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Financial savings in the Cloud

In this blog, we thought we would discuss the financial savings which can be achieved through cloud.

Making savings in these tough economic conditions is a major consideration for any business however large or small and it is a serious factor when deciding whether to move to cloud.

The commercial model for cloud is very different to running IT infrastructure on a Do It Yourself basis when you need to buy your own equipment and software, pay for its upkeep and all the associated costs which are involved in making sure everything runs smoothly.

Cloud removes this expense because all your technology is deployed elsewhere rather than on your premises and is delivered back as a service and there for an operational cost, so you are making cost savings from a capital point of view as well as not having to train staff to remain up-to-date with the latest software.

Cloud is about high levels of automation and simplifying IT this allows service providers to minimise operational costs and on top of that they are able to leverage of economies of scale they achieve through pooling and efficient use of infrastructure. At SCC, we are able to leverage the significant relationships we have with the major hardware vendors giving us the ability to purchase equipment from vendors at a lower price than that bought by individual businesses.

At the same time, clients only pay for the amount of application, platform and infrastructure that they use as we operate a utility or pay as you go model. Compare this to an on-premise solution owned and run by a customer where they using only five or ten per cent from their server they are paying for 100 per cent. With cloud, if you use only five or ten per cent then you only pay for that.

This means cloud can often be more cost efficient which is an important factor when looking at the running costs of a business – and that certainly makes financial sense.

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