Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    AI and backup: How backup products leverage AI

    Nvidia’s Jensen Huang lobbies Trump administration to sell Blackwell to China

    Cyber Girls First is encouraging girls to study tech at university  

    Facebook X (Twitter) Instagram
    • Artificial Intelligence
    • Business Technology
    • Cryptocurrency
    • Gadgets
    • Gaming
    • Health
    • Software and Apps
    • Technology
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Tech AI Verse
    • Home
    • Artificial Intelligence

      Blue-collar jobs are gaining popularity as AI threatens office work

      August 17, 2025

      Man who asked ChatGPT about cutting out salt from his diet was hospitalized with hallucinations

      August 15, 2025

      What happens when chatbots shape your reality? Concerns are growing online

      August 14, 2025

      Scientists want to prevent AI from going rogue by teaching it to be bad first

      August 8, 2025

      AI models may be accidentally (and secretly) learning each other’s bad behaviors

      July 30, 2025
    • Business

      Why Certified VMware Pros Are Driving the Future of IT

      August 24, 2025

      Murky Panda hackers exploit cloud trust to hack downstream customers

      August 23, 2025

      The rise of sovereign clouds: no data portability, no party

      August 20, 2025

      Israel is reportedly storing millions of Palestinian phone calls on Microsoft servers

      August 6, 2025

      AI site Perplexity uses “stealth tactics” to flout no-crawl edicts, Cloudflare says

      August 5, 2025
    • Crypto

      Japan Auto Parts Maker Invests US Stablecoin Firm and Its Stock Soars

      August 29, 2025

      Stablecoin Card Firm Rain Raise $58M from Samsung and Sapphire

      August 29, 2025

      Shark Tank Star Kevin O’Leary Expands to Bitcoin ETF

      August 29, 2025

      BitMine Stock Moves Opposite to Ethereum — What Are Analysts Saying?

      August 29, 2025

      Argentina’s Opposition Parties Reactivate LIBRA Investigation Into President Milei

      August 29, 2025
    • Technology

      AI and backup: How backup products leverage AI

      August 29, 2025

      Nvidia’s Jensen Huang lobbies Trump administration to sell Blackwell to China

      August 29, 2025

      Cyber Girls First is encouraging girls to study tech at university  

      August 29, 2025

      Zopa Bank seeks partners to form AI skills coalition

      August 29, 2025

      Microsoft refuses to divulge data flows to Police Scotland

      August 29, 2025
    • Others
      • Gadgets
      • Gaming
      • Health
      • Software and Apps
    Check BMI
    Tech AI Verse
    You are at:Home»Technology»The hidden costs of your on-premise software
    Technology

    The hidden costs of your on-premise software

    TechAiVerseBy TechAiVerseMarch 13, 2025No Comments6 Mins Read2 Views
    Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Reddit
    The hidden costs of your on-premise software
    Share
    Facebook Twitter LinkedIn Pinterest WhatsApp Email

    BMI Calculator – Check your Body Mass Index for free!

    The hidden costs of your on-premise software

    Great data automation software creates value. It enables your business to work faster, more efficiently and more cost-effectively. At the other end of the scale, though, is software that bottlenecks progress and eats up resources.

    Cost-cutting continues to dominate the agenda for Operations leaders. It’s therefore important to make sure that the data management, reconciliation or automation software you’re using falls into the former category and not the latter.

    We explored some of the costs of inefficient software in our article on the true expense of supposedly ‘free’ recon tools. But even if you have paid for your on-premise system – do you really know how much it’s costing you?

    Answering that question is difficult.

    Calculating the total cost of ownership (TCO) for on-premise systems is easier said than done, because many of the costs are indirect, hidden, or part of the finance allocation process.

    Licenses, maintenance and hardware are just the tip – there’s a lot more lurking below the surface. Today, we’re going to help you uncover them all, so you can build a transparent picture of the cost of managing data.

    Here’s what else you need to factor into your calculations.

    Chief Product Officer at Duco.

    Unhelpful upgrades

    With a cloud computing platform you effortlessly move from version to version to access new features and performance improvements. But software upgrades and patches are the only way of delivering innovation in an on-premise world – and they cost a lot of money. They are often mandatory and short notice; shorter, at least, than the time it would take you to shop around for an alternate system.

    You often have no choice but to pay to move to the new version (we’ll explore why sticking with what you’ve got is anything but cost-effective later). But it may not bring any additional features and benefits that you need. It may introduce capabilities outside of your use cases, for instance, or perhaps support for a new asset class that you don’t trade.

    One client told us that they recently finished upgrading their ten-year old on-premise system to the latest version. It took them three years and an estimated $5-$10m and they got no value or functional benefit out of it.

    Another client – a smaller firm – budgets $1m every year for upgrades to their on-premise system.

    I know from my own experience how costly and time consuming these types of migrations can be – absorbing focus that could be better spent elsewhere

    Those costs go beyond just the licensing costs for the new system. Changing from one software version to another often means your IT team has to completely rebuild all your processes. Then they and the users have to test them to ensure they still work correctly and none of your integrations have been broken by the upgrade.

    Again, it’s worth pointing out that you may not see any benefits from being on the new system.

    This is change-the-bank money that you’re having to spend, but it’s not delivering any change. It’s the cost of business-as-usual in an on-premise world.

    End-of-life – and beyond

    But what do you do when you either can’t afford to upgrade, or rightly refuse to do so because of the unnecessary cost? In that situation, your software ends up being unsupported.

    The vendor may offer you a premium support package, or you have to hire in extra IT resources just to keep the system working. You’ve just traded the cost of upgrading for the higher cost of keeping your existing software running.

    By this point you have a zombie system – dead as far as the vendor is concerned, and with no spark of innovation left. It shambles along, doing as much of the job as it can manage, while you run around after it, picking up all the bits that have fallen off.

    Are you factoring in the cost of life support for sunset systems into your on-premise TCO?

    Inagility

    The slow and laborious patch management and upgrade cycle means that innovation is a sluggish process in an on-premise world. Time-to-market for change can stretch to months or even years. Firms rely on their IT teams to install software updates, rebuild processes, release them into production environments, and so on.

    This slow time-to-value makes Operations very inagile. This is an acute problem in today’s world. Regulatory change, for instance, is relentless and happening on multiple fronts. How many risks is this introducing to the business? How many opportunities are missed? These are all costs that must be considered.

    There is a way around this for Operations teams, but it’s one that just introduces more cost and risk into the business…

    Endless manual work

    On-premise reconciliation systems exist to help you automate your data. But they often have the opposite effect. The lack of agility explored above forces Ops teams to resort to solving problems manually.

    There’s often an army of ‘Human APIs’ surrounding on-premise systems – people whose job it is to manually plug automation gaps. They perform tasks such as:

    • Extracting data from unstructured formats like emails and PDFs
    • Keying data into systems in the correct schema
    • Copying data into a spreadsheet to reconcile
    • Manually matching (often thousands of) items where the system hasn’t spotted the connection

    All this means that a lot of your resources in Operations are invested into low-value work. Your data experts are handling tedious and repetitive tasks instead of performing valuable activities such as root cause analysis, fixing data at source, or providing strategic insights for the business.

    And that’s to say nothing of the cost of operational risk that manual work introduces to the business, which can result in direct costs such as regulatory fines or errors leading to trading losses.

    Conclusion

    The upfront license fees for on-premise software are just the start of a long tail of costs that snake their way through your operations. Your IT team is responsible not only for hardware and maintenance, but often for actually operating the system.

    This cost only grows if the system is sunset and requires life support. Upgrading is costly and usually mandatory – regardless of how much value, if any, you get out of it. Long change management processes cost you in agility and slow time-to-value. Hundreds or thousands of workers are required to fill the functionality gaps, introducing risk to your business.

    These systems are usually well-entrenched in your architecture, making them difficult to remove. But that’s in a world where you’re replacing one on-premise tool with another. Replatforming to an agile cloud platform is an entirely different affair; gradual, measured and low-risk.

    We’ve listed the best IT asset management software.

    This article was produced as part of TechRadarPro’s Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro

    Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!

    BMI Calculator – Check your Body Mass Index for free!

    Share. Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Telegram Email
    Previous ArticleI’ve been wearing an Apple Watch for 10 years – these are the 5 settings I change right out of the box
    Next Article NymVPN officially launches and claims to be “the world’s most secure VPN”
    TechAiVerse
    • Website

    Jonathan is a tech enthusiast and the mind behind Tech AI Verse. With a passion for artificial intelligence, consumer tech, and emerging innovations, he deliver clear, insightful content to keep readers informed. From cutting-edge gadgets to AI advancements and cryptocurrency trends, Jonathan breaks down complex topics to make technology accessible to all.

    Related Posts

    AI and backup: How backup products leverage AI

    August 29, 2025

    Nvidia’s Jensen Huang lobbies Trump administration to sell Blackwell to China

    August 29, 2025

    Cyber Girls First is encouraging girls to study tech at university  

    August 29, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Ping, You’ve Got Whale: AI detection system alerts ships of whales in their path

    April 22, 2025166 Views

    6.7 Cummins Lifter Failure: What Years Are Affected (And Possible Fixes)

    April 14, 202548 Views

    New Akira ransomware decryptor cracks encryptions keys using GPUs

    March 16, 202530 Views

    Is Libby Compatible With Kobo E-Readers?

    March 31, 202528 Views
    Don't Miss
    Technology August 29, 2025

    AI and backup: How backup products leverage AI

    AI and backup: How backup products leverage AI Software applications often list artificial intelligence (AI)…

    Nvidia’s Jensen Huang lobbies Trump administration to sell Blackwell to China

    Cyber Girls First is encouraging girls to study tech at university  

    Zopa Bank seeks partners to form AI skills coalition

    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    About Us
    About Us

    Welcome to Tech AI Verse, your go-to destination for everything technology! We bring you the latest news, trends, and insights from the ever-evolving world of tech. Our coverage spans across global technology industry updates, artificial intelligence advancements, machine learning ethics, and automation innovations. Stay connected with us as we explore the limitless possibilities of technology!

    Facebook X (Twitter) Pinterest YouTube WhatsApp
    Our Picks

    AI and backup: How backup products leverage AI

    August 29, 20252 Views

    Nvidia’s Jensen Huang lobbies Trump administration to sell Blackwell to China

    August 29, 20252 Views

    Cyber Girls First is encouraging girls to study tech at university  

    August 29, 20251 Views
    Most Popular

    Xiaomi 15 Ultra Officially Launched in China, Malaysia launch to follow after global event

    March 12, 20250 Views

    Apple thinks people won’t use MagSafe on iPhone 16e

    March 12, 20250 Views

    French Apex Legends voice cast refuses contracts over “unacceptable” AI clause

    March 12, 20250 Views
    © 2025 TechAiVerse. Designed by Divya Tech.
    • Home
    • About Us
    • Contact Us
    • Privacy Policy
    • Terms & Conditions

    Type above and press Enter to search. Press Esc to cancel.