Hello and welcome to our second newsletter from the series on Cloud Computing.
In this edition we are going to tell you about the costs saving that Cloud can offer your business.
Cloud Services enable your company to save money and be more competitive in an easy and realizable way. Indeed, as far as economics are concerned, cloud computing is right at the top in its ability to cut costs.
1. Economies of scale
Cloud computing companies can buy IT equipment in bulk to lower unit acquisition costs, this price is much lower than what you would pay to buy similar equipment from the retail market.
Hence, you benefit from these economies of scale in multiple ways:
– You don’t have to purchase the hardware that you don’t need or will not utilize to its full capacity
– You don’t have to support all the hardware
– The service providers can utilize these economies of scale to offer cheaper rates to your business.
2. Pay as you use
Companies evolve constantly as well as their needs, and you may not know what will be yours in few months. Cloud computing companies operate on a pay-as-you-use model, so you only pay for the services you require and use and can easily adjust your exigencies in power, space and services at any time.
3. Running costs
Running costs comprise a big chunk of the annual IT budget (maintenance, upgrades, personnel salaries, premises, energy etc.) By shifting to cloud computing, you remove all such expenses.
4. Depreciation costs
Your IT equipment depreciates over time, and it’s a big expense to replace them. With cloud computing, your one-time expense is spread across several operating cycles, becoming part of operational costs.
Now, you should be convinced that Cloud Solutions can make you save a lot of money. But if you are still not, you should know for example that a 5 users company based on the Cloud can save 77% of its IT expenses in a 3 year period of time compared to buying a server on premises.
If you would like to have a more precise estimation of how much money you can save in joining the Cloud, please fill the form here and we will send you more specific information for your needs. You can also email us to email@example.com.
Next week we will cover how Cloud can improve productivity, efficiency and increase innovation in your organisation.