Understanding how cloud computing can save your business money requires a small shift in your thinking, first about the type of expenditure, and second about the quality of the product you’re buying.
When it comes to putting your key servers “in the cloud” you are shifting your spend from a high capital cost to a lower operating one. This means that instead of writing a cheque up front you get to pay in smaller increments as time goes on, these cash “savings” can then be re-invested in other areas of your business.
However, when you do simple math the cloud server will frequently “cost more” when multiplied out over the expected life span of your own server. So how can spending more actually save you money? First, you need to acknowledge that the server you buy and put on site is nowhere near as powerful and resilient as what the major data centres can offer. Your $20,000 server in house is not the same as renting $1,500 of space/computing power in a multi million dollar enterprise grade data centre. The second factor is scalability. When you plan to purchase a server for your business you need to build it in a way that will support the future growth and requirements of your business. So, if you’re expecting to replace the server every 5 years, you need to buy something today that could support the company at that time. When you put your servers in the cloud you pay for today’s requirements, as your business grows (or contracts) you can adjust the resources and the cost accordingly.
It’s not always easy to compare these options against each other. Although the end result is the same (secure file sharing, application hosting, network security, etc.) the benefits of each are very different.
Tier 3 I.T. Solutions has helped hundreds of businesses assess their server requirements to determine if moving to the cloud is right for them. If you have questions, we’d be happy to connect you with one of our IT Consultants who can help you through this process. Connect with us today.