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Top 8 Financial Benefits of Migrating to the Cloud

by Olufisayo
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Cloud Computing Benefits

Cloud computing refers to the delivery of on-demand computing services such as cloud storage and computing power, usually via the internet, and is available on a pay as you go basis. Instead of owning their own data centers or computing infrastructure, companies can rent access to storage or applications from a cloud service provider.

If you are a business owner, you may be asking yourself whether it makes financial sense to migrate to the cloud. One of the main benefits of moving to cloud computing is that it helps firms prevent the upfront cost as well as the complexity of maintaining and owning IT infrastructure.

Additionally, companies that have migrated to the cloud have confirmed the effectiveness of the cloud solution. Cloud computing gives you the flexibility to perform tasks, work with data that is organized more efficiently and quickly, including data that is stored under sound protection. The following are the financial benefits that companies will get when they move to the cloud.

1. Zero capital cost

The first financial benefit of migrating to the cloud is that you will not incur the cost of purchasing expensive computers which offer great and lots of memory. Users no longer need to purchase laptops or computers, as they can achieve everything when they move to the cloud.

With cloud computing, you can store your information and perform your calculations from there. One of the cloud programs you can use for daily work includes Saas programs. The advantage of getting this cloud service is that you subscribe to it monthly, and you can use it as much as you want for your business.

Also, you will not need to wait to get an update because the program is updated automatically, and you can be sure that you have the latest version of the cloud program.

2. Zero maintenance cost

When you choose a service provider that offers cloud services to large companies, you will get the mandate to offer quality services as well as a serious approach to work. The responsibilities you will offer include the level of service, reliability, modern equipment, competent planning including implementation of projects of all complexity.

Offering your services from the cloud means that a service provider is looking after your IT infrastructure. Because you are not responsible for IT infrastructure, you will avoid maintenance costs associated with it.

This means that you will save your money, and avoid the headache of dealing with servers as well as complex hardware maintenance. Security updates and server maintenance are executed seamlessly by service providers without disrupting the productivity of a business.

3. Reduced energy costs

Another benefit of cloud computing is that it consumes less electricity. Cloud computing involves using servers you need which means that your business will become efficient with the power they use thus reducing energy costs. In case half of the people working in the United States were able to work from home it would result in the following benefits:

  • An annual reduction of 54 million tons in greenhouse gas emission
  • Annual oil consumption will reduce by 640 million barrels

4. Lower carbon footprint

Moving to the cloud is a great way of achieving your company’s environmental mission. According to a study done by a nonprofit agency dubbed Carbon Disclosure Project (CDP), companies with a revenue of $1 billion would save electricity amounting to $12.3 billion, which is equivalent to a reduction in carbon dioxide emissions of about 200 million barrels of oil.

Not all companies today take advantage of energy-saving in cloud computing. If you want your company to gain an added advantage over your rivals then you should embrace energy saving using the cloud.

5. Improves flexibility

Did you know that moving to the cloud can improve the flexibility of your business by up to 37%? Gaining access to files is one of the main characteristics of a productive day at work. With internal servers only, employees can’t access files stored on the server if the documents are not connected to it.

Whether you want to open an Excel file from your office or a Photoshop file from home you need to use the cloud because it allows you to access data from anywhere. This will give your employees more flexibility in solving daily tasks and can be effective if you are handling projects which require a deadline.

6. Minimize IT burden

Migrating to the cloud can reduce the burden of the IT department by up to 36%. Hiring IT staff means that you have to pay their benefits, salaries, and other employment costs which outweigh the costs of software and hardware.

There is no need to pay a whole team of IT specialists when the aspect of your business is such that it requires to be administered via the cloud. You will find that you will save money this way than when you hire an IT expert.

This will leave the company’s IT department to work with more serious tasks rather than recovering data which was accidentally deleted. This enables them to focus on the quality of the product which is being developed.

7. No more disaster recovery costs

If your company relies on cloud service providers for disaster recovery, you can speed up the process of disaster recovery. According to Aberdeen Group Study, businesses that run in the cloud resolved disaster recovery within 2.1 hours when you compare it to 8 hours for companies that did not rely on cloud service providers for their data recovery issues.

8. Reduced data security risks

As you already know, data is the most expensive resource of a business and the cloud protects it from encroachment. A Gartner study showed that come the year 2020, all the information leaks from the cloud will be as a result of internal problems or improper configuration, and not the vulnerability of the cloud service provider. IT firms need to pay attention to personnel training as well as internal business processes as far as the basics of security.

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