Hosted Desktop vs. On-Premise: a total cost of ownership comparison

Your Cloud Works

IT Security & Support Specialist for Small and Medium Businesses


A cloud solution has the capability to offer the majority of SMEs great financial benefits over that of an on-premise infrastructure, this is particularly true of a hosted desktop solution.

The hosted desktop solution, provided by Your IT Works, delivers a Windows desktop, Microsoft Office, Exchange/Outlook and business applications as a hosted service, rather than using local (on-premise) infrastructure. This means that an organisations servers are migrated to a secure data centre, allowing users to access their hosted desktop, business data and applications via a web browser on any device, anywhere, at any time (internet connection required).

This business model can generate a substantial return on investment (ROI), below is an example of how and where these savings are made.

Easy Law Ltd, a fictional legal SME, has 10 users with an average salary of £36,000 and annual turnover of £1.5m. The comparative solution supports 10 desktops and laptops, 5 tablets, and 3 servers, including managed IT support services, anti-virus, email filtering, 150GB of data back-up and a VoIP telephony system.

Below is a summary of the costs associated with an on-premise solution.


As the above table shows, Easy Law Ltd would incur a capital expenditure of £46,592.00 and an operational expenditure of £184,487.00 over a 6 year period. This can be compared with the hosted desktop solution, as per below.


Therefore, Easy Law Ltd sees a significant reduction in costs with a hosted desktop solution; total capex is £15,501.78, and total opex is £71,109.80 over 6 years.

The gained revenue and savings are calculated from a number of areas. This includes the increased financial flexibility, specifically saved through Easy Law Ltd only needing to purchase the resource it requires, as opposed to supporting additional unused server space and resource with on on-premise solution.

Additionally, this is joined by the increase in productivity. As a minimum, businesses that migrate to a hosted desktop solution gain an additional 5 days of productivity per staff member per year, reasons including the fact that the business will no longer be impacted by disruptions such as rail strikes and snow, maximisation of access to systems and data and truly useable remote working opportunities.

Revenue and savings are also gained through less downtime and exposure to data loss and management inefficiencies, as well as gaining superior security and the minimisation of risks associated with owning and managing on-site technology.

The below table sets out the overall ROI.


By migrating to a hosted desktop solution Easy Law Ltd makes a total ROI of £31,090.22 for its capital expenditure and £113,377.20 for its operational expenses. A significant gain that can be funnelled into other areas of the business that need it most, with the potential to accelerate growth.

As part our aim to assist businesses in realising larger ROIs for technological investments, Your IT Works, has developed a comprehensive TCO tool.

To find out more about how a cloud solution could impact your organisation contact us here.

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