Is the cloud the most cost effective route to running your business systems?

Published Tuesday 24th November, 2015 by Simon Fowler

The use of the Cloud has been lauded and celebrated in business and technology circles since it was first available as an option many years ago. Despite some early set backs, uptake of cloud based systems and services has been growing rapidly, but some companies are still resistant or unsure of the level of benefit offered by making the move.

There’s one thing that’s for certain, IT is now absolutely central and engrained in all business functions; working without IT is no longer an option. How IT solutions are deployed however, is much more variable.

The in-house option

The traditional solution is to purchase a large number of servers, dependent on the requirements of your business and projected foreseeable needs. Once installation, software, upgrades and data migration are complete, an in-house IT team is employed to oversee, manage and support the system. In addition to the ongoing payroll costs, there’s the cost of maintaining and upgrading the system, as well as the eventual depreciation of the equipment before it becomes obsolete and, to all intents and purposes, worthless.

The cloud option

This is where the cloud really comes into its own. There’s an immediate and significant saving on the up-front cost of purchasing the equipment outright, which is the greatest reason many companies shift to the cloud. Although some businesses may not like the idea that they no longer own the servers their data is stored on, the major benefit of this is the ability to use the right amount of server capacity necessary for the business without the initial financial outlay. This frees up companies from not only the immediate expense, but because they don’t own the equipment, they’re not responsible for all of the subsequent expenses of maintenance, upgrades and security.

There’s also a significant financial benefit in that many cloud solutions allow for up-scaling, meaning that if activity suddenly spikes or the business expands rapidly, there’s the ability to quickly upgrade and expand the cloud service without having to purchase new equipment.

Our white paper ‘Facing the future …is the cloud right for you?’ explores the reasons why businesses can reap great benefits from the cloud, taking in financial, security and performance concerns.

Let us know what you think: @going_advanced

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