To see how cloud computing is cost-effective, it is necessary to understand what it is and how it works.
What Is Cloud Computing?
It is a process of utilizing internet servers to manage, process, and store data remotely. It goes beyond merely eliminating the need to have a server room in your office. Millions of people have successfully integrated this technology into their daily life. With proper knowledge of how to use it, cloud computing can save your business a substantial amount of money.
This practice has several implementation models based on the scale:
Most people use software-as-a-service every day. Many without even knowing it. These are web apps that work in the browser. A perfect example is Gmail. While a lot of people still use dedicated standalone email services, this one is by far the most popular one. The main reason for that is the ease of access. That’s what you get with SaaS. With both free and pay-as-you-go models, this implementation of cloud computing is definitely cheaper. For example, you need to pay for each copy of Most people use software-as-a-service every day; many even without knowing it. These are web apps that work in the browser. A perfect example is Gmail. While many people still use dedicated standalone email services, this one is by far the most popular. The main reason for that is the ease of access. That’s what you get with SaaS. With both free and pay-as-you-go models, this implementation of cloud computing is cheaper. For example, you need to pay for each copy of Microsoft Office for each PC of every employee. Or you could use free Google Apps that are available wherever there is an internet connection.
The platform-as-a-service model has a more specific use in comparison. However, they are just as handy, especially if you’re in the software development field. They provide all the tools needed in one environment. It means that you don’t need any other applications for different tasks. The goal of PaaS is to give you all the tools you need for your job, even if there is no broad appeal.
In a way, the same can be said about the infrastructure-as-a-service model. Solutions of this nature help you avoid the need to build an entire system from the ground up. They already contain server, storage, and networking resources. It allows you to test various processes in different environments, conduct data analysis, and host websites.
Cloud solutions are already well-established on the market. They are especially beneficial to SMBs since they have the potential to save companies much money. Many businesses have already adopted them successfully.
Guide on How to Save Money With Cloud Computing
1. Save on Hardware and Other Technical Equipment
Cutting-edge equipment is extremely costly. Providing every employee with a desktop as well as maintaining a server room is a significant investment, especially for a startup company. Businesses often buy more hardware than they require. There are legitimate consequences for that, for example, scalability of the company and quick recovery from breakdowns.
However, when using cloud-based software, you don’t need high-end equipment. Most platforms that can launch a web browser can handle it. Many companies have adopted a BYOD (Bring Your Own Device) policy to cut down the costs further. While not applicable to all industries, practices of similar nature can buy you time until you can afford proper workplace PCs. Note, however, that BYOD policy can be a security risk since you can’t control the personal devices of your employees. That remains the main concern for 72% of companies, according to Crowd Research. It will cut down the costs of running a business but be aware of the potential risks.
With cloud computing, it is possible to reduce expenses on energy bills too. For example, not having a server room with power-hungry cooling systems continually running. As a result, you don’t just save money but also become more environmentally friendly, which is increasingly relevant for organizations big and small. WSP has established that the use of cloud computing is 93% more energy-efficient, with 98% lower carbon emissions.
2. Save on Expensive Enterprise Software
In terms of technology, the hardware is not the only expensive element. Depending on your field of business, regardless of whether you build or buy it, professional software often costs a pretty penny as well. Also, bear in mind that you have to provide a copy for each PC. That makes scalability both challenging and costly.
Sure, cloud computing cannot replace a production line. However, they can aid with their management as well as the vast majority of business processes. This includes work with documents, customers, HR tasks, and much more. The amount of money saved is a case by case scenario. Some companies can completely automate entire job positions and eliminate the expenses associated with them.
Cloud computing services have a different payment model. Instead of an upfront lump sum, they offer monthly subscriptions in the vast majority of cases. Also, you decide what features you require. When you don’t need it anymore, you can adjust or cancel without feeling the need to get your money’s worth out of it. This personalization is something that can’t be achieved without developing an expensive custom solution. There is no need to invest in an entire complex infrastructure right away.
3. Save on Labor While Retaining Productivity
An in-house tech support and maintenance team on your payroll is often unnecessary. The provider has these jobs covered. It’s also always up-to-date and consistent across all platforms, saving you the trouble of updating it manually. The service handles cybersecurity concerns as well. Your data is always backed up. This way, it’s easier to recover from disasters and continue making money.
Cybersecurity is not as cut and dry, however. Many people are wary of storing sensitive data on external cloud storage platforms. Due to poor infrastructure, some cloud services have been a target of hacking with disastrous data leaks. That’s why you should always be aware of potential risks when dealing with personal data or intellectual property.
The fact that providers of cloud services handle the upgrades and maintenance doesn’t mean that you should cut out your IT department entirely. The benefits come from appropriate time allocation. The specialists you have can use their hours more productively, rather than focusing on mundane tasks that can be automated. Besides, they are the people who can help you configure and implement cloud technologies most efficiently for you to get the most benefits out of them.
4. Save Time. Time Is Money After All.
Reallocation of time is something that is not talked about enough. A lot of working hours are wasted on menial, repetitive tasks that can be automated. While some business processes are yet to get a cloud solution, many can be implemented quite quickly. For example, instead of responding to the same customer support messages, a chatbot can handle them. At the same time, an employee spends extra time in a severe case, increasing customer loyalty.
Cloud services are always in business too. If you set up an automated solution to do work, you won’t miss a single hour of potential income. Be it the chatbots, instant order processing by an eCommerce website provider, or automatic CRM updates whenever someone leaves their contact information. All of this can be done in the background while you sleep.
The deployment of cloud services is rapid. It’s not that much harder than opening up a website. They don’t require installation, and employees can start working right away.
It doesn’t just reduce the downtime, it also enables you to work from anywhere with an internet connection. If your job requires travel, then this practice is a must. It makes communication and collaboration with remote employees as easy and streamlined as with the in-house team. Some companies go a step further and eliminate the physical office. While this is not an option for most organizations, reducing the physical space required can save money on rent, energy, and other utilities.
5. Guarantee Your Savings
To reduce the company’s expenses via cloud computing, you have to do some work first. Research the specifics of the services and make sure they are reliable. Data security should be a priority. Remember that the weight of an entire business potentially lies upon this choice, so don’t take it lightly. Also, be aware of the potential downtimes. Many services have scheduled ones, so plan accordingly.
But will cloud computing save money for you individually? There is only one way to know for sure. Make two separate budget estimates. One of them should be without any cloud integration. At the same time, the other one takes into account everything mentioned earlier in the article. By comparing the two, you’ll be able to see which approach is more suitable for your business.
Rounding Things Up
Cloud computing is rapidly changing. However, due to their incremental changes, they often remain unnoticed. AWS and Microsoft are both entering into the quantum computing market. Hybrid clouds (a combination of on-premises and public third-party services) are becoming more widespread as well. The edge computation trend decreases the latency of complex operations due to closing the distance from the client to the server. All in all, the landscape has changed so much that even six months ago, it was completely different.
One thing remains the same, however. Cloud computing can help you save money. If you’re starting up, then this technology can make the time to market substantially shorter. Even if your organization is a well-established enterprise, offloading a number of your business processes can save you a pretty penny as well. With the rapid growth of this technology, there is no reason not to adopt it, or at least think about it.
