The Cost Savings Of Cloud Computing


By Matthew Reeve on 17th June, 2019.

How the cloud can save your business money

Apprehension over switching to the cloud is understandable. With legacy infrastructure and IT departments keeping the machine well oiled, it’s hard to understand the benefits and need for cloud adoption without ever experiencing a different IT model to the one currently in use.

But cloud computing can offer many businesses and individuals so much more than their current IT solutions. We’ve covered these extensively in a previous blog, here, for those looking for a complete breakdown of the benefits. But in this post, we will be focusing specifically on the cost efficiency the cloud can bring and subsequent savings for those who make the transition.

A recent survey revealed 94% of respondents said the cloud would reduce their costs, with 47% highlighting an estimated overall drop in capital expenditure on IT services between 30-50%. But how could the cloud represent such extensive savings? Let’s take a look.

Flexible Model

Cloud computing models are typically billed on usage and use a pay-as-you-go model. This model with the right cloud provider means you shouldn’t ever pay for resources you aren’t using and offers the end user the flexibility to add or reduce any cloud services to align with business requirements. Capital investment into software and licenses should be removed, as well as the on-going cost of hardware upgrades.

Reduced Overheads

A cloud platform can cut unnecessary capital spending on in-house infrastructure and hardware. Not only can this require a huge initial investment, but the on-going maintenance costs and constant need for hardware updates and refreshes can prove to be financially detrimental in the long run. Equipment in this field also depreciates at an alarming rate with advancing technologies pushing the demand for new, rather than old.

Recruitment Reshuffle

By reducing in-house infrastructure and maintenance requirements, this will in turn remove the need for extensive IT personnel. This decrease in workload demands saves money on recruitment and wages, and a smaller IT team can be deployed to focus on the remaining strategies and management. For smaller companies without the technical expertise, cloud computing can provide a particularly effective solution to their IT requirements.

Energy Efficiency

The expense of running your own equipment and infrastructure on premise can be financially detrimental, and often be difficult to run at optimum efficiency. Not only in terms of man power, as discussed above, but also the raw power required can lead to extortionate energy bills. It’s also extremely unlikely any in-house alternative will match the facilities and service of that of a cloud provider operating out of a purpose-built industry standard data centre. Through the vast economies of scale, cost savings can be passed on to the end user and provide a cost-effective solution to the running costs of legacy infrastructure.

Redundancy

As mentioned earlier, at some point your hardware will have to undergo hardware refreshes. When this happens, you’ll need backup equipment to move your data over to and take over. On top of this, it’s good practice to have at least one set of redundant backup components in place in case of an emergency. Essentially, you’ll have to buy twice, and in the event of power grid failures you’ll need battery backups, as well as fuel generators in case the failure is prolonged. Cloud computing and outsourcing to a professional hosting provider with a data centre facility removes the need for this.

Improved Productivity

Through shifting IT solutions to the cloud, workloads and workforces can become consolidated and optimised. This in turn offers improved business efficiency and can increase productivity. Previously labour-intensive and time consuming manual tasks can be handled through virtual management portals by your own IT team or cloud providers, allowing users to add or remove resources at the click of a button, and cloud-based software can be deployed quickly and conveniently.

We hope this blog post has been useful and you understand the cost effectiveness of adopting the right cloud platform for your business. Head back to the blog for more insights and expertise. As always, if you have any questions regarding this post or any of Secura’s services, please don’t hesitate to get in touch.


Matthew Reeve

Content Executive

Matthew is Secura’s content specialist, producing gripping, emotionally complex, edge of your seat, cloud hosting articles and videos.

Tweet me at:
@securacloud