A pay-as-you-go model reduces investments in large capital expenditures. In addition, you can reduce the operating expense (OpEx) costs involved with the management and maintenance of data. This frees up budget, allowing you to quickly act on innovative initiatives that can’t be easily pursued when managing CapEx.
There is a Total Cost of Ownership (TCO) Calculator here on the AWS website:
The TCO calculator will allow you to estimate the cost savings when using cloud hosting such as AWS.