Re: $106k over three years
I guess the main thing is at some level you are swapping capex for opex. A lot of accountants/companies like this. And okay you can do leasing deals on hardware, but often this is seen as borrowing on the companies books and even if can be tuned (financially) to be pure opex, you cannot turn up and down costs as easily as Cloud/SaaS.
Not saying this is right, but some companies run on thinking it's being better to own nothing. And probably think they don't need as many IT staff to run this.
Will cost more in the long run, but doesn't matter as they didn't get a big bill upfront and have to get that approved (maybe by the board).
I have heard the phrase "Cloud Shock", when an accountant wakes up and suddenly sees how much all these cloud things are costing. I have heard of cloud companies who suddenly find they are sending 25% of turnover to Amazon, as it was so easy to spin up things.
We are just in a new Cycle of Reincarnation, mainframe -> Client Server -> Cloud (mainframe again really) --Probably--> in house some things (when people start seeing the costs of all this)
Biting the hand that feeds IT
