With businesses all over the world adopting cloud solutions, the idea of having your entire IT environment off-premise is becoming more of an accepted concept. The main benefit of having your IT environment in the cloud is cost efficiency but how does having your environment in the cloud reduce expenses?
Well when you purchase an on-site IT solution, you often have to purchase hardware with more resource than you require in order to provide scalability and to deal with peak times. When you purchase a cloud solution, you are utilising flexible pricing options which allows you to only pay for the resource you require at a single point in time. This is much cheaper than purchasing hardware that is completely utilised just a few times per month.
If you want to scale your cloud solution, you can do so with the only cost being the additional resources you consume. It is also very quick and easy to scale within the cloud as with a few clicks, you can have enough resource to take on your increased workload. When you come to increase your on-site IT solution, you need to consider large upfront costs for purchasing new hardware and any installation fees, it will also take a huge amount of time in comparison to a cloud upgrade. Just the planning for an upgrade alone can take up a lot of your businesses time and if anything goes wrong during an upgrade, it is going to end up costing even more money caused by downtime.
Cloud environments are often extermely reliable with fault tolerance in place which allows for the 99.99% uptime which your business needs. If any hardware failures occur in the cloud, the expense of fixing that hardware does not fall on you. In comparison to the cloud, on-site solutions are much less reliable and when something does go wrong, you are going to have a sizeable, unexpected expense to deal with. Not only will you have to deal with the cost of fixing the issue but also the cost of downtime to your business unless you have a very complex and expensive DR solution which has kept your business afloat during the outage. Cloud environments often have backup locations so even if an entire datacentre was to go offline, your business would still continue to thrive.
In this short article we have covered how an on-site solution has wasteful resources, reduced reliability and higher complexity as well as higher maintenance costs. This artical has covered how costs are reduced in a few ways but with the hundreds of products available in the cloud, there are many other ways in which the cloud can cut costs, save time and increase performance. If you are considering a cloud solution or even a hybrid cloud, contact firstname.lastname@example.org to see how we can help as partners of AWS and Microsoft Azure.