Where is the real cost savings in cloud computing?

Where is the real cost saving in cloud computing

As commonly known that cloud computing is turning out to be a financial saver for enterprise. Cloud users can save operation cost by moving business from in-house server hardware to the cloud and gain work efficiency. A question would raise then: Where is the real cost savings in cloud computing? The cost is reduced in multiple ways, this article will discuss about the cost saving of cloud deployment

IT Infrastructure

The upfront investment on hardware can be very expensive as they need to be kept maintained and updated. You no longer need to invest on hardware in advance with cloud computing, the scalability of cloud allow enterprise to enlarge the server whenever they want. Besides, many cloud packages include diverse software like Operation System which further reduces your IT cost.

Energy Cost

Cloud computing use less electricity due to the economics of scale, cloud provider charge business less energy cost than what you spend for your own in-house servers. Some researches show that cloud computing would help to save an estimated 68 – 87% in energy for its office computing. Enterprises can save thousands of dollars per month in result.
 

IT Specialist

Traditional servers are maintained by in-house IT specialist, the IT employee cost can be reduced because cloud providers are responsible for cloud management and maintenance. In fact, most of them offer 24/7 support and safeguard your cloud server at professional level. Thus, the salaries and other cost of tech team can be cut down.
 

Operation Cost

Cloud server makes remote working practical, this topic is popular recently because of Covid-19 outbreak. Your employee will be able to access the cloud and network with any devices outside office, the operation cost can be reduced consequently. A recent study shows that each remote employee could save up to US$11,000 a year in western countries.
 

Data Security

Business may invest a lot on the data security to protect data far from crisis, however there are many solution protecting the cloud data at a low cost in the cloud market, auto-backup and virtual private cloud are two common security technique used by many enterprises. These solutions are proven effective and efficient, helping users to save data addition cost.
 

* Let us know your comments and suggestions on LayerStack Community.