There are a variety of other expenses associated with an on-premise environment considered indirect expenses. These expenses are often referred to as “hidden” expenses due to how often they are overlooked rather than “hidden.” These include:
The real estate of the storage space used for the servers
Tools used for temperature control in the data center
The cost of set up, configuration, and ongoing upgrades
Staff salaries for administrators that maintain an on-premise data center
Networking infrastructure set up and ongoing maintenance
The cost of downtime while the team troubleshoots the issue
Productivity lost when the system experiences downtime
The cost of keeping the servers powered 24/7
Depreciation of the hardware and software
Time spent on disaster recovery
Administrative costs associated beyond IT staff such as HR, purchasing, financing, and other departments.
https://pmsquare.com/analytics-blog/2022/6/9/calculating-on-...