Since the widespread application of cloud computing is still relatively new, many enterprises are apprehensive about implementing cloud solutions. For companies with established IT departments and equipment, switching to a cloud setup may sound unnecessary and inconvenient. However, the cloud can provide extensive financial benefits like budget savings and increased workplace productivity. In fact, a recent study from Rackspace surveyed 1,300 companies and found that 88% of cloud users experienced cost savings and 56% noted an increase in profits. Here are several fantastic ways cloud computing can save money.
An advantage of cloud computing is the reduction in hardware cost. Instead of purchasing in-house equipment, hardware needs are left to the vendor. For companies that are growing rapidly, new hardware can be a large, expensive, and inconvenience. Cloud computing alleviates these issues because resources can be acquired quickly and easily. Even better, the cost of repairing or replacing equipment is passed to the vendors.
Along with purchase cost, off-site hardware cuts internal power costs and saves space. Large data centers can take up precious office space and produce a large amount of heat. Moving to cloud applications or storage can help maximize space and significantly cut energy expenditures.
Cloud solutions can also lead to a dramatic decrease in labor and maintenance costs. As a result of the hardware being owned by vendors and stored in off-site locations, there is less demand for in-house IT staff. If servers or other hardware need repairs or upgrades, it is the responsibility of the vendor and doesn’t cost your company any time or money. Eliminating routine maintenance can free your IT staff to focus on important initiatives and development. In some cases, this could even mean reducing staff size. For companies lacking the resources for an in-house IT staff, the cloud will help eliminate costly third party hardware repair bills.
In addition to the outright labor savings, cloud computing can be extremely cost effective for enterprises because of the increase in workforce productivity. The deployment of cloud software is notably faster than conventional installation. Instead of the weeks or months that a standard company-wide installation may take, cloud software deployment can happen in a matter of hours. This means employees can spend less time waiting and more time working. Adoption time is also decreased with cloud solutions. SaaS applications are typically available through a web browser and can be learned quickly and easily. Finally, most cloud storage and software applications are available anywhere, through an internet connection. This is great news for enterprises that rely on travel or telecommuting policies in place.
Typically, cloud solutions are available in a pay-as-you-go pricing model. This format provides savings and flexibility in several ways. Foremost, your company doesn’t have to pay for software that isn’t being utilized. Unlike an upfront license, cloud software typically only costs per user. Additionally, pay-as-you-go software can be cancelled at any time which reduces the financial risk of any software that doesn’t work. Finally, the up-front cost of the cloud is lower than in-house solutions. For companies that need top-tier products but don’t have extensive funds immediately available, cloud solutions provide fantastic flexibility.
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