Last Updated on May 20, 2021 by MoneyVisual
The advent of cloud technology has opened many doors for its users worldwide. It doesn’t come as a shock that many industries have adopted the technology, which, in turn, is regarded as a significant factor for their growth.
The anytime, anywhere access to data, scalability of resources, multi-user collaboration, and many other advantages makes it a one-stop solution for all your business needs.
In addition to the wide range of benefits offered by the cloud, financial advantages are the ones that cannot be ignored. Let’s have a look at how moving to the cloud can save you money:
1. Reduced Hardware Cost
When you have to run a business or any service, you require massive capital to set-up hardware resources like desktops, CPUs, in-house servers, hard drives, and more. Moreover, the additional cost is required to repair and maintain these resources.
Adopting cloud technology eliminates these expenses. The ability to access data from any internet-connected device like laptops, smartphones, or tablets reduces the need to invest in office systems. Moreover, all of the data is stored at off-site cloud server farms maintained by cloud service providers. Therefore, there is no need to buy extra cooling systems and other equipment to maintain on-premise servers.
There is no ongoing cost that you have to pay for repairing or replacing the hardware. It drastically lowers the expenses; hence, enabling you to focus more on your core competencies and less on installation and maintenance.
2. Decreased Space Utilization
Every organization has to build or rent a large infrastructure to establish its presence. The general idea of maintaining an office space is to accommodate all the business employees and systems for a seamless work process. With the growth of the company, managing this space often becomes a costly investment.
However, the use of the cloud helps counter this issue by promoting remote accessibility of information. Since the workforce can work from any location at any time, your business doesn’t need to utilize much space to operate. It helps reduce the real estate cost as well as the stationery supplies required.
Moreover, lodging on-premise infrastructure like data servers also acquires large space. It is often overlooked. However, clearing up this area using cloud-based solutions can enable you to use the freed-up place for other essential tasks. Hence, you can manage more, even in a lesser space.
3. Lesser Workforce Hiring
In the case of local infrastructure, you need to recruit a dedicated team to handle the resources. You would also require on-site security professionals to safeguard the hardware from theft. It further adds to the office budget and increases the cost immensely.
Moving to the cloud dramatically reduces the manpower cost as it eliminates the need to manage routine tedious tasks. Instead of an in-house team, the responsibility moves to the cloud provider to look after the requirements of your business.
Your cloud service provider is responsible for every bit, from replacing any hardware or software resources to troubleshooting any IT-related issues. You don’t need to pay any extra amount for these services.
Moreover, your business can outsource many of the services instead of hiring a permanent employee for the same. It will help save money for the company. Also, cloud provides the ability to track workflow in real-time, resulting in fewer privacy issues.
4. Risk Management
The business data is prone to many accidental or cyberattacks that can hamper with the confidentiality, availability, and integrity of data. However, for a business, the cost of hiring a cybersecurity professional and investing in resources to backup data is high. Therefore, the cloud is used to mitigate the impact of such threats and handle the security process.
Most of the competent cloud hosting providers safeguard the company information by implementing advanced security standards. These policies are executed on the virtual as well as physical levels. Some of the measures taken by the service providers include:
- Data encryption
- Robust firewall system
- Multi-factor authentication
- Virus and malware prevention system
- Intrusion Detection and Prevention System (IDPS)
- DDoS prevention system
- On-site 24/7 CCTV surveillance
- Biometric scanning
Furthermore, it reduces the pressure from the IT team to backup information regularly. In the case of accidents or natural disasters like fires, earthquakes, and floods, cloud vendors activate disaster management strategies to retrieve data from the backups at geographically isolated servers.
Most of the time, data is stored at more than one location so that even if one of the server farms is down, data can be restored from another location seamlessly.
5. Customizable Resources
Every growing business has dynamic requirements. In order to adapt to the changes, it might need a proper system so that sudden requirements don’t affect the financial health of the firm.
Cloud technology offers scalability so that you can easily upscale or downscale the IT resources like the number of users, RAM, storage space, etc. It helps eliminate any restrictions due to hardware and software limitations. On the other hand, in case you don’t require additional utilities, you can easily reduce it.
For example, during the tax season, you might need to outsource some services and add the number of users in the system. However, once the busy season is over, you can easily remove those users.
Most of the cloud vendors offer budget-friendly options like pay-as-you-go plans as per the usage of these resources. It makes sure that you don’t pay more for what you are using.
6. Lower Energy Costs
Even if the hardware equipment is kept plugged-in idle at a place, it will consume energy and leave behind carbon footprints. It costs thousands of dollars to companies worldwide every year.
To eliminate this recurring cost, the use of excessive power can be minimized by moving to the cloud. The virtualization of servers and other such infrastructure saves you these expenses. Most of the businesses worldwide are using the cloud as it helps them adopt green practices without compromising with their growth.
Furthermore, the mobility benefits of the cloud allow you to work from anywhere at any time. It eliminates the need to travel to and fro from office, which lowers the emission of greenhouse gases emitted through vehicles and saves commutation costs.
To Sum It Up
Today, cloud technology is regarded as a new normal. Moving your business to the cloud has become a necessity rather than a choice. In addition to saving money for you, the cloud can also be regarded as a one-stop solution to gain a competitive edge in the market.