Cloud Computing or On-premise: Before you opt for cloud computing services, what is essentially required is to calculate the cost of deploying cloud computing. Compare which option would be better for your company: cloud computing or on-premises. This depends on the criteria of how large your company is and what kind of software and networking is required for it.
 

Enterprise assessment: Having said that, the TCO of cloud deployment also depends upon the kind of company. Such as, you might benefit from the security services that cloud computing provides, but do you agree with the databases and software that it provides? Search thoroughly before you finalize a cloud computing service provider.
 

Security: The cloud computing provider should provide your enterprise with the security of your data. Data breaches and hacking has been one of the biggest expenses for various companies in recent years, and this aspect should be assessed thoroughly while calculating the TCO of cloud deployment.
 

Efficiency: While calculating TCO, businesses look for cost-saving options. But in the case of cloud computing, one should keep in mind the fact that cloud deployment is efficient and quick, enabling a business to be up and running in no time. The applications and files can also be accessed from anywhere.
 

Flexibility: Cloud computing is also flexible. You can change the services that you require and their scale according to the changes in the community. It is also accommodating to the workforce that is not located centrally, such as people who work from home or remotely.
 

Infrastructure: When deploying cloud computing, old hardware, data centers, servers, software, etc., needs to be replaced to accommodate cloud computing. The cost of replacement is also to be considered in the Total Cost of Ownership of cloud computing.
 

Human resources: Before deploying cloud computing, one needs to consider if they would require specialists and a new workforce dedicated explicitly to ensure the proper functioning of cloud computing. These skill-sets need to be included in the TCO of cloud computing.
 

Backup: Service providers can go through technical crashes that may result in loss of the essential data. If the provider does not avail you of data backup, the company has to go through loss due to loss of data, which is an indirect expense of cloud computing.
 

Customization: The software that is supplied by the cloud computing provider may need customization according to your enterprise, and this costs money. One should negotiate and decide to what degree do they need customization in software and applications provided.
 

Compliance Issues: When you move your data from your internal storage to a cloud, it is not private information anymore. This results in problems in compliance. Especially in the health and financial sector, one has to remain compliant with the rules and regulations regarding data of an enterprise. This requires management of the data on the cloud and hence, costs money, which should be included in TCO.