Predictable & Cost-Efficient
Cost savings are clearly one of the main reasons why companies are migrating to the cloud. It’s important to understand the implications of the migration and its potential positive impact on your company.
Some of the cost savings include:
No Large Upfront Capital Investment
With cloud computing, you no longer need large upfront capital to purchase the hardware and software to run your network. In most cloud environments, these costs and the expense of maintaining your network are included in a flat monthly fee. In addition, it’s the cloud provider’s responsibility to upgrade the server and network—with no added cost to you—eliminating big expenses of future upgrades.
Predictable IT Costs
One of the main advantages of cloud computing is the predictability it brings for companies. Continual software upgrade fees, replacing outdated servers and other variable costs are virtually eliminated with cloud computing. Most companies that have moved to the cloud greatly appreciate the consistency and predictability of a fixed monthly fee for their IT needs and the use-based costing.
Reduce Spending on IT Operations
When a business is operating in the cloud, the cloud vendor takes on nearly all of the costs of installing, running and maintaining the applications, the underlying software infrastructure and the associated hardware.
Reduce Spending for IT Support
Hosting your business applications in the cloud means you no longer need to install and set up software across your business yourself. By outsourcing your IT needs, you may no longer need the same levels of in-house technical expertise, which will allow you to focus more on your core business.
Savings Gained Through Higher Worker Productivity & Greater Efficiency
Cloud computing typically offers higher working productivity because the network is always on and users can connect to the network from any device (iPhone, iPad, laptop, home desktop, etc.). Because workers can access the system anytime and anywhere, they typically get more done than working only in the office during normal business hours.
Rather than having to account for software and hardware as a capital expense, and then having to depreciate it over time, a business using the cloud subscription-based model can consider those expenses operational and deduct them every year.
As you can see, cost savings are clearly one of the main reasons why companies are migrating to the cloud.