Cost reduction - the #1 driver for a move to cloud

Caroline Wigley
Tags: Cloud Adoption

For years, you’ve been tackling the same IT budget problems: hardware refreshes, maintenance fees, software licensing fees, and personnel or service outsourcing costs. What if we told you that moving to a cloud environment can reduce some of these costs and do away with many of the others altogether?

Cloud environments run your software applications on someone else’s computers, which brings big savings. According to a survey by Bettercloud, cost reduction is the number one driver for IT departments shifting to a cloud infrastructure, at 59%. They’re drawn by the promise of lower operating costs.

Hardware savings

One of the clearest such savings in cloud computing is the cost of hardware. Moving your productivity applications into the cloud saves you buying the server equipment to manage your files and run your applications. Instead, it all runs on the cloud service provider’s own equipment.

This means a reduction in capital expenditure. You can eliminate large up-front investments in servers, pleasing the financial controller who has to approve the IT budget. Instead, you shift your computing model to an operating expense, paid for with a simple, predictable monthly fee.

Save on setup

Moving away from on-premises infrastructure also eliminates another cost: design and deployment. You no longer need expensive, hard-to-find experts to configure the hardware, storage, and networking for your software applications. It’s far easier to configure business applications in the cloud.

The other big saving comes later on, in expandability and upgrades. Companies using their own equipment to support their business applications must buy more equipment as their business grows. They must buy this extra storage and computing capacity in expensive blocks that often leave them paying for capacity they don’t need.

Instead, the cloud lets you add user accounts instantly and incrementally. The service provider looks after it all for you, supplying exactly the storage and computing capacity you need so you only pay for what you use.

Keep on saving

Once you’ve switched to the cloud, you’ll find that the cost savings from cloud computing are ongoing.  

You won’t need in-house professionals to manage and maintain servers anymore. The cloud service provider does this heavy lifting for you. You also reduce the risk of downtime when servers fail, reducing the cost of lost productivity.

A cloud environment can transform your IT spending and generate other financial benefits that will resonate throughout the rest of your business. Talk to Cobweb today about how to get started.



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