How Cloud Computing Can Save Your Company Money

By Ryan Hendrie | 28th May 2015 | 5 min read

Cloud Computing is a fast growing industry that allows businesses to store, manage and organise data that can be accessed from anywhere via the internet. It’s for this reason that Cloud Applications are quickly becoming the go-to option for many of today’s top businesses. However, as Cloud Computing is still in its infancy, many businesses, business leaders and new enterprises are apprehensive about adopting cloud solutions.

For many companies with pre-established procedures, systems and IT infrastructures, moving to ‘The Cloud’ may seem like an unnecessary expense and logistical inconvenience. Nonetheless, it would be foolish for any organisation to dismiss the cloud outright, as utilising its potential can offer huge operational and financial benefits, whilst providing organisations full access to all their critical business data and information with a minimal spend on technology infrastructure.

Within this article, we look to explore the various ways that cloud computing can help organisations achieve significant cost savings.

Lower Hardware Procurement Cost

One of the main draws of cloud computing and cloud-based services is that capital expenditures can be reduced. Instead of having to purchase costly in-house hardware, operating systems and equipment, all these requirements are handled by the cloud providers.

Unlike traditional software models, with cloud solutions no licencing fees are required helping to drive down initial set up costs. Plus, as updates, upgrades and software enhancements are carried out by the cloud vendors, businesses can rest assured in the knowledge that they’ll always have the most up-to-date version of the software available to them without having to incur any of the cost involved in upgrading the software or infrastructure.

Reduced Maintenance and Labour Cost

With cloud solutions, companies are able to achieve significant economies of scale through lower maintenance, labour, support and running costs. As all the servers, hardware and equipment are managed by the cloud vendors, organisations have a lower requirement for large in-house IT departments.

Any issues with the hardware is maintained and managed by the vendors, so if repairs or upgrades to the hardware are required, it is the responsibility of the providers to make sure the relevant changes are implemented. This not only offers great cost saving benefits, but in many cases it also allows organisations to streamline their own IT workforce. Furthermore by reducing the burden of hardware support and maintenance, this will enable an IT department to focus on other IT requirements, initiatives and help improve efficiencies.

Improved Reliability

Cloud solutions are often hosted on secure servers and store their client’s important information at highly secure data centres. This can make cloud computing a more reliable alternative to the traditional on-premises alternatives.

Cloud services store the business data of multiple enterprises, so invest in highly trained, efficient and experienced IT staff that are capable of solving and overcoming any IT issues that may occur. Alternatively, with the traditional approach, all the costs of employing a highly skilled IT workforce, as well as encryptions and firewalls, to overcome these hardware issues, all rest with the organisation.

Reduced Operational Cost

With the cloud providers managing all aspects of the software, servers and hardware, this allows organisations to enhance their operations and improve efficiencies, whilst maintaining a lower dependency on a large workforce.

Without the extensive expenditure of setting up and running complex IT infrastructures, companies can reinvest the money saved on improving operational efficiencies and focus on their core business objectives. For companies wanting to utilise software without having to invest heavily in technology, looking towards cloud solutions is the only viable alternative.

Improved Productivity

Hosted cloud solutions allow users to focus on their core business as opposed to learning, supporting and maintaining the software platform itself. Adopting cloud software encourages companies to utilise efficient workflows and processes, leading to improved internal systems and productivity. Furthermore, as the software infrastructure is already pre-established, set-up speeds are extremely quick and users can expect to be fully operational in a matter of hours as opposed to weeks or months which is the case with traditional alternatives.

The nature of cloud solutions means that the software can be accessed from anywhere in the world from multiple devices as long as there is access to a suitable internet connection; meaning that companies are no longer shackled by static applications, like excel. This can have a number of positive implications, such as improved communication between multiple business locations globally and easier access when telecommuting. With a greater demand for meaningful information and a strong calling for efficient and affordable business tools that can be used on the go, organisations are expecting their workforce to be as proactive out the office as they would in the office. With cloud computing, this is becoming a reality.

Eliminates Capital Cost

Most cloud vendors operate on a subscription, pay-as-you-go or usage based pricing structure, meaning businesses will only ever pay for what they need.

With traditional options, enterprises would have to purchase the entire software package, regardless of whether they require the full functionality or not. Additionally, on top of the initial purchase price, companies have to purchase the license fee providing them with the legal rights to use the software on their internal systems. With cloud solutions the initial upfront cost are significantly lower as companies have more payment options; they only have to pay for the usage or package they require, without additional licensing fees.

Companies that opt for the traditional approach of having their own internal hardware, servers and equipment have to tackle high up-front capital costs. However, with cloud computing, all the capital investment is the responsibility of the vendors. So for companies requiring powerful software solutions but without the high capital risks, cloud solutions are the perfect answer.

In today’s modern world, enterprises are increasingly dependent on technology to drive meaningful innovation and accelerate growth. Turning to cloud computing enables businesses to deliver improved operational efficiency, attract new customers, enter new markets, develop new services and improve productivity.

In order to make these significant cost savings, now is the time for organisations to adopt cloud computing to stay one step ahead of the competition and up to speed with technological advancement.