Why move to the cloud? There are plenty of good reasons, but mainly because cloud computing lets you focus on what’s important: your business. While the idea of cloud computing can sometimes seem hard to grasp, it’s clear that it saves its users money .
What cloud Computing is and isn’t– Here’s my simple view: It’s what we used to call software as a service (SaaS), but it’s set up so it’s easy to switch on, simple to expand and contract, and usually has a usage-based pricing model.
1. Fully utilized hardware
Cloud computing will provide high utilization and better maintenance. Your workloads will share server infrastructure with other organizations’ computing needs. This allows the cloud-computing provider to optimize the hardware needs of its data centers, which means lower costs for you.
2. Lower power costs
Better hardware utilization means more efficient power use. When you run your own data center, your servers won’t be fully-utilized). Idle servers waste energy.
3. Lower people costs
Whenever I analyze organizations’ computing costs, the staffing budget is usually the biggest single line item; it often makes up more than half of the total. Why so high? Good IT people are expensive; their salaries, benefits, and other employment costs usually outweigh the costs of hardware and software. And that’s even before you add in the cost of recruiting good staff with the right experience.
When you move to the cloud, some of the money you pay for the service goes to the provider’s staffing costs. But it’s typically a much smaller amount than if you did all that work in-house.
4. Zero capital costs
When you run your own servers, you’re looking at up-front capital costs. But in the world of cloud-computing, financing that capital investment is someone else’s problem.
5. Resilience without redundancy
When you run your own servers, you need to buy more hardware than you need in case of failure. In extreme cases, you need to duplicate everything. Having spare hardware lying idle, “just in case,” is an expensive way to maximize uptime.
Instead, why not let a cloud computing service deal with the redundancy requirement? Typical clouds have several locations for their data centers, and they mirror your data and applications across at least two of them. That’s a less expensive way of doing it, and another way to enjoy the cloud’s economies of scale.
6. Go Green
By moving to the cloud, you’ll be greener in two ways. First, you’ll be saving energy. Second, you’ll be taking advantage of the work that your cloud service provider has done to reduce its data centers’ carbon footprint. Think of it as saving money that you might otherwise spend on carbon offsets.