As the world becomes increasingly mobile, your company’s information resources should be able to follow suit. Cloud Computing has become an innovation revolution for technology, and has proven to be a major break-through for business capabilities. For some, saving money is a deciding factor in making the move to the Cloud. Here are 5 ways the Cloud will save you money:
1. Economies of scale – Cloud computing companies can utilize economies of scale to offer cheaper rates to your business. In other words, the service providers can buy IT equipment in bulk to lower unit acquisition costs, and some of these cost savings are passed on to their customers. Consequently, this price is much lower than what you would pay to buy similar equipment from the retail market.
2. Pay as you use – Cloud computing companies operate on a pay-as-you-use model, or in other words, a demand-only model. As a business availing of cloud computing services, you only pay for the services you require and use. This works out to be much cheaper than acquiring equipment you hardly use.
3. Running costs – Often, running costs comprise a big chunk of the annual IT budget. They include physical maintenance, upgrades, personnel salaries, etc. By shifting to cloud computing, you are free of such expenses.
4. Operational costs vs Investment costs - When you acquire expensive equipment, that’s considered a capital expenditure, and a big one at that. Also, your acquisition depreciates over time. With cloud computing, your one-time expense is spread across several operational cycles, becoming part of operational costs. As any corporate finance professional will tell you, this is a much better alternative. Factor in the time value of money, and the balance shifts even more towards cloud computing.
5. No more downtime. Employees will no longer have to spend their time closely monitoring and fixing servers, resulting in more time for productivity. Say no to the break-fix model, and welcome the managed services model with open arms
Smart business decisions mean making the right choices when it comes to technology. Key considerations like cost effectiveness, accessibility, and security should drive decision-making. It’s very possible you’ll realize that moving to the cloud and transitioning to a cloud-based business model is the right decision for you and your business.