In atraditional datacenter thecost ofincreasing thescale ofcomputing environment is much higher than a Cloud computing environment. Also in a
traditional datacenter, thereare notmuch benefits ofscaling down the operationwhen demand decreases. Since most oftheexpenditureis in
capitalspent of buying serversetc., scaling down justsaves powercost, which is very lesscompared to other fixed costs.
Also in a Cloud environment thereis no need to higheralarge number of operations staffto maintain the datacenter. Cloud provider takescare of
maintaining and upgrading theresources inCloud environment.
With atraditional datacenter, peoplecost is very high since we haveto hirealarge number oftechnical operation peoplefor in-house datacenter.
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