For a while now, there has been a raging debate on whether companies can really save by embracing cloud computing. As far as IT cost savings and cloud computing are concerned, the IT community is riddled with both success and failure stories. This makes it difficult to explicitly say whether the best cloud storage can save your IT costs. But studies show that cloud can actually save your IT costs, albeit not necessarily immediately.
It goes without saying that reducing both operational and infrastructure costs is one of the biggest promises of cloud computing. A survey by Rackspace that involved 1,300 businesses in the United States indicated that about 66% of respondents said that cloud computing reduced their IT costs. Only 17% said it didn’t while the remainder had no opinion. Following this finding, it is no longer debatable whether cloud computing helps business organizations to save IT costs, help businesses expand and increase data security.
Three major Cost Saving Areas
- Employees Costs
Cloud computing enables businesses to save on employees’ costs such as computer software costs. Essentially, most of the work is done in the cloud, leaving very little need for firms to install expensive software for each computer.
Another benefit that comes with cloud computing is that it may lead to reduction in the number of employees an organization has to hire. Therefore, there is a reduction in associated IT infrastructure costs; both hardware and software costs. Experts also say that cloud computers can be preconfigured so that they are always ready to be used by new employees. This saves organizations a lot of time and money when they hire new employees.
- Upfront Costs: Start-up Capital
Cloud computing normally eliminates large upfront costs. In other words, you don’t have to invest large amounts of money to build your own servers, which can be very expensive. It may force firms to invest hundreds of thousands of dollars to invest in their own servers. But with cloud computing, this money can be invested elsewhere as firms use cloud services because cloud services usually come with a monthly charge for a given amount of data storage space.
- Maintenance and Security Costs
Recall that with your traditional servers, you have to incur periodic hardware maintenance costs. Cloud computing gives you the ability to add hardware resources without disrupting services. This saves businesses money that could have been lost as a result of business disruption. That being said, cloud offers a more convenient way to quickly and easily test a newer upgrade. But with traditional servers, you literally have to stop everything in order to upgrade.
In the same note, with a cloud computing environment, a stolen, lost or broken computer doesn’t have very serious repercussion compared with what happens with on premise infrastructure. Actually, the whole idea behind cloud computing is not only to share risks (increase data security) but also to share resources.
Firms can save huge amounts of IT costs if they embrace cloud computing. However, it is not a forgone conclusion that companies will automatically save on IT costs once they migrate to the cloud. The right cloud applications must be chosen, depending on the individual needs of the organizations