power, and facilities costs. IDC report shows that organizations which have switched to AWS save an average of $1.76 million per year (Larry & Matthew, Febuary 2018). The “Five-Year Cost of Operations Using AWS” chart shows that study participants have had a 51% lower overall five-year cost of running their enterprise workloads with AWS versus comparable on-premise environments when considering the total IT infrastructure costs/AWS fees, IT staff costs, and unplanned user downtime costs (Larry & Matthew, Febuary 2018).

Five-Year Cost of Operations Using AWS (Larry & Matthew, Febuary 2018)

Further, the IDC calculates that businesses using AWS see a 31% lower five-year cost of infrastructure versus a comparable on-premise infrastructure (Larry & Matthew, Febuary 2018). These costs included licensing, power and facilities, and hardware costs, compared with AWS fees.

Five-Year IT Infrastructure Costs Using AWS (Larry & Matthew, Febuary 2018)

Blog post series.
1. Benefits of AWS
2. IT infrastructure cost reductions
3. IT staff productivity benefits
4. Risk mitigation - User productivity benefits
5. Business productivity benefits

References:

Larry, C., & Matthew, M. (Febuary 2018). Fostering Business and Organizational Transformation to Generate Business Value with Amazon Web Services. IDC. Retrieved from https://pages.awscloud.com/rs/112-TZM-766/images/AWS-BV%20IDC%202018.pdf?aliId=1614258770