The Cost of Not Moving Your Data to the Cloud - It's Bigger Than You Think

Read this article to learn how cloud computing services have been proven to increase savings and improve performance.

March 31, 2014 by Alex Collins, IT Services Consultant

Think moving your data to the cloud is expensive? It's likely not as expensive as avoiding the cloud altogether.

More and more of small-to-medium-size corporations are discovering that their newfound reliance on cloud services has resulted in two things that hardly seem to go together: increased savings and improved performance.

Pay as You Go

Traditional on-premise business solutions - the type where you purchase and maintain your own server infrastructure and services - may be well within your comfort zone. Cloud-based business solutions, though, can easily match the benefits of the old model, doing one better by boasting a lower total cost of ownership, even if it's not apparent at the outset.

"It can be expensive per month for cloud but look at your internal costs," explains Rob Keenan, Head of UK Portfolio Management at Siemens Enterprise Communications. "A lot of the expense is people and even the cost of running the servers. Cloud has a cost benefit over the long term."

Cloud Computing | The Cost Of Not Moving To Cloud Is More Than You Think

Take IT operations. The expense of deploying and maintaining your own applications and infrastructure can be greatly reduced, if you outsource these to a cloud services provider. Instead of worrying about infrastructure and application costs, those become the cloud services provider's responsibility.

Costs can also be tailored to your needs - instead of making a massive upfront investment on your own hardware, clients need only buy as much capacity as they need, and pay only for services used.

Greater Agility

Once applications are hosted in the cloud, your cloud services provider also takes on the responsibility of setting up and troubleshooting software, reducing the need for in-house technical expertise and freeing your IT personnel up for higher-value activities.

With your business fully engaged in the cloud, your company enjoys greater agility - an almost priceless asset in a volatile competitive environment.

"One of the advantages of cloud based systems is that updates can be rolled out very quickly - within hours or even minutes in some cases," explains Andy Chou, co-founder and CTO of development testing company Coverity. "This rapid turnaround helps cloud services adapt quickly when they see issues, and you don't need to do anything manual to upgrade at your end."

Savings Lead to Long-Term Advantage

Not fully sold yet? Check this out: a 2012 survey conducted by Rackspace and market research firm Vanson Bourne found that their respondents enjoyed an average cost reduction of 23 percent, derived from cloud computing savings on infrastructure.

Fully 62 percent of respondents admitted that cloud computing allowed them to reinvest the difference back into their businesses. And adoption of cloud services improved respondent's profits by as much as 22 percent.

"Using the cost and time savings from cloud computing to free up resources for product innovation is giving these companies a long-term competitive advantage in the market," concluded Louis Columbus, Product Marketing Manager for Plex Systems.

If you've avoided taking your data to the cloud thus far, imagine what you've missed.

The All Covered Difference:

Moving to the Cloud can help your organization by offering a solution with greater reliability, reduced capital expenditures, and increased computing flexibility.  We would be pleased to discuss how our customizable Cloud Services would fit into your organization’s technology plan.   To schedule a complimentary assessment, please contact us today at 866-446-1133.JoiningtheCloudRevo#259C742 (3)