Cloud computing offers immense agility, scalability and cost-efficiency for running and storing enterprise databases and applications. Our comprehensive cloud cost benefit analysis will prove it too. Millions of small and large companies have already adopted one or more cloud-based services into their operations. The majority of leading brands in the retail and entertainment industries have shifted their business database and applications completely to the cloud platform.
Here are some quick stats to show just how immense and beneficial cloud technology is for those seeking efficiency and scalability as well as cost-savings in their business operations.
How is Cloud Computing Beneficial?
According to a report by 451, around 90% of companies globally used one or more cloud-based services with an estimated 60% workload being handled by cloud technology. By 2021, Cisco estimates that cloud data centers will be processing 94% of the workload of business applications. According to Statista, the revenue from the global cloud computing market reached US$ 258 billion in 2019 and is expected to grow exponentially to an astonishing US$ 623.3 billion by 2023. In this, the largest public cloud market is the US which spent around US$ 124.6 billion in 2019, according to IDC.
These cloud cost benefit analysis figures prove that cloud technology is the future of the web. Hence, increasing numbers of businesses are choosing to shift their business applications and database to cloud servers from conventional on-premise servers. Although there are numerous benefits of moving to cloud technology, one of the most prominent one is its cost-efficiency. Every enterprise owner knows the importance of capital, especially when investing in a decision that calls for a dynamic shift from in-house servers to the cloud platform.
How is Cloud Computing Cost-Efficient?
Operating an on-premise IT infrastructure involves frequent server crashes, software bugs, coding errors, employing an in-house IT team and expensive upgrades to maintain your enterprise IT architecture. Some of the aspect of in-house IT infrastructure which frequently incurs charges are:
- Network
- Software
- Hardware
- Security
- Disaster recovery
As your business grows, your IT resource needs will also grow in proportion. This makes the operation and maintenance of on-site server banks expensive and time-consuming.
However, with cloud technology, there are hosts of advantages and financial benefits to be had. Our cloud cost benefit analysis report shows the major financial benefits of adopting and using cloud technology for enterprise applications and databases.
1 – Make full use of hardware
Cloud computing supports virtual services and brings a natural economy of scale with it. There is no need to purchase new hardware and equipment when you make the move to cloud platforms. The cloud servers provide you with sufficient hardware to suit your requirements.
Apart from avoiding the charges of buying new hardware equipment, the cloud platform also makes long-term operations more cost-efficient with the “pay-as-you-go” payment model which charges users only for the IT resources that were used. Conventional server databanks are made to handle storage data at maximum workload limits, which eventually racks up significant charges when the complete hardware resources are not in use.
2 – Lower utility bills and carbon footprint
Conventional server banks require immense power for operating round-the-clock. As the business grows, the number of servers is increased to get more processing power. This leads to higher energy bills. However, moving your enterprise applications to the cloud platform helps to drastically cut down the carbon footprint of your business and reduce your electricity bills noticeably.
3 – Decrease operational cost of business
Every business has a unique perspective on getting the best ROI from cloud technology. Mostly the Operations Expenses (OpEx) and Capital Expenses (CapEx) are considered to estimate cloud ROI. However, according to a report by Forrester, more than 50% of the total cost of cloud migration consists of labor and not infrastructure expenses and platform service charges.
However, when you chose to hire professional cloud migration service providers, you can cut down on operational costs significantly. In addition, the cloud platform is likely to cut down your IT staff as it is a completely managed service.
4 – Lower cost of capital and investment
Conventional on-site servers require investing significant capital. On the other hand, cloud services provide higher utilization and scalability, which requires noticeably low capital investment. There is numerous small and large expense associated with maintaining and operating on-premise data banks.
However, with cloud technology, companies can save significantly on capital expenses and use these savings by investing it in the core aspects of the business.
Bottom Line
These are the four major points from our comprehensive cloud cost benefit analysis study. If you are considering shifting your enterprise applications to cloud servers, make sure to hire experienced migration consultants to ensure a smooth and seamless migration process.