Cloud Computing: A Cost-Saving Option for Businesses

As a business owner, saving money while providing a high level of service to your customers and your staff is critical. Increasingly, companies are turning to cloud computing to streamline information technology costs. Cloud computing also frees up IT staff members from maintenance duties. Cloud computing can be a money saving option whether you opt for a public cloud, where you share server space with other companies, or a private cloud devoted to separate divisions of your company. As a bonus, cloud computing often represents an eco conscious option to your IT operations.

Zero Capital Investment

Establishing and maintaining an internal server represents a capital investment of thousands of dollars, the value of which depreciates every year. On the other hand, opting for cloud computing requires no upfront expenditure, and suffers no depreciation. With cloud computing, your IT staff is also relieved of the burden of maintaining servers, which represent another major expense for many companies.

Lower Monthly Labor

It’s true that maintaining your IT functions in house does not  require paying additional monthly fees, while cloud computing does require such fees. However, freeing your IT staff from the responsibility of maintaining servers means that they can devote their energies to performing other functions which are equally critical to the functioning of your company, such as manning help lines and developing applications. If you a contract with an outside managing service to maintain your IT server, you can often save thousands of dollars each month by moving to a cloud computing solution.

Pay Per Use Billing

Meeting server demands is critical to many companies. Server malfunctions result in snags that result in customer dissatisfaction and staff frustration.  As a result, many companies invest in excess server capacity to ensure that they can always meet IT demands. Not only does this represent a major up front expenditure, companies often waste significant sums because excess server capacity frequently goes unused. Cloud computing is billed by use, which ensures that your company can scale up in server function to meet demand when it’s necessary, while saving money in the meantime.

Eco Benefits

Besides improving your company’s bottom line, moving your IT operations from an internal server system to the cloud could increase your company’s appeal to eco conscious potential customers and clients.  Cloud computing combined with automation allows IT functions to perform in the most efficient manner possible. This efficiency translates into reduced energy consumption.

Cloud computing also reduces carbon emissions associated with IT functions. If your company operates 26 physical servers within a network, your IT operations would be responsible for producing more than 200,000 pounds of carbon dioxide per year. By moving your IT operations to a private cloud, that amount could be reduced to just over 27,000 pounds of carbon dioxide per year, Smart Data Collective reports.

For Further Reading

  • Cloud Computing Isn’t All About Cost Savings
    articles.businessinsider.com/2011-08-01/tech/29969858_1_private-cloud-public-cloud-data-center
  • Companies Shifting to Cloud Computing Save Energy and Cut Waste
    greenbiz.com/news/2011/12/06/companies-shifting-cloud-computing-save-energy-cut-waste
  • Four Reasons Why Cloud Computing is Also a Green Solution
    greenbiz.com/blog/2011/07/27/4-reasons-why-cloud-computing-also-green-solution
  • Green IT: Cloud Computing Saves Time, Costs and Energy
    smartdatacollective.com/onlinetech/38519/green-it-cloud-computing-saves-time-costs-energy

Author Bio: Guest post contributed by Lauren Huttner for Diverse-Technology.com – Network Support New York. Lauren has extensive experience consulting businesses on their computing needs. She is also a freelance tech writer.

Image Credit: 401 (K) 2012 of flickr

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