Cloud IT Services: Are They Cost Effective?

Cloud IT Services: Are They Cost Effective?

Cloud IT Services are becoming increasingly popular with businesses of all sizes due to the perceived cost-saving benefits. But is cloud computing really cheaper than installing on-site hardware to power your company’s IT infrastructure? By switching to the cloud, you won’t need any on-site hardware or the staff to maintain it. However, you will likely need to pay a monthly subscription fee to use cloud services, where you might only need to cover the initial installation fees to get up-and-running with on-site hardware (though there are plenty of other costs involved over the long term). So, let’s look at cloud computing and how it can help you save money.

How much does it cost to switch to cloud computing?

When compared to installing on-site software, getting set up with cloud-hosted solutions can be dramatically cheaper. Generally speaking, there are no upfront costs for cloud solutions. Instead of paying an installation fee, you’ll utilise hardware stored in external data centres and pay a monthly subscription to access the services you need. You might think that means switching to the cloud will cost you more in the long run, but you should remember that maintaining and running on-site hardware can add up to a small fortune. Most studies show that in the long run, switching to the cloud helps businesses save money.

Do I need to handle software and security updates at my own expense?

If you choose to power your IT infrastructure using on-site hardware, you’ll need to stay on top of security, software and equipment updates. This can be tricky for many business owners given the rate at which technology evolves. And, it can be expensive. Switch to cloud solutions, and somebody else will handle software and security updates automatically as well as keep their servers in top shape. Plus, the more clients a cloud provider has utilising their cloud IT services, the lower their costs become, meaning they can pass on the savings to you.

Can switching to the cloud reduce my energy usage?

Install on-site hardware, and you’ll need to spend a lot on power. You’ll likely need to power your equipment 24 hours a day, and you may not run your servers optimally with regards to energy consumption. Use cloud-hosted solutions, and you can use off-site servers that your provider pays to power. Plus, because those off-site servers power cloud solutions for lots of clients, power economy can be optimised. Again, this means cloud providers can pass on savings to you.

Can I save on wages by switching to the cloud?

If you intend to install on-site hardware, you’ll need a team of qualified and highly experienced IT technicians to keep your equipment in full working order, and that means committing to full-time wages. With cloud computing, you don’t need to worry about employing a team of IT maintenance specialists because everything is dealt with remotely.

Does switching to the cloud reduce the risk of redundancies and downtime?

Redundancies and downtime can be huge – and costly – problems for businesses of all sizes. In most cases, you can’t rely on a single item of hardware to handle all your IT requirements and keep things up and running. What happens if your main server fails? How much money could you lose as a result of the downtime? Cloud providers use multiple servers, each one being able to take over another’s role should it fail, which significantly reduces the risk of downtime.

Overall, cloud computing is much more cost-effective than using on-site hardware to power your IT equipment. If you want to know more about the cost-saving benefits of the cloud, don’t hesitate to call us.

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