Does Cloud Computing Reduce Costs?

Technology is accelerating at a rate we cannot believe. Just 25 years ago, most organizations were only electronically connected to their internal servers and databases. However, some organizations such as hospitals and universities were "electronically sweet-talked" into the cloud. Small organizations with little IT budget ended up as early cloud adopters.

In 2020, 61% of businesses migrated their workloads to the cloud. By doing so, these businesses could plan out and raise their budget for the future.

The businesses decided to cut costs and work more efficiently that way. Is that something you feel you could benefit from it? It depends, read on to learn how cloud computing works and how cost savings may come out of utilizing it.

What is Cloud Computing?

Cloud computing is where a company will utilize servers to store their data in a remote location. These servers can be privately owned by the said company, a third-party organization, or both. The company will have to pay for its hardware, software services, updates, and IT team to be used privately. Holding one's own cloud on-site will require a lot of money. If utilizing a third-party organization for cloud computing, the company using it will only have to pay for what they're using - cloud storage. The third-party maintain those servers, hardware, software updates, and security.

Having a hybrid approach gives lots of cloud computing benefits. A company can house its own cloud server and use a third-party organization's cloud services. This option provides the flexibility of transferring data between privately-owned cloud and third-party and optimizing infrastructure and security. Not only used for storing and backing up data, but cloud computing can also be used to analyze data, stream services to customers, and create apps to deliver to the public.

Flexibility in Cloud Computing

Cloud computing comes with the ability to access and scale your business from anywhere. You can access your cloud network as long as you have an internet connection. Additionally, it can help your business upscale or downscale with greater ease. As remote jobs become more prevalent, it sets up more flexibility for employees who need access to company data. Features like this mean fewer costs for hardware at the office and the employee, giving them the ability to work more efficiently.

But with remote workers comes more chances of a cyberattack. Their personal systems can be compromised, and the cybercriminal will try to access the cloud. Luckily, a cloud service can provide monitoring and heightened security to lock out the threat.

Cloud Computing and Security

Uploading data and files into a facility far away may seem off-putting, but it's safer than you think. Cloud services ensure their servers are off-limits to most people and will encrypt files with their technology to combat possible security threats. Security is but one of the many cloud computing benefits. Cloud computing services will regularly update security and software so companies like yours can run operations smoothly and safely.

Different Services

Cloud computing comes in different forms of services. Here's a quick list:

• Infrastructure as a Service (IaaS): Is the "basic" level where you rent servers, networks, storage, and other necessities
• Platform as a Service (PaaS): Provides tools for researching, developing, testing, and managing software
• Software as a Service (SaaS): Used for delivering software services to clients and customers (think about Salesforce and Dropbox)

Cloud service providers can offer these options to help your company get tasks done without pressure. This saves more money because you don't have to spend extra money on software and development when you have a platform provided.

The Future of Cloud Computing

As cloud computing moves into the future, we can see the industry's value grow exponentially. Cloud computing will also be expected to improve on services and internet performance. More space will be provided at a cheaper price as storage will continue to do the same - to think 64GB USB drives used to cost $100 or more! Security will continue to improve and so will developed apps. Cloud computing will be the future.

Exploring Options

In conclusion, cloud computing cost savings come in different ways. It can save money by reducing hardware costs and IT specialists needed to maintain the cloud servers. Cloud computing services also provide flexibility, so it's easier for your company if you need to scale up or down. This can make employees work more efficiently without worrying about IT issues and cloud services.

If you are looking for a way to utilize cloud services, contact us to learn how we can help find solutions for your needs.