Cost Savings from the Cloud

By Superior Blogger | Published November 14, 2012

The benefits of cloud-based computing solutions are vast. Cloud based solutions provide cost effective, flexible, scalable and secure IT applications and services while minimizing risk and improving service levels. The cost savings are significant and are found in many aspects of cloud computing versus the traditional in-house, on-premise computing model.

Overall, the basis for the costs savings is in the efficiency of shared resources, talent and scalability across many clients that cloud service providers deliver. In addition, the overhead associated with hardware, software, maintenance and resources required for in house systems are eliminated. Organizations can quickly take advantage of the following benefits delivered by cloud computing solutions:

Capital costs are dramatically reduced. Cloud service providers handle the full provisioning of hardware, software and the accompanying infrastructure to support your suite of applications. No longer do organizations face major up-front costs when deploying new enterprise applications.  Instead, monthly fees based on usage make budgeting much easier.

Reduction in technology staff and support resources. Ongoing management of infrastructure is no longer the responsibility of your organization. All the time spent maintaining servers, software, and maintaining applications is moved to your provider. The resources required to perform these tasks can now be redeployed to focus on your core business competencies.

Reduced ongoing administrative costs and costly service interruptions. Security patches, OS upgrades, broken drives, failed power units – they’re no longer your problem!  The manpower spent and the risk of downtime falls within the responsibility of the cloud’s service provider, and they’re guaranteed by service level agreements. Extreme weather events that cause long electrical and communication outages can also be avoided. This allows you to focus on what’s important—running your business.

Competing cloud solutions keep prices optimized. The economies of scale that cloud service providers achieve by serving many clients allow the cost savings to be passed on to you. The cost of power, cooling, and network bandwidth for the provider is dramatically less per unit than most business organizations. In addition, competition for cloud-based services means that providers are always under pressure to further reduce costs, and your organization is the primary beneficiary.

Usage based cost.  You only pay for what you use. Today’s fast scaling (both up and down) enables organizations to meet the ebbs and flows of demand on their infrastructure. Cloud service providers charge per unit of processing time, allowing organizations to enjoy the benefit of paying only for what is consumed – no more expensive servers collecting dust (but still using power and cooling) during down times.

Stay current with technology. The cost of maintaining current and compatible technology is passed on to the cloud service provider. As a result, you receive the benefits from evolving technology without the cost. Organizations no longer need to be concerned with costly hardware maintenance or worrying if there server can be fixed or replaced in a reasonable amount of time. Expensive application upgrades and compatibility concerns are also eliminated as the cloud service provider takes on the responsibility of planning upgrade paths and maintaining compatibility.

With further questions about the cost savings associated with cloud-based solutions, contact Superior Technology Solutions. We look forward to sharing our extensive technology background with your organization. For more information, visit us on the web at or call us at 845-735-3555.

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