Is There a Business Case for Cloud Computing?

Cloud computing has been and has been a hot topic for some time now, but it’s nothing new, so why all that fuss? Studies suggest that most of all data is inactive and unstructured, yet many companies and organizations still pay to host all their data on the spot – a costly and potentially risky option.

Cloud computing is seen as a way to enable companies to do more for less; it frees up IT departments’ time and significantly increases data security and accessibility, all at a lower cost than traditional on-site data management.

Change focus

By outsourcing data management, IT departments are released as they no longer have the cumbersome tasks of updating servers and dealing with associated data access issues. More time allows IT professionals to concentrate on innovation and drive their business forward. By using cloud technology, even the largest companies can only operate with a handful of IT staff.

cost Benefits

Cloud computing offers a number of associated cost benefits, including:

Equipment Purchase – The cost of purchasing equipment required to house and protect data can be expensive, even for the largest companies. Using a service provider’s hosted virtual servers (or placing your own physical servers in a service provider’s data center) significantly reduces costs.

Maintenance and Upgrading – In addition to the initial investment of on-site equipment, ongoing management and upgrade requirements include additional expenses, as does the need for staff required to manage it. A cloud service provider handles all the associated costs of upgrades, environmental management, and so on. Not only does this provide a company with instant savings, it also allows for much clearer budgetary certainty.

Budget Security – When the service provider provides the infrastructure, a business will enjoy a low capital cost and predictable monthly costs. Most services work according to a monthly plan that offers a business a flexible “pay-as-you-grow, save-if-you-shrink” model. This allows companies to predict technology costs clearly, as do other utilities, such as gas, water and electricity. It also ensures that no money is wasted on excess technology or storage, which may be surplus to requirements.

Energy consumption – Centralizing business systems and running applications on a virtual platform can save huge power savings. As fuel costs and carbon taxes continue to escalate, there is no better time to include cloud computing.

Privacy Policy

While cost is undoubtedly a big draw for cloud computing, the most important aspect is security; All the savings in the world will never compensate for a loss of data. According to the National Office for Statistics, 43% of businesses never reopen after a loss of sites, while 93% go out of business within five years. Being prepared to tackle disaster is crucial, and cloud hosting provider will have all infrastructure resilience to avoid such scenarios.

As you can see, the cloud is flexible, scalable, cost-effective and frees IT departments from time-consuming maintenance. Including cloud computing relieves capital expenditures, reduces operating expenses and gives businesses a clear budget predictability. With so many benefits, it’s easy to see why so many companies are moving to the cloud.