Does moving to cloud computing save money?

Does moving to cloud computing save money?

I was discussing the business plan with my friend the other day.

Have you thought about going to the clouds? I asked.

His reply was hilarious, “we already have solar panels installed on our building.”

I could not stop laughing. Finally, I loudly said, “dude, I am talking about cloud computing, not solar energy.”

He felt a little embarrassed and asked, “Isn’t?cloud computing?too costly for a start-up like mine?”

Preface:

Cloud computing has been a buzzword for quite some sometimes now. With machine learning giving a new definition to cloud computing, it has been trumpeted as a money saver for new and old enterprises alike.

The?cloud platforms?help you reduce your premises’ storage and server space. It also reduces your cost of software licensing. Moreover, you will be spending less on hardware and maintenance. These are some of the obvious money-saving reasons for entrepreneurs to think of migrating from local to global cloud servers.

On the contrary, there are the clouds-related expenses one tends to overlook. First, cloud migration?incurs the capital expenditure. There is a considerable cost attached to the platform as a service deployment—on top of all, maintaining the cloud platforms and hiring the cloud support professionals increases the cost indomitably.

The jury is still out. The experts are still deliberating with views and counterviews whether enterprises can save money if they move to cloud computing and cloud storage or if the overhead expenses shoot up.

Cloud Computing:

We have already told you that cloud computing has been a buzzword. You do not need to scratch your head anymore. Let us explain what Cloud computing is!

Cloud computing means shifting your desktop online. Your computer has hard disks, graphic cards, software, analytical tools, and networking. Cloud computing replaces them with online servers, storage, software, databases, and networking.

Cloud computing involves storing and accessing data and computing services over the internet. As a result, you will access resources faster and in abundance and have the latest innovations at your fingertips. In addition, you will save a lot of money.

How does cloud computing work?

Cloud computing allows you to access data and applications (software) stored in remote physical servers on your desktop, laptop, or mobile.

Your internet connection connects your local device with cloud software, data, and computing tools. In short, a front end (your device) connects with the back end (clouds) to help you access remote servers to perform computing operations.

Cloud computing is dependent on automation technology. Virtualization compartmentalizes services and systems into logical elements for users to request and utilize.

Cloud Computing Service Categories:

Cloud Computing Deployment Models:

What is Cloud Migration?

Have you ever shifted your office from one location to another or from one building to another? Cloud migration is no different thing. Like moving your files from one office to another, you move your files from your computer storage to online storage in cloud migration.

Cloud migration is moving your digital business operations to the cloud. Cloud migration involves moving data, applications, and IT processes from the local computer network to other data centers. Usually, cloud migration is worth the effort as it provides greater flexibility and saves lots of money.

So, are we back to square? How exactly cloud computing saves you money?

How does cloud computing save money?

There is no doubt that saving money is the biggest motivator for businesses to move to clouds. Still, you will not save money automatically by switching to cloud computing. You might ask, how much money are you going to save?

There are no definite answers as it depends on the kind of organization you have, the type of cloud platform and services you choose, and the cloud migration method you adopt. When you decide to move your business to the cloud, you must know what you are up for.

Industry surveys confirm that almost one-third of companies that move from local to close lost money. Unless you adopt the convenient cloud service and choose the proper process, you may spend more than you could save.

However, if done correctly, cloud deployment saves you a lot of money over some time, as running services on the cloud is cheaper than initial expenses. So, let us check out some of the ways and mean you can save money using cloud computing.

Low Capital Costs

The cloud platforms enable IT transformation from capital expenses (CapEx) to operations expenses (OpEx). You are not required to invest more in hardware such as servers, networking peripherals, and storage. Similarly, you do not need a big office to store all the hardware and maintain them.

Moreover, you are spared from buying expensive software. Besides, local IT infrastructure has ongoing costs attached to it. You will not have to spare money for repair, maintenance, and replacement costs. And, top of all, there is an upgradation cost, you will be saving huge money on.

Pay-As-You-Go

Usually, public cloud platforms offer you an option of a pay-as-you-go pricing model, which is your OpEx. That means you pay for what you use and the time you use. Precisely, you will not have to pay for the capabilities you do not use. Sometimes, you require to scale up the processes or scale down. Cloud platforms offer you that flexibility without adding extra cost.

Fewer Utility Expenses

Although the price is dependent on the number and types of equipment you use, you will be able to save a good amount of money on electricity. For example, take your local installations and equipment. Even if offices are closed on weekends, maintaining IT infrastructure runs a daily cost. Moving on to cloud computing, you may not require to pay for these expenses.

Reduced Labour Cost

You will not need an army of IT personnel at your office to maintain your servers, storage, and networking all the time. Hiring people with hardware or networking expertise to sit ideally at your office was highly costly for IT and non-IT companies. Companies can now focus on technologies themselves and spend more on the latest technology instead of maintaining them.

Provides Competitive Edge

Especially small and medium-level companies can benefit significantly from cloud migration. They do not need a big setup, nor do they need to pay serious money to acquire high-end technology to offer superior services. Operating through the cloud platforms brings their overhead expenses down, and they become more competitive in the market offering greater services.

Conclusion:

If you have what it takes, you surely can save a lot of money through cloud computing and snowball in this highly competitive market. However, the operating phrase here is “if done properly,” as explained above. You should not spend endlessly reinventing your cloud infrastructure so often to have a tangled mess of the 21st century.

Here is a thing, invest a little time, do your homework correctly, and save more than you have anticipated from cloud computing. You will be getting ahead of the trend to improve your productivity with less to pay for the most advanced technologies.