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Building a Redundant On-Premise Network: The Essential Components

Writer's picture: Cloud GuruCloud Guru

Updated: Jun 29, 2023

In the finance industry, network downtime can be costly and even disastrous. Building a redundant network can mitigate the risk of downtime and keep your business running smoothly. The essential components of a redundant on-premise network include redundant core switches, redundant routers, redundant firewalls, redundant SANs, at least two servers with virtualization technology, and backup power.


But what if you want to move to the cloud? The costs of building and maintaining an on-premise redundant network can be significant. Moving to the cloud can offer cost savings, scalability, and accessibility.


Let's look at the ballpark figures for a 5-year projection. For an on-premise network, the initial cost could range from $50,000 to $150,000 or more, depending on the size of your business and the complexity of your network. The annual maintenance and support costs could be around $10,000 to $30,000 or more, depending on the level of support you require.


On the other hand, a cloud-based network could cost anywhere from $10,000 to $50,000 per year, depending on the services you require and the level of support you need. The initial setup cost would be lower than an on-premise network, and the ongoing costs would be more predictable.


It's important to note that financing options are available for both on-premise and cloud-based networks. In the first year of the on-premise network, the cash flow impact would be significant due to the high initial cost. With cloud-based networks, the cash flow impact would be lower, but the ongoing costs would be spread over time.


In summary, both on-premise and cloud-based networks have their advantages and disadvantages. When considering the best option for your business, you should weigh the costs and benefits of each approach. A 5-year projection can help you make an informed decision.

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