Before, cloud computing companies used to have their own data centres. Companies used to have mainly two types of expenditure on servers, Capex & Opex.
- In order to purchase the servers, it was quite expensive. Even renting wasn’t an option either, As it was also quite expensive.
- Once a purchase order is placed for the servers, it takes a couple of months of lead time to get the servers into companies data centres.
- It was required to maintain specific temperature for these servers and hence we used to place these servers in a separate room or a building with controlled temperature.
- In order to maintain these servers, we would require 24/7 power supply and air conditioning.
- Separate admin team was required to setup, configure and maintain these servers.
- In case of any issues with the servers there was an outage/downtime on application. If application is down then business is down and hence loss to companies business.