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The cost savings of cloud computing

By Max Burkhalter
May 4, 2021

Cloud computing has become a widespread application for companies with established IT departments and plenty of in-house equipment. However, switching to a cloud setup may feel like an unnecessary move. Well, the cost savings of cloud computing can actually help you balance your budget and increase workplace productivity.

According to Tech Republic a major driving factor for cloud adoption among IT professionals has been cost savings. One survey showed that nearly 95% of respondents said use of the cloud would reduce both setup and maintenance costs, and nearly 50% stated that their IT costs could drop up to 50% by implementing cloud apps and infrastructure.

Flexera notes that simply moving to the cloud doesn't maximize cost savings — you have to act with purpose. Almost 35% of organizational cloud spend is wasted on average, but taking a focused approach can help recoup most of that cloud spend within just a few months. On-demand cloud spend can provide extreme cost savings by eliminating idle resources or downsizing over used resources.

Some of the many ways cloud adoption can drive cost savings include:

With cloud computing, hardware needs are the responsibility of the vendor, and you won't need expensive in-house equipment. If your company is growing rapidly, a constant need to invest in new hardware can be an inconvenient expense. Switching to cloud computing can alleviate these issues and resources can be acquired swiftly and scaled on demand, giving you freedom and flexibility you can't achieve on-premise.

Repairing and replacing equipment is also the responsibility of the vendor. This shifts budget from capital expenditure to operational expenditure. It also reduces costs by eliminating the need for an in-house data center, which can take up valuable office space, and also produces a large amount of heat which must be cooled. Cloud applications and storage maximize your real estate and significantly reduce energy costs.

Labor and maintenance costs can also be reduced by using cloud solutions. Since hardware is vendor supplied and your data is stored offsite, you don't need a large contingent of in-house IT staff. When servers and other hardware require upgrades or repairs, these tasks fall to the vendors, freeing up your staff. 

Thanks to increases and workforce productivity, cloud computing can add even more cost savings. By deploying cloud software, you cut installation times from weeks or months to just two hours. Your employees will spend less time waiting for software deployment and more time working on new initiatives.

Cloud solutions are also extremely easy and intuitive, cutting training time for employees and speeding adoption across your company. Software as a service applications are typically web browser-based and the applications can be accessed from anywhere with an Internet connection. If you have diversified your workforce, moving to the cloud can make your employees more efficient wherever they work from.

Cloud computing is no longer considered a new technology, but many enterprises are still wary of ceding too much control to the cloud. If you aren't ready to shift fully to the cloud, you can still move certain things like data storage or applications to the cloud to streamline your operations and reduce costs. Perle can help you balance on-premise solutions and cloud applications with the hardware you need on-site to keep things running as you migrate less sensitive operations to the cloud. Read our customer success stories for more details.


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