Published On: Sun, Jan 21st, 2018

3 Ways You’ll Save Money Moving to the Cloud

Companies today are pressured to do more with less, which places added stress on many departments. However, some teams are better suited to cut costs while maintaining (or even increasing) production. Cloud storage and computing has helped many IT departments save money while scaling their business. Their companies operate faster and more efficiently by embracing this new technology. To learn from them, check out these three ways companies save when they invest in the cloud.

Businesses Save on Hardware and Maintenance

Image via Flickr by Got Credit

One of the main ways businesses have saved on cloud storage is with decreased hardware and maintenance costs. For example, companies used to store data on servers in their offices. They were expensive, took up space, and needed a lot of air conditioning to keep them cool. Furthermore, there was typically at least one person hired for upkeep, including upgrades and repairs.

Today, more businesses have switched to cloud storage. They don’t need to bulky servers anymore and can get rid of the machines and clear out those rooms. Instead of a full-time employee managing the servers, they might pay a part-time security manager to keep their systems safe. The IT department is less stressed because they can focus on more pressing issues, and companies save by outsourcing storage.

Costs Scale Based on Growth

Many cloud storage providers offer services that scale with companies they work with. They might have a base cost and then additional charges as your company grows, or they may just have multiple levels of different expenses.

These scalable plans make it easy for small businesses to grow without seeing their monthly maintenance costs skyrocket. For example, with hardware-based tools or licensed software (like Microsoft Word or pre-cloud Adobe products), a company might have to decide whether an expansion or additional licensing is worth the cost. If their business shrinks, they can’t undo the extra costs. With the right cloud provider, a business can scale up and down, matching its costs with its profits. Of course security in the cloud should be taken into consideration when making decisions.

Testing Cloud Products Are Affordable

IT managers should think of cloud use in a similar manner as contracting employees instead of hiring them. Full-time employees are committed to working 40 hours per week and pulling a salary plus benefits; however, contracted employees only have to work a few hours and can be cut when needed. The same can be applied to cloud software.

Many software tools offer options for less than $100 for small business storage or web hosting. Even if you have to agree to a one-year contract, you will only pay $1,200 for the service. Those costs are still extensively less than most hardware options, and the benefits your company receives will exceed the initial investment. These costs and low barriers to entry make cloud tools easy to try even if you’re uncertain about them.

Almost any CTO can identify a few ways his or her company can operate better with cloud investments. They might save on software usage instead of hardware rentals or licensing fees, enjoy a wider variety of options, or simply condense roles to reduce payroll costs. These tactics might seem small, but they add up to real savings within an organization.