Does The Switch To The Cloud Save You Money?

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Adoption of cloud computing is growing faster than ever before. Moving data storage to the cloud is a big question for businesses today. Though, is the move worth it? There are many advantages to the cloud hosting model, but is the cost advantage there? Results can vary by company, but only when investigating what it costs to make the switch and the many direct and indirect ways the switch can save you money in the long run can you truly see how the cloud can set your business up for future success and growth. 

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Cost is often the largest factor to consider when making a business decision like this one. Cloud computing proves to be cost effective for companies of varying sizes. Smaller businesses benefit because the cloud enables them to now compete with larger businesses who have the capabilities for a robust IT infrastructure. This is possible because most of the cost is upfront and the exact price point is determined by your need. Determining the price is completely transparent and based on specific metrics, like: bandwidth, storage, ram, among other things.Click to Tweet

Transparency is key to this model; you are able to see exactly how much the service costs you at any given time. A business that uses cloud computing can feel confident that they are only paying for the services they are using. No extra fees or redundancies. You are able to set up your payments for the subscription at different units of time; weekly, monthly or yearly. This is important because users of these platforms are not locked in for a certain amount of time or certain amount of storage, services from the cloud are completely scalable to fit your current or future needs. The upfront cost can seem daunting at first though in some cases it is overwhelmingly more cost-effective in the long term.

When upfront costs seem to be too much, be sure to take into account all of the associated costs involved in having an in-house data center. After realizing how the cost of servers can ripple throughout your business, it is easy to see all the ways cloud computing can save you money. If you move your data storage to the cloud, you’re not forced to pay the large amount of energy costs associated with running your own system. Moving to the cloud also reduces your capital cost because you’re not continually buying expensive hardware, replacing that hardware or purchasing backup hardware in case of malfunctions. Not to mention the price of licensing fees that accrue over time. In the long term, these direct costs add up and may limit the growth of your business in other areas.

Indirect costs associated to in-house data storage also need to be explored to determine if a move to the cloud is beneficial to your business. When a company has an extensive IT infrastructure, there is a certain amount of overhead needed to setup, maintain, and keep that system operational. There are clear convenience savings when switching to cloud-based data storage. In-house data storage systems take a great deal of time to set up. Some small businesses risk paying a large amount of money for setup before they’re even operational. The services that cloud computing provides are operational from the start, which greatly reduces loss of revenue compared to existing IT.

Confidence is attained with a cloud computing platform because all of the guess work of IT is taken out of the equation. When done right, this model can show a clear return on your investment. The overhead for a team that once maintained internal servers is now available freeing up resources to innovate in the areas your business has been wanting to grow.

With the cloud, businesses are able to provide proven quality assurance with considerably lower chances of malfunction. This allows companies to focus on bringing in more business and retaining it. As the world of technology grows and changes, so should your business. Companies that consistently look for the next best thing while giving current customers great service thrive. With the development of cloud computing, the next best thing is here.

Ready to get started? Find out how to grow and scale your business with Microsoft’s cloud platform, Azure.

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