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Top Ways the Cloud Help You Cut Costs

Top Ways the Cloud Help You Cut Costs

Finding new ways to maximize profits and minimize expenses is part and parcel of running a business. One increasingly popular means of reducing costs is making use of cloud computing, with a study released by the University of Manchester revealing that 88% of those using the cloud responded that they have seen a reduction in IT costs.

Where are these savings coming from? How can the cloud help you cut costs and become more profitable?

Unique Payment Model

Most cloud providers work with a pay-as-you-go model. That means that businesses will pay only for what they need and use. This includes the number of email boxes, the amount of storage required, or the virtual server hours. Businesses effectively rent services from the provider. This allows them to put off unnecessary purchases and eliminate unused resources, but also simplifies scaling up when necessary. It also permits the business to test programs and other solutions before committing to a purchase, which brings us to…

Savings on Hardware and Software 

By renting from your provider, you avoid the need to purchase and maintain expensive hardware and software. These and other existing costs transfer over and become the provider’s responsibility. This can result in a significant reduction in your expenses by eliminating the costs of installation, maintenance, hardware, and upgrades.

Security is Absorbed by the Cloud Service 

Security is another service that transfers over to the provider, who will maintain security protocols, as well as the standards for data backup. Regular updating of cloud apps means that you will always have access to the very latest functions and features.

Most cloud providers also have multiple data centres that mirror company data so that failures will not disrupt your operations.

Reduced Costs for IT Personnel and Support 

With cloud services, all your IT infrastructure tasks can be automated and maintained by the cloud service provider. This will permit your in-house team to focus on more urgent tasks such as business development and strategy, which will ultimately earn your company more money. You may even choose to reduce your staff size. This may prove beneficial for smaller companies that need to keep their workforce light.

Reduced Power and Space 

Maintaining your own servers can result in a great deal of power consumption, not just for the servers themselves, but also the energy-greedy cooling requirements.  Cloud-based services means that your business will consume far less power, and you will require less space, meaning a decrease in office real estate.

The combination of on-demand services, improved security, flexibility, and increased efficiency all mean that making use of the cloud can make a significant difference in your business’s expenditures. Cloud computing has become a mainstream alternative for businesses large and small. If you haven’t already, now is the time to consider moving to the cloud.