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10 Cost Benefits of Moving to the Cloud

by | Feb 25, 2014

10 Cost Benefits of Moving To The CloudThe use of cloud computing continues to grow. And it is not all hype! Properly deploying Cloud computing can provide many benefits which vary depending on your organization. Benefits can include cost, speed, flexibility, ease of maintenance, and more. Cost is typically one of the top concerns when moving to the cloud, so we will share the top 10 benefits of moving to the cloud below.

The top 10 cost benefits of the cloud are:

  1. Cloud computing can be a less costly way to provide IT-related services largely from paying for cloud computing services in proportion to use, rather than by purchasing hardware and software directly.
  2. The cost is moved from capital expense to operating expense, which means the cash flow impact is spread over the usage of the resource rather than heavily weighted upfront. Therefore, cloud-based services have financial advantages when capital is constrained or cash flow is under pressure.
  3. Cloud computing has exponential scale without the associated expense because it removes the need for staff augmentation during peak times and avoids over provisioning of hardware & software.  This means you don’t have to invest in infrastructure to support peak times during the day, week or seasonal inflections because the cloud solutions operates in a shared pool of resources.
  4. The services are transparent so understanding the total cost is easier. In many organizations, the invoice may be sent directly to or the finance department applies the expense directly to the department using the service therefore the IT organization does not have to manage complicated allocations.
  5. In comparison to traditional on-premise hardware and software, the upgrade and migration costs are reduced including the time and effort to manage the processes. The potential for business interruption is reduced as well.
  6. Cloud computing provides the ability to stay current and flexible without incremental costs because the service provider is always developing new services and leveraging the latest technology.
  7. Cloud computing provides IT capacity and capability, very rapidly, without the need for capital.
  8. Most cloud providers have tremendous leverage with hardware vendors and expertise in virtualizing storage, networks, processing and others that even the largest enterprises have difficulty matching.
  9. Cloud computing also frees up internal capital, technical talent, and management resources for more mission-critical applications. In many cases, it improves the quality of service delivered by IT.
  10. Accountability of resource consumption is clearly in the hands of the business user as the service expense can be directly tied to the consumer, in lieu of unclear allocation methods.