Cloud computing provides not just one, but many financial benefits to businesses that are hard to ignore. These savings can be appreciated by businesses large and small, and in any industry. By switching to cloud computing, an organization can save time, money and energy that can instead be focused on improving and growing the business. Let’s learn about five areas in which the cloud can save money.
1. Pay As You Go
With the cloud’s unique pay-as-you-go model, businesses are charged based on the resources they actually use. This is different from traditional computing, which requires organizations to guess which resources they will need and pay all costs upfront. With the cloud, you don’t waste money. The costs will perfectly match up with your usage.
2. Fully Utilized Infrastructure
With traditional computing, hardware often is underutilized, or organizations realize they don’t have everything they need. This is because of the CapEx model that is used. Since resources are paid for upfront, businesses have to guess how much they need, and often end up overspending on hardware that is ultimately underutilized, or not purchasing enough and having to redo the process. This is a huge waste of both time and money that could be focused on strategy and business innovation.
With cloud computing, on the other hand, businesses don’t have to deal with that issue. The provider deals with the costs of infrastructure, as well as installation, maintenance and management, which means that a business gets to avoid these responsibilities and these costs.
3. Save on Software
Cloud software is both easier to use, and more affordable. Businesses can easily transfer over their existing applications when they move to the cloud, or they can subscribe to new ones via the Internet. This subscription model allows organizations to stop using a software they aren’t happy with without wasting money. Businesses won’t feel obligated to keep using an unproductive application because they won’t be paying huge amounts of money upfront. Additionally, many cloud software providers offer free trials, allowing organizations to test programs before financially committing. And by working with a cloud provider, the upfront costs of licensing and upgrades can be eliminated. Installation can happen in a matter of minutes or hours, rather than days or weeks, which means there’s little to no interruption to your business, and a minimal learning curve.
4. Simple Devices
One of the major benefits of moving to the cloud is the ability to access data and applications from anywhere in the world, using any Internet-capable device. This means that organizations today don’t need to be wasting money on the fanciest computing equipment for their office space. Instead, they can use the devices that are already in place, or allow employees to bring their own, while actually experiencing higher levels of accessibility, productivity and mobility.
5. Save Power and Space
As hardware and infrastructure responsibilities and ownership move to the cloud provider, organizations will see huge savings in energy and space costs. With fully utilized hardware, much of which will most likely be located in the provider’s data centers, businesses will no longer experience high power and equipment costs or wasted office space.
Want to keep learning about the financial benefits of switching to cloud computing? It doesn’t stop with these five! Take our new course, Financial Benefits of Cloud Computing.