The Cost Advantage of Cloud Computing In Business

Banking on the go, bulk email marketing, or shared networks at work – we are all used to the different aspects of Cloud Computing. Simply put, Cloud Computing is accessing data, applications and resources off the internet. It is a significant shift from the hardware dependent processes that business had a few years ago. This stretches from basic data storage to accessing complex software for specific programs. But today, businesses go as far as categorizing Cloud Computing as a business / economic model rather than a mere shift in technology. Given how it minimizes resource usage and maximizes information transmission and consumption, it has been widely acknowledged to be the future. Here is more on the cost advantages of Cloud Computing –

Reduced capital investment 

Servers, software or the equipment required that run them – they all need a very significant capital investment. The process involves buying and installing them and maintaining it from time to time. This amounts to a significant expense. Add to this, the woes of wear and tear, and earlier companies were looking at a high capital investment on equipment with a poor ROI. Also, once the machines were old, they were rendered useless. With Cloud Computing, however, except a subscription fee (which can be customized for the business), there is a significant reduction in the investment made on equipment. Besides, things like maintenance and investment on data security are no longer worries. Moreover, the unconditional access and higher storage capacities offered at cheaper rates make operations efficient.

Cheaper, greener operations 

With hardware, besides the investment on equipment itself, the cost involved in running it is equally high as well. For example, electricity and periodic repairs could incur a lot of expenditure for a large organization. They are subject to updates or cause delays when constantly used. Cloud Computing on the other hand, is quite an all-encompassing one that has eliminated the need to have multiple ‘back ups’, margin for hardware failures and additional    expenses. Small businesses have access to computation facilities that were not affordable earlier.  Along with significant savings on power consumption, green revolutionists also advocate cloud for the reduction in carbon footprint that they cause due to minimal usage of resources.

Reduced expenditure on manpower 

Reducing the number of people hired for a particular project, is perhaps the best way to enhance its profitability. Previously, even if three people were designated for a project, at different levels, they required the indirect support of an entire tech team. Today, with cloud commuting, the employees may directly access the data and begin working, free of glitches. Although the company may have to invest on resources at the cloud services’ end, the expenditure is a lot lesser.  Also, since it is remotely accessible, working onsite is optional. This reduces transportation and other logistic costs that the company would have to bear in other circumstances. Plus, people who choose to work remotely can often be hired at a relatively lesser cost as well.

Cost-effective updates / expansion 

Earlier, hardware required constant updates either for better capacity, performance or simply due to change in technology.  This process was both tedious and expensive. Not only was it a physical change in the whole work flow, but often data had to be transferred manually as well. In case of software updates, the licenses for new versions did not come cheap either. Also, expansion invariably translated to increase in expenditure. With Cloud Computing though, most factors boil down to a better subscription. Most of your expansion needs will be addressed when you choose a higher subscription model, as your business progresses. They generally offer maintenance services too.

Total quality improvement at lesser cost 

On the whole, this translates to a comprehensive improvement in quality of businesses, although they are spending way lesser. For example, hassle-free processes make for improved performance and outcomes. Also, for those who are constantly worried about data risk, Cloud Computing offers enhanced protection and advantages like denying access to suspicious systems/ networks. The whole system can be easily monitored with a transparent workflow, another factor that was both labor-intensive and expensive, previously.

Days of cumbersome print-outs and files gave way to computers. And computers have given way to cloud. Although cloud is not absolutely glitch-free either, it is safe to say that a good subscription takes most burden off the organization. The enhanced ROI which in turn enhances profitability of a business, testify this statement.

Picture Courtesy: www.freepik.com