Can Cloud Infrastructure Reduce Costs?

By now you have already heard of the cloud computing wave that every organization seems to be adopting and those who haven`t yet are now being considered as lagging behind in the face of technology. Each organization has its specific reasons for adopting cloud computing, but cost reduction is cited as being one of the major reasons behind the increased switch to cloud technology. Just in case you`re wondering how cloud technology contributes to reduction in organizational costs, by the time you`re finished reading this article you will be highly enlightened.

It is true that Cloud Infrastructure Reduces Costs, but how?

Reduction in repair and maintenance costs

When you subscribe to a cloud computing company, your employees will now be relying on virtual machines to perform their day-to-day activities. This therefore means that the bigger role of repair and maintenance will be transferred to the hosting company. Any time you experience downtime because there is a server default, it will be handled on the other side by the service provider. Thus the previous repair and maintenance work which was done by the organization`s IT staff will drastically reduce. Additionally the cost of replacement material will also reduce, and only the basic equipment required for cloud, such as monitors, CPU`s and stable internet connectivity will require maintenance by the company staff.

Reduces IT operational costs

The organization will no longer have to run a data center with multiple servers which usually consume a lot of power and require constant check up by technicians. In the end, this will reduce the monthly power bill to a great extent. Furthermore, the IT personnel staffing budget will also reduce significantly since the role of certain IT technicians will become obsolete and with time some will have to be laid off. The funds generated from the reduced staffing budget may be used in other organizational projects such as research and development. Also, having fewer IT personnel makes them more efficient and accountable which ultimately leads to increased productivity. For instance, if you have one person manning the repair and maintenance area, any loss of replacement equipment will be easier to trace. The remaining IT personnel are also able to focus more on innovation and new ideas which will eventually ensure that the organization has an edge over its competitors. You’ll actually be surprised to see how innovative people can become once they have more time on their hands, and are working in a less pressured environment.

Other Ways that cloud Infrastructure Can Reduce Costs

Access to the latest software and applications at a cheaper cost

When you subscribe to a third-party cloud service provider, your employees have access to a wide variety of software and application mostly at a cheaper licensing fee. As long as your subscription with your provider is active, your staff will continue to enjoy the use of such apps and the best thing is that such providers always have the latest applications in store for their users. In the end, your staff will not only enjoy the best apps at a much reduced rate, but using the latest apps will also ensure that they are more productive. For instance, the finance &accounts department will have access to the latest accounting software which may ultimately lead to increased accuracy. It therefore goes without saying that hosted services allow small and medium sized businesses to access more sophisticated apps at a cheaper cost.

Ability to scale up at a minimal cost

If you want to scale up, it becomes easier while using public cloud hosting services since because you will have more storage space to use and you are also backed up by powerful servers. This means that if you want to upgrade your accounting system to the latest accounting software in the market, you will do so easily without the need to invest in new hardware devices. This is because most accounting apps require system upgrading. Thus, instead of investing in powerful processors and increasing the RAM of your computers which will cost a lot of money, you just need to subscribe to a public cloud provider and it will save you from all that trouble. Scaling up may come at an additional fee from your cloud provider, but it`s nothing compared to scaling up as a private cloud user. Additionally, the moment you decide to scale down you will no longer have to pay the extra fee. In most cases, people usually scale up when they have a project that requires additional storage space and resources, such as a new development test by the R&D. Thus when the R&D is done with the project and they no longer need the extra resources, they can easily scale down.

Pricing is based on usage

You only pay for what you want to use, which supplements the ease of scalability. For instance if you want to be allocated more servers over a certain time frame, you may scale up during that time and once you`re done you scale down and remit to the normal rate with your cloud provider. This ensures that there is no wastage of resources because in a normal situation an organization would have been required to invest in servers and other hardware equipment and after the project is done the equipment remains idle.

In a nutshell, cloud computing infrastructure reduces operational costs to a great extent and companies such as TD Web Services are leaders in providing such services.