With traditional information system the investment costs of building such a large system would be from tens to hundreds of thousands of euros. Traditional systems require multiple application servers, data storage, networking and security infrastructure as well as the environmental protection (air conditioning, UPS). The investment includes training costs and education of skilled staff, which is essential for maintaining the required quality of information systems. When placing IT into the cloud, all costs are included in regular service charges according to contracted services. The possibility of eliminating investment costs is particularly attractive when preparing the financial plan as it is more simple to defend the operating costs than reasoning and justification high investments into IT. Senior executives very often perceive informatics as an unwanted child. Although they are aware of its importance, they find it bottomless crunching heavy investment and current IT operation “does not generate” profit. On the contrary, they consider operating costs inevitable for financing the operation of the company itself. This is why operation costs are approved much easier. These costs traditionally include wages of professional staff, energy costs, royalties for the use of software, these may include costs for rental of premises (if the company does not own the premises), telecommunication charges (network access, phone service staff ), or other specific charges, depending on the specific circumstances of the company (e.g., company car etc.). In case of putting IT into cloud almost all operating costs are projected/included in the regular service charge according to the contracted scope of services .
In case of IT operation in cloud, the above list of cost items may not contain telecommunication charges. Reliable broadband telecommunications connection is a prerequisite for the functioning of IT in the cloud