Cloud computing, arguably, is synonymous with cost-saving. In fact, most organisations that opt for the cloud, do so for cost optimisation and to save money. As per RightScale, monitoring of cloud resources is the top cost optimisation strategy for enterprises and SMBs equally. As seen by the massive recent shift to the cloud across industries, cloud offers a host of advantages – both direct and indirect – when it comes to saving and optimising costs.
The cloud also covers a range of services that meet requirements of storage, security, disaster recovery, backups and the likes. A cloud service provider (CSP) usually offers all these services to businesses so that business continuity is maintained and compliances are met. A CSP is, therefore, the go-to for a business’s cloud and technology requirements.
Here’s a primer on how you can save money with a cloud service provider.
Cost Optimisation 1: Resource
Hardware Costs Reduction
When you opt for a cloud, the cloud Service Provider (CSP) is going to deploy the hardware upfront for you. Running your own servers entails high costs for installation and unplanned expenses for maintenance. Using cloud, you can just avail the use of the server on a pay-per-use basis and so this cost of IT infrastructure and maintenance is reduced.
With an in-house IT setup, there is the constant need to update software and go for upgrades. In contrast, the CSP updates the software for you and adds it to your subscription or access bill.
This software upgradation cost-saving is a very valuable benefit for small start-ups and their fledgling concerns. This is because they do not have the need to upgrade once every 3 years or keep track of new technology or invest in such costly updates.
Having your own IT setup involves paying high amounts for electricity even when you don’t fully use all your servers. This is mostly when workload is low. However, in cloud, the CSP allows sharing of its server, network and data centres with other organisations. So you save on power costs as you pay only for the power you consume.
As your business grows, you will be in need of additional hardware and software resources. These involve high costs which cloud computing overcome by design.
Since the cloud is scalable, additional hardware or software resources are provided by the CSP on a pay-per-use basis which makes it easy on the cloud user’s pocket.
Cost Optimisation 2: Process Management
Reduction in Staff
With cloud, all your networks and data are managed by the CSP which means your infrastructure maintenance workforce is reduced. This also means your technology and engineering teams can focus on delivering actual business value to customers as opposed to managing infrastructure.
Using your own servers may have its own bottlenecks. For instance, server maintenance alone will affect workflow and put it on hold for a couple of days. But in a cloud, where hardware is maintained by CSP and used on a subscription or per-use basis, these ups and downs are smoothened to get an uninterrupted workflow.
Cost Optimisation 3: Data Management
Cloud offers elasticity in storage of data. With cloud, you can resort to normal storage methods for regular data and high security storage for confidential data. This elasticity yields abundant cost-effectiveness for the user.
Data Security is an ever-present anxiety for a cloud user. Using locked cages and access control via biometrics, the CSP ensures tamper-proof security for your cloud data. Loss of data can prove costly for you in terms of work and money and cloud helps you avoid this.
System failures are like heart-attacks for an IT user. cloud saves you from these perils by offering multi-tenancy. In the event of a system crash, CSPs can allot you with alternate hardware resources without interruption of your workflows. In fact, CSPs handle system diagnostics, monitoring and troubleshooting, all at a low cost, allowing to you to work hassle-free.
Automatic Duplication for Data Loss
Data duplication becomes a must in case of system crashes. At such times, cloud comes handy as it has abundant data space. CSPs often maintain at least two copies of your data so there is no need for data duplication as there is no data loss. This automatic data backup by the CSP is an extra advantage to cost.
Cost Optimisation 4: Compliance
Cloud takes care of your certificates and compliance issues. The CSP ensures that your cloud data conforms to industry norms and provides the relevant certifications with validity. Although this is chargeable, you need not go through the hassles of renewing expired licenses, applying for new certificates or conducting audits.
The CSP takes care of all of these. There is a tremendous yet hidden saving here as all of the above are costly affairs.
Cost Optimisation 5: Environmental
Cloud computing can be seen as an eco-friendly option as it saves energy and reduces the carbon footprint of your data storage. By network-sharing, resource-pooling etc., organisations can drastically reduce energy consumption. There are also options like containers and unikernels that greatly reduce the very need to spin up more hardware and resources.
IndiQus helps businesses unleash the power of the cloud through technology, strategy and cloud design. We come with extensive years of experience in the telecom and cloud services domain, and understand the needs of businesses – small, medium and large. Hit us up for a chat on how we could be of help.