5 Ways Cloud Computing Will Save Business Expenses

Finding ways to cut costs in a business is a necessary practice that maintains the integrity of every part, shearing off any pieces that have become outdated and unnecessary. In today’s world of integrated technologies, more and more businesses are making the switch to cloud computing in a business move that trims away an older technology that often costs more than it’s worth to operate.

Running Cost Reduction

The IT department can be one of the most expensive places to run after calculating such things as salaries and bonuses. Cloud computing companies are extensions of the IT department, meaning you need to keep fewer staffed keep internal functionality. While you will be paying a monthly fee to use the cloud space, you are paying for a service out of house that then reduces your cost in house, netting you an increase in savings.

Upfront Costs

If you invest in an internal system, you will have a lot of fees to cover up front for servers, hard drives and other pieces of equipment. Even if this can happen, the equipment will continually depreciate, turning what you thought was a one-time purchase into an expensive money sink that needs to continually be maintained. Clouds negate the need for such costly and continual renovations because the company that hosts it takes care of all of the hardware upgrades.

Roll Business Tools Together

Cloud computing allows for many different applications, systems, and software to be run together in a central platform. One example of the effectiveness of this streamlining, according to Global CTI, is demonstrated in business communications. These days, business communications tends to be awkwardly spread across many different channels. There’s land lines, smart phones, instant messaging (both desktop and mobile), email, social media, and video conferences. To role all of this software and hardware together in one comprehensive solution would be very costly with in-house equipment. However, the right software can bring the entire system to the cloud and increase efficiency enormously.

Reducing Redundancy

Aside from needing to invest in new machinery that can easily cost over $5000, a company’s personal data storage will also need a series of back up hardware components in case of failure, costing the business even more up front. The companies that provide cloud storage already have such safety measures in place and generally have more than one location that mirrors all of your uploaded information.

Pay for Use

The general business model for cloud storage companies is that the users only ever pay for what they use on average during a month. This means companies that do not use a lot of space do not have to incur capital expenses to buy their own server that is not even used at full capacity.

Electricity Reduction

Cloud computing saves your business from the often times astronomical electric bills. With servers needing to remain powered at all times, they are one of the main sources of wasted electricity in a office. By cutting out the power drain, the electric bill decreases not only saving you money but also saving the environment.