IT infrastructure for 30 workstations: the cost reality behind "Cloud-First" in Bavaria

Cloud-First has been the default promise for several years when IT projects are discussed in the SME segment. Less hardware, less maintenance effort, scalable, available everywhere. All correct. And yet, after three years of Cloud-First, reality can look very different from what was in the offer.

Over the past two years we have analysed the running IT costs in detail at three mid-sized companies in Bavaria — between 25 and 40 workstations. What came out of it surprised us in some respects.

What Cloud-First really costs — figures from practice

Companies of this size pay between 85 and 130 euros per workstation per month for a complete cloud infrastructure with Microsoft 365 Business Premium, cloud backup, MDM, a cloud-based telephony system and a helpdesk tool. At 30 workstations, that is 2,550 to 3,900 euros per month — so 30,600 to 46,800 euros per year, purely for ongoing licence costs, without hardware, without consulting.

That is not an accusation against cloud providers. These figures are transparent, the services are real, and for many companies it is the right choice. But it is a cost dimension that is often underestimated in initial conversations.

For comparison: the same company with a local server, Hyper-V virtualisation, on-premise Exchange or a comparable solution typically has higher initial costs (server hardware 8,000 to 15,000 euros, setup 3,000 to 6,000 euros) and lower running costs — depending on the software stack between 30 and 60 euros per workstation per month.

Where Cloud-First has clear advantages

That doesn't mean on-premise is always cheaper. Three factors clearly speak for the cloud:

Location independence. Anyone with employees in the home office or frequently on business trips benefits from cloud infrastructure without their own VPN configuration. An office in Bavaria, employees in Munich and Hamburg — here the cloud is the significantly easier path.

Resilience. A local server without redundant power supply, without standby hardware and without qualified support is a risk. Anyone who cannot or will not invest the funds for a proper redundant infrastructure is better off with a professional cloud provider.

Scalability. If the company grows quickly — new employees, new locations, acquisitions — the cloud is significantly more flexible. Instead of buying server hardware that then sits around for two years for the next expansion stage, you only pay for what you currently need.

The hidden costs that are rarely discussed

What is often missing in cloud conversations: transit costs. Anyone pulling large data volumes out of the cloud — backups, video conferences in high quality, CAD data, large production files — eventually pays egress fees. Not with every provider, not at every volume — but it is a line item that can show up in mid-term cost calculations.

In addition: if all services are in the cloud and the internet line goes down, the company stands still. Local workstations without a fallback concept are a real risk under complete cloud dependency. We always recommend a secondary line — either as a backup via LTE/5G or as a second DSL connection from another provider.

What we recommend in practice

For companies of this size in Bavaria, a hybrid solution is often the most sensible answer: core communication and collaboration (email, Teams, calendar) in the cloud, sensitive production data and internal applications on-premise or in a German data centre. That combines the advantages of both worlds without taking the disadvantages of either to their full conclusion.

We plan and operate both approaches — and we are not a reseller of a single provider, which allows us to give an independent recommendation. On our IT Networks & Infrastructure page we describe our approach. Anyone who wants the costs of their current IT infrastructure assessed can also contact our IT consulting area directly.

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