Clay Magouyrk, SVP of Engineering, Oracle Cloud Infrastructure on Quora states “Our customers are typically saving overall 30-50% by moving their applications to our cloud in comparison to refreshing their infrastructure on-prem, or running on other clouds.” With the help of Oracle Cloud, CARE, a leading humanitarian organization estimated that they had saved $250k over the past year as a result of leveraging OCI in practices.
Cloud computing is swiftly becoming the go-to option for the top business of modern days. Though for most companies, shifting to ‘The Cloud’ may seem like a logistical inconvenience and unnecessary expense. Nonetheless, it would be incredibly unreasonable for any company to dismiss the cloud outright. For, utilizing its potential can provide these companies full access to their crucial business information with minimal spend on technology infrastructure.
This blog is for all the newbies out there who are apprehensive about adopting cloud solutions and are all confused about howit can help their organizations achieve significant cost savings.
Stick around to understand how ‘moving to the cloud’ can help you save your business money.
The Economic Benefits Of Cloud Computing
Beyond monetary, cloud technology has innumerable benefits but its cost-effectiveness is one of the primary reasons that often most business and business leaders decide to make the switch. Here are some golden ways cloud technology possesses the potential to save your business money-
1. Hardware Savings
One of the main advantages of cloud computing is that capital expenditures can be reduced greatly. Instead of having to acquire costly in-house hardware, equipment, and operating systems, all such requirements are handled by cloud providers.
Unlike traditional software models, for applications running on cloud solutions, no licensing fees are needed for initial set up costs. Additionally, as upgrades, updates, and software enhancements are carried out by cloud vendors, the owners of such tools remain stress-free. They always know that theirsoftware would remain up-to-date without having to incur any of the cost in upgrading it or the infrastructure.
2. It Improves Collaboration
Cloud computing tools like plagiarism checker can be used on any device. All you need to do is have an internet connection to use these applications. If your organization has remote employees, you can collaborate with them through cloud computing. Your employees would sign up and can access the program online to share documents, tasks, and responsibilities. Not only that, but it also helps mobile app builders develop and launch an app on cross-platforms like iOS and Android, and can be accessed by anyone from any part of the world.
3. Lower Electricity Costs
“How can cloud computing applications reduce electricity costs?” This question often seems to be trending on spell checker online forums. Let us tell you, due to economies of scale, cloud computing always makes use of less electrical resources. Cloud providers are much efficient at forecasting and allocating resources than average organizations. Thus, a cloud service provider can charge you for less energy utilized than what you would spend in your own data centers.
4. Reduced Maintenance and Labor Cost
With cloud solutions, more and more companies can achieve significant scale economies through lower maintenance, support, labor, and running costs. Any significant hardware issues are maintained and managed by the vendors. Hence, if repairs or upgrades to the hardware are required, it becomes the sole responsibility of the providers to ensure that the relevant changes are implemented. This not only provides cost-saving benefits but in most cases, it also enables the company in streamlining its IT force.
5. Resilience Without Redundancy
When you tend to manage your business servers and other hardware, you always need to purchase spare parts and often redundant systems to protect you in cases of failure. On the basis of the criticality of the servers, you may even need to duplicate them. These costs can add up incredibly quick.
On the other hand, typical cloud service providers have various locations for their data centers. They often mirror your data and applications across at least two of them. Disaster recovery and redundancy are already covered. This is more cost-effective upfront and you would no longer need to deal with redundancy and backup in the long front.
6. It’s Good For The Environment, Too
Whether or not they believe in global warming, most companies truly want to do something about it. When you move to the cloud, you can be greener in two ways.
Firstly, you would be saving energy which will help you save on operating costs. Secondly, having everything on the cloud means rarely they have to print anything. Like, if you say ‘rate my paper ’ to stalwarts, you won’t have to print out the final solution. You can download the modified version and submit it directly to your institutions.
The Companies Who Said ‘Yes’ To Cloud Computing
For Accenture, Cloud is their only new future. The professional services firm, Accenture is completing a three-year journey to cloud computing. In the year January 2015, the internal IT department organized a global cloud team to deliver a more scalable and reliable enterprise IT infrastructure. In the present day, Accenture has more than 95 percent of its IT operations in the public cloud. As a matter of fact, the shift to the cloud has also helped Accenture make $14.5 million in benefits.
A manufacturer of printers and digital copies, the company Riso had to face innumerable challenges with its existing IT environment. To turn the table, with the help of a detailed plan in place, Riso migrated to the cloud of Amazon Web Services. As per Chris Gattoni, the manager of IT at Riso, the switch to AWS reduced total IT operational costs by 55 per cent and cut down its backup infrastructure cost by 35 per cent. They could also reduce the number of IT vendors from 6 to 3- which is huge savings.
3. Myer Briggs
The provider of people development products and services, Myer Briggs is popularly known as the Myer-Briggs Type Indicator assessment. It has shifted its backup, primary data storage, and disaster recovery into ClearSky’s Data cloud-based, on-demand storage service. Due to this, the organization has seen a 70 % decrease in total data center rack space and a 75% decrease in colocation operating expenses. Not only that, Myer-Briggs is expected to make savings of $150,000 over five years on the cost of storage capacity and backup system licenses alone.
Netflix trended in the headlines when it shifted from a private data center to the AWS public cloud. The shift from mail-in-orders to a cloud streaming service improved customer satisfaction and helped Netflix make billions.
In fact, this child poster company of cloud computing now sits at a valuation of almost $145 billion. It also made the company stock skyrocket by 6,230% in 10 years.
Pinterest, the popular digital bookmarking site, launched on AWS in 2010. Since then, it expanded its business to tens of millions of users, as per the AWS case study. In 2020, the company which is now valued at over $12 billion, has crossed 200 million active monthly user threshold after making the shift. It has 100+ billion pins and more than 85% of searches take place on mobile devices.
Now, cloud computing is a mainstream alternative for companies of all sizes and shapes. More and more businesses are adopting cloud-computing services, and it’s providing them with a competitive edge successfully. We recommend moving your business right away to the cloud as it can help you save fistfuls of cash. It will also allow you to focus on expanding your business and not on your own IT footprints. Wishing all the luck for successful cloud computing!