Economic Benefits of Moving to the Cloud

Why should you consider moving to the cloud? Does it have any economic benefits to your company or business? Well, online cloud storage solutions such as ex load would not be popular the way they are today if there were no economic benefits. The many financial benefits of moving to cloud are one of the reasons more and more businesses and offices are moving to the cloud.

Financial benefits

Besides business security, cloud computing can actually be used for nearly all types of applications. Even though the idea of moving and operating “in the cloud” may at times seem had to grasp for most people, what  is clear is that it saves its users a lot of money, especially small businesses, including home/small office.  Here are some of the reasons operating in the cloud will save you money:

Scalable hardware means that you only pay for what you use

Naturally, cloud computing brings the economies of scale. Instead of using a dedicated sever which you own, pay for, and maintain regardless of demand, cloud computing is practical in that your workloads will share the server infrastructure with computing needs of other organizations. This allows the cloud-computing service provider to optimize its data center’s hardware needs. This means that you will not be paying for idle infrastructure and this results in lower operation costs.

Reduced energy cost

Cloud computing typically uses less electricity. That is an inevitable result which comes with scalable computing – optimal utilization of hardware means more efficiency in power use for your business. Running your own data center means that your servers will not be utilized fully. Idle servers tend to waste a lot of energy, and this means that regardless of demand, the charges for energy that a cloud service provider will charge you is less than what your own data center will cost you.

Zero upfront costs

If you decide to run your own servers, you will have upfront capital costs. This is not the case with cloud computing. In a cloud-based model, it is someone else’s problem to finance that capital investment. 

Granted, when running your own servers, accounting wizards will do their amortization magic that makes it seem as if the cost gets spread over the life of a server. However, that money must still come from somewhere. This is capital that cannot be invested in your business,  whether it’s  a line of credit or money. With cloud-based computing, there is far less variability in cost even as your business scales and this removes a significant barrier to growth.

Streamlining workforce will help save money

Staffing budget is one line item that can make up even more than half of the total operational cost for a company if computing costs of an organization is analyzed. This amount is high because good IT people demand high salaries besides benefits and other employment costs. When you move your IT services to the cloud, you will not only be able to downsize your current IT staff, but you will also be able to provide the operations of your IT department by deploying IT staff to other important areas of your business. This will greatly improve your bottom-line capabilities.

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