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savings in the cloud

Where is the real cost savings in cloud computing?

Cloud computing is turning out to be a great financial saver for SMBs (small and medium-sized businesses) and SOHO (small office/home office users) which would like to enjoy higher computational speeds and efficiency for less money and energy. As a result, an increasing number of organizations are moving their businesses to cloud for increased accessibility, availability and scalability; all at lower costs. Further information available at AWS Total Cost of Ownership (TCO) Calculator.

Real Cost Savings in Cloud Computing

No Upfront Investments – Moving to cloud is cheaper than you think. It involves no upfront investments as all the IT infrastructure needs will be taken care by the cloud service provider for a fixed cost. When you run your own servers, the overall costs of maintenance and management can go up leading to unwanted and unplanned expenditures. But, in the world of cloud everything you need can be availed just like utility services for nominal costs.

Fully Hardware UtilizationCloud computing results in economies of scale. It ensures fully utilization of hardware resources depending upon the business workloads. In the cloud model, your workloads will share server infrastructure will other organization’s computing needs which makes cloud provider to optimize the hardware needs of its data centers resulting in higher efficiencies for your business.

Low Power Costs – Cloud consumes less power and is more efficient than having an in-house IT set up. Better hardware utilization results in more efficient use of power. In case, you run your own data center, your servers may not be utilized fully and that may unfortunately add up to the bottom line. Whereas, cloud ensures complete hardware utilization charging you less for the systems used.

Reduced Workforce – With cloud, you no longer have to worry about recruiting expensive human resources for your computing needs. Over the top costs such as salaries, benefits and other employment costs can be avoided using cloud computing services as you pay less for provider’s staffing needs. However, you can deploy your IT staff to other areas of business such as applications development, which has maximum potentials for cost savings in cloud computing.

Redundancy – When you run your own servers, you need to buy more hardware just in case of system failure or crash. Buying extra hardware can add up to your overall costs as they need maintenance when idle. Instead, moving to cloud is an inexpensive way to deal with redundancy requirements. Typical clouds reside in several data centers and replicate your data for resiliency. So, your business would be up and running in no time should there arise any problem such as system failure or disasters like fire and flood.

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