Relocating operations to a cloud based platform is a sound strategic decision. However, although the technology is not brand new, it has taken some businesses a while to get behind the idea of integrating it into operations. Often, this comes down to a fundamental misunderstanding of a cloud premise and just how much of an advantage it could be, whether a business is large or small. Perhaps the most obvious way to demonstrate this is to look at the key financial reasons to move to the cloud.
1. Avoiding up front investment
Large outlays of cash on IT infrastructure can be problematic for business finances. Sometimes investments are unwise but the expense can’t be reversed afterwards. Moving to the cloud removes the need for any up front (or repeating) capital investment without affecting the quality of the infrastructure the business has access to.
2. The scalability of infrastructure as a service
Scalability is often identified as one of the major benefits of moving to the cloud and this has a particular impact with respect to cost agility. Using infrastructure as a service via the cloud enables IT to be more responsive and to increase or reduce depending on actual business need. This also allows spend to be tailored – and reduced where there are less resources to cover it.
3. Eliminating maintenance costs
Moving to the cloud means passing on the responsibility for maintaining the IT infrastructure to the cloud provider. So, this considerably reduces the costs associated with IT spend. It also means there is less need for staff to maintain IT infrastructure and reduces the potential headaches that can be caused by poor maintenance issues because these are dealt with elsewhere.
4. Reduction in disaster recovery costs
A study by Aberdeen Group found that disaster recovery for businesses running in the cloud was much swifter. Those businesses without the support of cloud providers took around eight hours to resolve problems whereas for those with cloud support the timeframe was just 2.1 hours. With faster disaster recovery, costs associated with major problems can be considerably reduced, as can the knock on financial impact of downtime or security breach.
5. Resources and energy
There are two key components required to fuel on-site IT infrastructure: people and energy. When a business moves to the cloud both of these costs can be considerably reduced. Because most of the IT is managed by the cloud provider, IT staff costs can be minimised. Plus, without power-wasting often-idle servers on site you can reduce the energy bill that your business faces too.