3 Ways Cloud Computing Can Save Your Business Money

Let’s face it, running a business can be costly. Although implementing cloud solutions for business has gained traction due to its apparent cost savings, it’s normal to be apprehensive about trying it.

After all, adopting cloud solutions is still a relatively new technology solution to implement.

Our cloud services team at LDI works closely with customers to assess their current IT infrastructure to see how cloud solutions can improve how they work. We understand how scary trying a new technology can be. That’s why we recommend cloud solutions after evaluating your current security posture and having an open discussion about your IT needs and goals.

This article will break down how cloud computing works for businesses. After that, we will dive into three ways cloud computing can save your business money long-term. By the end of this article, you will have a clearer idea of whether cloud computing is right for your business.

How Does Cloud Computing Work For Business?

Cloud computing is the delivery of different services through the web which includes data storage, databases, networking, software, and servers. It enables companies to access their data at any place, any time.

Think of it this way: information gets stored in the cloud rather than keeping your data and software via a computer or on-premises server. This involves cloud solutions such as applications, databases, email, and file services.

Microsoft 365 is an excellent example of a cloud-based SaaS platform that allows users to access, store, and share data all via the cloud.

Are you still wondering how it works?

A common way to describe cloud computing is to think of the difference between renting and buying. Consider cloud computing as another term for rent capacity from a cloud services provider.

However, in this case, rent capacity refers to software access or server space. Instead of buying, you rent or pay only for the particular resources you use from a cloud services provider.

There’s a certain level of simplicity that comes with cloud computing. Your business doesn’t require equipment to adopt cloud computing. It only requires a stable internet connection.

What Are 3 Ways Cloud Computing Can Save Your Money?

Suppose your business is new to using cloud computing. In that case, you may be wondering if this technology can help you save money. We understand – uncharted territory can be scary!

Now that we have covered how cloud computing works, let’s look into the different ways cloud computing can save money.

1. No Upfront Hardware & Software Needed 

The more devices your business owns, the more expensive your environment is to monitor, manage, and maintain. The price of a computing device goes beyond just the initial purchase.

There are different types of security software such as malware protection software, endpoint detection and response software, and patch management software to pay for, but there are also break-fix repairs.

Just because you decide to use cloud computing for your business does not mean you need to remove all your hardware. After all, how can you utilize cloud computing with a computing device?

We’re just saying that an efficient on-premises server room can be pretty costly. Your business will have to consider the cost of first purchasing these servers and then adequately maintaining them.

So if your business can access its data via the cloud for a subscription-based fee, is it worth it to manage and maintain your room full of servers?

It depends on the resources and physical space your business has to maintain on-premises servers. It also depends on your budget for hiring dedicated cloud resources and paying for on-premises servers.

2. Predictable Pay-As-You-Go Financing Model

From the onset, the pricing model for cloud computing is typically pay-as-you-go.

Pay-as-you-go refers to a subscription-based package that enables customers to pay for what they need when they need it.

While the cost can fall under packages per user or device, several providers calculate the price based on per unit.

The per-unit cost of the cloud can help customers understand exactly how much IT operational costs are associated with the addition of a unit, service, or customer.

Cloud services can be implemented, maintained, and scaled based on the actual usage or requirement of the application or workload it’s supporting.

Additionally, rather than paying for expensive server equipment, desktops, and licenses, you can utilize cloud solutions with ease of use.

Your business will not need to worry about ineffective software since you can cancel at any given time. You won’t need to invest in software, hardware, or an expert to run a cloud solution effectively compared to an in-house solution.

3. Low Staffing Costs

Cloud computing will reduce the need to hire a full-time IT team to manage your cloud or IT requirements. Why?

Well, cloud-based solutions are intuitive enough to consider utilizing the resources you already have.

In addition, if your company is interested in receiving assistance in choosing, deploying, and utilizing cloud services, you can also consider working with a cloud services provider. A cloud services provider will also recommend cloud solutions based on your budget, needs, and long-term business goals.

Some traditional cloud computing or SaaS examples include Microsoft 365, Dropbox, Salesforce, and Cisco WebEx, to name a few.

So by relying upon cloud computing technology, your business can save money that they would spend on an experienced in-house IT team and deploy intuitive cloud technology that can either be monitored by a cloud services provider or your business.

Is Cloud Computing Right For Your Business? 

It depends on where your business is at in its journey. 

Suppose your business has held onto the same IT equipment for five to ten years. 

But now, you’re looking to swap out outdated devices and incorporate cloud-based solutions for a more productive and efficient work environment. In that case, cloud computing may be the right fit for you. 

Now suppose your business does not require a cloud-based data sharing or data storage solution, nor do you have the resources to consider a new approach to your IT setup. In that case, it may not be the right time to consider cloud computing for your company.

At LDI, we are huge advocates for streamlining work through easy-to-use cloud-based technology and solutions.

Learn more about migrating to the cloud by reading our article on developing an effective cloud migrations strategy in 5 steps.