Cloud computing has become a proven business tool for many companies, in terms of efficiency and optimization. But one of the first premises that convinces CEOs to step into the cloud is finances. When a business migrates to cloud, it delegates important financial & human resources. This way, the focus and money can be reallocated on its core strategy & innovation.
Below, we wrapped up the 5 main financial benefits of moving to the cloud:
The very expensive steel servers and infrastructure you used to work with are now replaced with a third-party server where you upload all your data, together with other companies. The maintenance is provided by the cloud provider, so you can save time and precious resources.
One of the most important aspects here is scalability, meaning that the cloud adjusts its resources based on what you need at a specific moment. Basically, you pay exactly for what you use. This way, you avoid unplanned server downtime and increased operational costs.
Revised IT Management resources
As the infrastructure maintenance is reduced, the IT team has more resources to allocate on other areas. A much smaller part of the money that used to go on infrastructure maintenance is now allocated to a cloud subscription. Good IT people are expensive to find and to keep, so making savings by opting to cloud lets you reinvest some of the finances in new projects, valuable people and other areas of the business that need improvement.
Lower energy costs
Cloud computing uses less energy than a typical data center – which continues to use electricity even when not used. Cloud is essentially a scalable product by using only the servers, energy and resources it needs, so it allows its users to enjoy reduced energy bills. It is also an environment friendly tool by reducing the carbon footprint, because it uses shared servers instead of massive data centers for each company. Moreover, working remotely dramatically reduces the use of gas and oil, as people do not have to commute and drive anymore to do their job.
Reduced disaster recovery budget & time
In case of crisis and data attack, the average cloud disaster recovery time is 2.1 hours, compared to 8 hours for those who don’t use cloud for their businesses, shows a study form Aberdeen Group Study.
It’s a big money saver because you don’t use your own resources to handle disasters, the cloud provider oversees it.
No upfront costs
This investment moves from CAPEX straight into OPEX, because you don’t make any investments in hardware, people or utilities. Economically wise, this is a major drive to shift your business into cloud. You agree on a monthly or yearly subscription. The up-front costs that usually come with installing your own servers, becomes the cloud provider’s problem, not yours.