Performing cost analysis on cloud versus traditional recovery can seem like an overwhelming task, but it’s really not that hard. The first step is to calculate what the overhead for your traditional data centers and backups cost you today. Your accounting department likely can give you all of this. Using depreciated values is not a bad idea for looking at annual costs. Be sure to include things like: battery and UPS, fire suppression, generators, server equipment and racks, routers, hubs, switches, cabling from server to server, the cost to install, configure, and maintain the servers. Costs of upgrades and not least, the current costs you’re paying for backups, tapes and RAID. Then, there are the utility usage costs for network access, power, heating and cooling.