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January 10, 2021

Seven Ways the cloud saves money

Here at Boxfusion, we use Microsoft’s Azure cloud in just about everything we do. We choose Azure because it fits our business requirements, powers our solutions, and its reliability helps us keep our vital services to our clients available all the time.

But more than that, the cloud makes excellent financial sense for us because to do what we do without Azure would require us spending a lot of money on our own infrastructure. And that’s just not smart in 2021.

So yes, saving money is an excellent reason to embrace the cloud.

In case you’re not yet convinced, here’s a rundown of the 7 most common ways the cloud saves companies money.

  1. No up-front hardware investment

By procuring all of the hardware you need to run your business from the cloud (email, storage, application servers etc.), there’s no need to buy physical hardware up-front. All you pay is a monthly fee that’s based on your usage.

More importantly, you can scale your cloud resources up and down as your usage requires, which helps you to avoid that age-old problem of buying too much or too little hardware for your needs.

  • Drop your software costs

If you get all of your business applications from the cloud, there’s no need to buy licenses for full packaged product per employee in your organisation. You simply pay a modest fee each month according to the number of users you have.

And because your software is cloud-based, it’s always up to date without you having to lift a finger, saving more on maintenance costs and avoiding downtime entirely. All updates are done automatically by the cloud provider so that whenever you use your software, it’s the latest version.

  • Spend less on electricity and UPSes

The cloud is really just someone else’s datacentre, which means you’re not paying for electricity to power your own datacentre.

You’re also not paying for air conditioning to cool it or backup generators in case of load shedding, all of which adds up to significant cost savings for your organisation every month.

  • Pay less for IT support

Without a farm of servers to run, you don’t need a huge IT department as all of the human resources needed to run your cloud-based applications and services are the vendor’s responsibility.

By reducing your IT team down to a core few to support your users, you’ll save a ton of money over time.

  • Take the guesswork – and cost – out of redundancy

Running your own server hardware and ensuring that your redundancy strategy can handle any unexpected failures can be costly. It’s difficult to determine exactly how much redundancy is enough.

With the cloud, redundancy is built right into the services you’re paying for, so you’ll very seldom suffer any sort of down time. Most cloud providers offer at least a 99.9% uptime promise, which equates to barely a few hours each year.

With the guesswork removed entirely, you don’t need to spend money on additional hardware to ensure that your core services are never unavailable.

  • Pay only for what you use

If you own all of your own IT infrastructure, when it’s not in use, it’s being wasted. Worse, when you need more than you have, adding capacity takes time and money.

With the cloud, you simply pay for what you use. And when you need more than you have, you can provision exactly what you need with just a few clicks, and get access to it right away.

Beyond mere cost savings, it’s the cloud’s flexibility and agility that offer the longer-term benefits.

  • Drops your security costs

Cloud providers work hard to make sure their solutions and services are secure, because they want you to be able to trust them.

This removes the cost and complexity of securing your valuable data on your own, while still keeping it secure.

Of course, your business’s needs are unique, so don’t just charge in and go with the first cloud vendor you see: be sure to have your chosen cloud provider do an evaluation of your organisation’s needs before committing to anything.

But if nothing else, cloud services can replace much of the functionality provided by your current on-premises hardware, and is a great way to reduce your running costs in these trying times.