How Putting Your IT in the Cloud Can Save Your Organization Money

March 27th, 2018
Andrew BunyiCloud CIO

Cloud computing in an enterprise environment is hardly a new concept, yet many organizational leaders are still having a hard time seeing the forest for the trees, so to speak. They understand that the ability to leverage the power of modern technology to its full advantage is one of the keys to success in the modern era, but they often fail to grasp that the tool itself matters less than how they choose to use it.

Because of this, many organizations are still choosing to house every last hardware- or software-based solution on-site — a move that is becoming more and more inadequate for even smaller organizations trying to serve expanding audiences in an increasingly digital world.

Indeed, the economic benefits of cloud computing in general are driving more companies away from hosting their data and running applications in traditional on-premises information technology environments with each passing day. But putting your IT in the cloud will save your organization money in more ways than just by providing ease of use or decreasing the chances of costly downtime. There are actually three key reasons why you’ll save money by putting your IT in the cloud that are more than worth exploring.

scalability

1. The power of scalability

Perhaps the biggest long-term economic benefit of putting your IT in the cloud can be summarized in a single word: scalability. All businesses experience fluctuations where new employees are brought on to account for project or even seasonal changes and suddenly an increased IT demand becomes the new norm. But that norm isn’t necessarily permanent, and ramping down again when the status quo returns often leaves you with expensive resources and other assets that you’re not fully utilizing and that are costing you significant amounts of money as a result.

This simply isn’t a problem in cloud environments, which are inherently scalable in a way that is virtually unparalleled by other means. Not only do cloud environments naturally support growth in the form of the addition of new users and new applications, but it’s just as easy to scale back down again as needed. All businesses change; this is not something you can avoid. But thanks to cloud computing, it doesn’t have to be something that you dread any longer.

2. What upfront costs?

Perhaps the most obvious way that putting your IT in the cloud will save you money has to do with the significant reduction (and often the elimination) of the types of upfront costs that are normally required to support technological assets in the first place. An organization no longer needs to spend huge amounts of money on hardware and software resources, as they’re delivered in a straightforward way based on a pay-as-you-go business model.

If there’s something you need, you’ll have it. You don’t have to spend time researching acquisitions, nor will you need to pay people for installation and long-term maintenance. All you have to do is make a phone call and you’re ready to go, and when you’re running a business that depends on the ability to innovate on a consistent basis, that’s a very exciting position to be in.

ongoing maintenance

3. Lowering long-term costs all day, every day

Finally, one of the most critical ways in which putting your IT in the cloud can save your organization money has to do with the lower long-term costs. This goes beyond simply reducing your total cost of ownership (as you won’t actually own IT assets any longer, because there really is no need).

IT costs are significantly lower across the board in a cloud environment because your cloud vendors will manage most, if not all, of the application maintenance and user support. If something needs to be updated, it’s not your responsibility. If something breaks, your vendor will fix it. If something needs to be maintained or adjusted in a way that better aligns your technology with your long-term strategy, this burden no longer falls to you. All of this is handled by other people.

What you’re left with is a perfect storm: a scenario that frees up your valuable time (and the time of your IT staff) so that you can stop focusing on preserving the status quo and start focusing on the thing that matters most of all: driving your business forward into the next decade and beyond.

In the end

These are just a few of the many, many reasons why your business will save money by putting your IT in the cloud. But the key thing to understand is that these are not one-time advantages. Every time you’re able to take advantage of a new piece of technology without a massive upfront investment or you’re able to scale up or down with ease as business conditions change, that is another instance where cloud computing is more or less paying for itself.

Not only that, but you’ll finally have the power to not only take advantage of business opportunities as they present themselves (instead of watching them pass you by), but you’ll also know what is perhaps the most important benefit of all: the ability to maintain your competitive advantage in your marketplace by making technology work for you instead of the other way around. In the end, is there anything more important than that?