Database servers and software can run up costs for SMBs. But in today’s era of big data, not using a database solution can mean missed opportunities. A hybrid cloud deployment can lower the total cost of ownership, or TCO, of a data center, according to a new report released today from Principled Technologies.

Principled Technologies compared the cost of a Dell EMC and Microsoft on-premises hybrid-ready solution to an Amazon Web Services (AWS) public cloud with a pay-on-demand approach. The company found that the Dell EMC/Microsoft solution could reduce costs over five years, unlike AWS. PT estimated that this approach could save 46 percent over the AWS approach while running an e-commerce application.

Choosing a hybrid cloud deployment

SMBs do need to weigh their operating budgets, ability to make large capital investments and technology needs carefully. However, a hybrid cloud deployment may make sense for the data center. SMBs will need to invest in some new hardware. The advantages of the cloud are still there with the hybrid cloud: scalability, in particular. Hybrid cloud deployments can still scale, like their public cloud counterparts, to meet increasing demand for workloads and changing business models. Additionally, they may appeal to companies with security concerns, such as those in regulated industries.

In fact, compliance and security may be two big reasons to keep part of the data center on premise. Some companies need to limit the number of geographic locations of their data centers. Others may need to keep some data on-premise, like sensitive financial or trade information.

The choice between a hybrid cloud deployment or a public cloud will come down to the level of acceptable risk. As with any technology solution, cost should not be the primary driver. Instead, what the technology can do for the SMB to help it meet its goals needs to be considered. The e-commerce example provided by PT may help SMBs identify loyal customers or provide better offers to their customers. It’s worth serious consideration, depending on your available resources.