Top Ten Benefits of the Cloud: #1 - Reduced Costs

When analyzing cloud computing for your business IT solutions, one of the most important reasons the cloud can help is to reduce IT expenses.

Cloud computing reduces your hardware (computers, software, downloaded programs), networking management and overall IT expenses.  To go more in depth, here is a brief, yet detailed summary of other ways directly reduces costs:

1. Pay only for what you use – IS Support's Cloud Cumulus solution operates on a pay-as-you-use model, or in different terms, a demand-only model. With IS Cumulus, you only pay for the services you require and use. This works out to be much cheaper than acquiring barely used equipment.



2. Running costs – In addition to usage, running costs comprise a significant portion of the annual IT budget. By shifting to cloud computing, your company is free of those expenses such as upgrades, physical maintenance, personnel salaries, etc.

3. Economies of scale – Cloud computing can utilize economies of scale to offer cheaper rates to your business. In other words, the service providers can buy IT equipment in bulk to lower unit acquisition costs, and part of the cost savings are passed on to their consumers. Consequently, this price is much lower than what you would pay to buy similar equipment from the retail market

4. Investment costs vs Operational costs - Acquiring expensive equipment is considered a capital expenditure, which can be costly. As the equipment ages, this acquisition depreciates over time. With cloud computing, a one-time expense is spread across several operational cycles, becoming part of operational costs providing a much better alternative. Factor in the time value of money, and the balance shifts even more towards cloud computing.

If you would like to learn more, or find out exactly how our IS Cumulus solution can provide your company all of the above benefits and more, contact us for a free consulting session!

Stay tuned for the next part of Cloud Computing benefits: Scalability