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Cloud Computing for Cost Savings

June 4th, 2012 · blog, Guest Post

Cloud Computing

Companies are always considering whether or not they can save money using the cloud. The answer is an unqualified yes. (Unless of course you’re a government intelligence agency that is!)

Regardless of the size of the business though, the cloud can provide a means of saving money. How? I’m glad you asked!

Cutting down on servers

The savings gained by moving to the cloud start with reducing or in some case eliminating servers at your business. Not having to run your own servers or at least reducing the amount of servers you need can save you money in many ways.

    • Less employees: Outsourcing services to the cloud means not needing your employees to be as highly technical or if you have a dedicated IT department, not needing as many technical personnel to make sure your servers are up and running.
    • Less equipment outlay: Leveraging the cloud means your business won’t have to maintain as much technology infrastructure. The business would be outsourcing its equipment needs to a cloud provider that is able to purchase hardware at a lower price than it could have and who only charges it for as much as it needs for as long as it needs it. Amazon is a big player in this space that allows you to save money by allowing you to buy only the storage or processing power you need at a given time.
    • Save on licensing costs: Moving services to the cloud, you can avoid having to pay license fees for software. This can be a big savings to any business, but an even greater savings for smaller businesses, since those aren’t able to take advantage of larger pricing discounts. There are many examples of this, such as the file sharing offered by Egnyte, which can save you on licenses for Windows Server.

  • Lower energy costs: By moving servers offsite, businesses can save on the electricity use to run those servers and the air conditioning needed to keep them cool.
  • Flexibility – With cloud computing you only have to pay for what you are using right now. You can add capacity whenever you need it and reduce it again if necessary. That means not having to put a lot of money into either software or equipment that are only need sporadically and for short periods of time.
  • Lower real estate costs: The bigger your business, the more IT employees and infrastructure you would need to run all of your IT in house. By using the cloud you can save the space you would have needed to house both those additional employees and equipment.
  • Less money lost due to server downtime: Using the cloud you get a guaranteed uptime that is almost always significantly better than what a business would get in house. That means a huge savings in employee hours wasted not being productive while IT works to bring the systems back up online.

The cloud is really a huge boon to both new and established businesses today. It allows companies to focus on what they do best while saving a significant amount of money on their IT infrastructure. It’s a no brainer for most businesses to leverage the cloud in some way to reduce costs and allow themselves to better compete in today’s competitive marketplace.

– This post was provided by Egnyte

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2 responses so far ↓

  • 1 Isabel // Jun 8, 2012 at 6:42 pm

    It sounds good from a business point of view to use The Cloud.

  • 2 Drew // Jun 23, 2012 at 11:58 am

    Cloud computing appears to be the way forward, and good for cost savings like you describe. Let somebody else shoulder the cost of ever changing hardware and technical expertise. In a few years we’ll wonder how we ever managed without it – should provide a good next step for driving businesses forward.

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