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Commercial Clouds Do Not Always Create Savings

• Differences in cost can arise even when the overarching framework (such as utilizing a commercial cloud vendor) is the same.
• Claims that moving to a cloud-based system is automatically cheaper cannot be taken at face value, as savings depend heavily on program requirements and the provider's pricing structure.

Costs Shift from Hardware to the Service-Level Agreement

• Cost estimators may benefit from observing how individual cost elements change as a percentage of the total program cost across the alternatives.
• The majority of the difference in software maintenance costs stems from licenses for software, rather than development.
• Facilities, leases, and service-level agreement costs rise when using an outsourced data center provider. Hardware disposal costs decrease for the program when the data center is outsourced.