If money talks, then cloud computing has a lot to say to businesses.
Research shows that small enterprises have been able to double their profits by adopting the cloud. Meanwhile, a separate survey conducted by UC Berkeley shows that companies that adopt cloud computing can cut expenses anywhere between 40-95%.
Cloud computing is no longer just a technology; it’s a viable business strategy with major economic advantages. Here are the main reasons why it’s a must for enterprises:
Cap-Ex Free Infrastructure
The cloud’s first great advantage is that it lets you use pre-existing IT infrastructure, which you can subsequently scale according to your needs.
By subscribing to a cloud services provider, you can get computing capacity, bandwidth, and data storage on demand. You provision these in a matter of hours, not days or even weeks as with typical onsite IT infrastructure.
For start-ups, this offers a tremendous edge in terms of cost and speed: with no initial capital outlay, you can hit the ground running with production. For mature businesses, the cloud allows them to quickly provision additional resources to meet surges in demand.
You may even configure your settings to automatically raise or lower your usage as needed, depending on the demand for your services. This prevents something like a large spike in viewership from bringing down your video streaming website.
Likewise, if you need to scale down operations, you can bring down your cloud usage and not have to spend money to get rid of unwanted infrastructure.
Lower operational cost
As your business grows, your IT costs grow with it.
You will need more computers for servers and workstations, which means higher power costs, as well as additional cooling facilities and higher rent. Not to mention more personnel to maintain your data center, installing security patches and upgrades to your machines on a regular basis.
The cloud, on the other hand, centralizes your entire IT infrastructure, translating to lower rent, lower power costs, and you no longer need to pay for maintenance.
With that much freed up capital, you can reinvest your savings back into your enterprise and multiply your benefits!
Economies of Scale
Another edge to cloud computing is that it provides greater benefits at a low cost.
Amazon Web Services in particular has been leading the pack in terms of innovating for automation and cloud technology. This is R&D that users don’t didn’t have to pay for but will unilaterally benefit from.
Economies of scale work another way: as more users sign up for cloud services, AWS tends to pass on profits back to customers by lowering usage fees. To date they have lowered their fees 51 times.
Cloud services are also relatively simple to use and costs no manpower to maintain. As such, companies need fewer people to be more productive.
Employees require less training to use cloud services, spend less time on maintenance or provisioning, may work anywhere they have an internet connection, and can monitor projects and results with ease.
Everyone knows that if you lose your data, you also lose your business. The cloud can protect your data by providing long-term storage in highly-secure environments.
Losing a laptop can hurt your business worse than just losing an expensive piece of machinery—that irrecoverable data on your hard drive can cost you even more. If you have it backed up on the cloud, though, you have much less to worry about.
By using cloud computing in conjunction with your own data center, you can also have the redundancy you need in case of downtimes.
Shorter Business Cycle
The longer it takes to get your product to market, the more costs you will likely incur. Thankfully, the cloud can help cut out bottlenecks and delays.
You can obtain the computing power, database, and network connection you need from the cloud in a matter of minutes. Companies creating apps can easily build a production and testing environment in the cloud, with all the tools they need just a click away.
Your people get more done with less time spent on provisioning, configuring, and training. Your company can therefore deploy its projects faster and get results sooner. This in turn makes it easier to get feedback, make rapid business decisions, and adjust to trends in the market.
Let’s look at a real life economic example. By partnering with AWS, TIBCO was able to speed up their business and reduce costs by 50%.
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If you are looking to adopt cloud computing, you can make your investment count by seeking expert advice. Speak to our AWS-certified consultants at PolarSeven on how to make a safe and secure transition to the cloud.