Godsend, really? Basic Math Says NO
Small Business of 50 Users.
You say £29/user/month....ok, let's go through this.
So, £29 x 50 users x 12 months = £17,400K ....whoa! And that's just for one year.
The solution he mentioned was still going to be under £15K TOTAL, and will most likely run for more than 12 months....say, a three year lifespan
Sooo...the local solution will cost a ~£15K TOTAL one time charge. In most businesses, at that cost, this item can be claimed as an asset, thus allowing for insurance coverage in the right setting. Also, some small businesses DO handle sensitive information, and if someone could hack that cloud provider, then the COMPANY, not the CLOUD provider, would be liable....Yes, the cloud provider SHOULD be responsible, but we all know how the LAW has kept up with TECHNOLOGY. Until this is changed, expect nobody handling sensitive data to give a rat's ass about the cloud.
Or, you can pay 17,400K/YEAR for the cloud version, thusly making the TCO with a three year lifespan roughly £52,200. Compared to ~15K for an onsite solution...hmm...
If the one-time fee is too high, then perhaps these smaller business should actually have a BUDGET PLAN.
I just don't see it.