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Planning to move to business computing to the cloud? There are a number of different reasons why you might want to do this. For one, it’s actually more secure than you might think. For another, you have the resources of an entire team of dedicated cloud service professionals at your disposal. You’ll find that they are actually more efficient than most companies IT teams because they only have to focus on keeping the cloud servers running. However, there are a number of financial reasons why moving to the cloud is a great idea. Let’s take a look at four of these reasons and see how the cloud can actually save you a lot more than you might think.

There’s No Upfront Cost

There’s not a lot of upfront investment or cost with using the cloud. That’s because you’re actually paying for a service, not for hardware or anything similar. Here are some of the upfront costs you’d have to pay if you were putting in your own servers:

  • Storage space
  • Cables or wireless routers
  • A larger IT staff
  • Extra training for your IT staff to handle server needs
  • Server security software

There are some other costs you’d incur, too, in order to get your servers up and running. But if you go to the cloud, you’re not going to have to purchase any of these things. All you’ll need is your computers or other devices and an internet connection. Now you can store all of your documents, databases, and other files in the cloud and retrieve them whenever you need to. Don’t need those much space? Then you won’t pay for it! Unlike buying large hard drives for your own servers, you’ll only need to pay for what you use in the cloud. It’s perfect for small businesses that have a very limited budget, but even large companies can benefit from this pay-as-you-go method. For instance: If you are planning for a deployment of SAP financial management software, rather than going for an on-premise implementation, you can go for SAP HANA enterprise cloud which ultimately saves on the servers hardware as you just need to take a cloud service; moreover, it is an easier and comprehensive solution for deployment.

There’s Less Risk

Because you’re only paying for what you need, there’s less risk involved in using the cloud. You won’t have to worry about stretching your budget too far or using up all of your extra funds early on. Instead, the subscription-based fee structure means you can pull back if you find yourself running up against the edge of your budget. You can also easily remove certain software or other options if you decide you don’t like them—it’s not like you’re actually buying the software and are stuck with it, nor have you committed to buying a license for an entire year. Simply add or remove subscriptions as you need to. Any risks incurred are done so by the cloud service provider, not by you.

This also goes the other way. You don’t have to risk suddenly realizing that you need additional software, more licenses, or more storage space towards the end of the fiscal year when your budget may already be stressed by unexpected costs. If you reach that point, you don’t have to allocate a large amount of money to buy new hard drives or software. Instead, just add to your subscriptions or rent additional hard drive space. Since you only have to pay for what you need, you’ll find that this is much cheaper than buying everything yourself.

There are Lower Electric Costs

Another way you save money using the cloud is on power costs. It may not seem like it would be a major savings, but by not having all of those servers and other hardware needed to run your own data center, you actually use a lot less electricity. You’ll find that the amount of money you save on your electric bill counters some of the costs of your cloud services.

In addition to saving money, you’re also reducing your carbon footprint. Rather than you and other businesses using all this energy to run your own data centers, one cloud company is using less power to provide all of the same, if not more, data storage and other services. Showing your customers that you’re going green can give you a nice boost in business.

Lower Operational Costs

Finally, using the cloud helps reduce the amount of operating costs your company incurs. We’ve already looked at how you will save money by paying only for the services that you need. But there are a number of other ways that the cloud helps you decrease your operating costs. You may not need as many IT people because you won’t have to have a dedicated employee or employees working on your data center servers. There are no maintenance costs more there.

But you can also make use of some different technologies to cut your operating budget. For example, you can use a cloud based phone system to save money in several ways. With this cloud phone system, you won’t have to have any phones in your office. Instead, all of your calls are routed through the internet. Every employee can have their own business phone number that they can take with them no matter where they go. They can have calls to this number sent to their own cell phone, their tablets, or their computers. You won’t need to install any hardware at the office or deal with maintenance or break downs.

You’ll also save money on making long distance or international calls. This is great if you have clients in another country or are working with another branch office or business overseas. In addition to voice calls, they are fully integrated with Microsoft Office 365, so sharing files is also very easy.

Are you Ready to Start Saving?

If you are already thinking to start saving and not certain where to cut your budget, it is demonstrating that you need a transition to the cloud. You may be surprised at just how much money you can save, even if you already have spent money upfront to build your data center. If you’ve moved to the cloud, how has it impacted your bottom line? We’d love to know how using the cloud has saved you money and helped improve your business.

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