No matter what your business is, the cloud is one of the most effective tools for improving efficiency and productivity. Cloud solutions are a more cost-effective option for businesses compared to traditional on-premise IT infrastructure. Many take advantage of the benefits that cloud computing offers, such as lower cost and flexibility, but some businesses still think they don’t have enough money to invest in cloud computing or don’t see the value in it. Costs continue to rise for everyone. As a result, many are looking for ways to re-evaluate their budgets and how their money is being spent while maintaining company standards. In this article we’ll cover ways cloud solutions are cheaper than on-premise solutions and how migrating can save you money.
6 Ways Cloud Solutions are Cheaper Than On-Premise
With the right cloud solution, you can get more value for your money than you every could with on-premise. Cloud solutions can cut costs and save time when compared to traditional options. Here are six ways that cloud solutions are cheaper than on-premise:
Over a 5-year period a company could save an average of 79% on its IT budget by opting for a cloud solution
Reduces the Necessary Amount of Hardware
Cloud storage costs are more predictable: there is no need to anticipate future needs for more space or make sure you are buying enough hardware at once – the cloud providers will do that work for you. Over time, using cloud solutions will save you money compared with installing hardware on-site because it allows organizations to avoid capital expenses by avoiding new infrastructure investments like servers and racks for hosting environments. Even if a business starts out with low usage levels in the beginning, its cost will go down over time as usage increases because there is no need for additional equipment purchases.
Lower Initial Invest
Cloud storage costs are fixed and predictable, so you know exactly how much you are going to pay for date storage over the course of a month or even a year. This makes it extremely easy for you to budget for cloud costs. In contrast to cloud storage, on premise hardware will require a large initial investment, which can be unpredictable, require maintenance, power consumption costs, and need up-keep when something goes wrong with the hardware or software itself. The cost of setting up an in-house system can be prohibitively expensive while its on-going operational expenses, including repairs and replacements, are often unknown until they occur.
The average savings from cloud migration is 15% on all IT spending
One of the biggest benefits of a cloud-based solution is that is can be scaled up and down in real time, according to your needs. This mean that you don’t have to worry about having too much storage capacity or processing power, which can result in spending extra money on hardware you don’t need. Adding more space or bandwidth is as simple as making a few click and you are done.
In contrast to on-premise solutions, you must purchase additional hardware and software licenses before you can start adding more users or data storage capacity. When you buy all your equipment upfront, it can be hard to scale up or down as needed. If you have a lot of users and not enough capacity for everyone’s data, then eventually you will run out of space. You also must maintain these systems yourself which can be very time-consuming if the number of servers does not grow at a steady rate.
Downtime and Loss of Productivity Costs
Cloud solutions have sophisticated monitoring tools that alert them when something goes wrong with one of their servers or storage devices so they can fix the problems before it takes down any other services or affects users’ operations negatively, which can also greatly impact your bottom line. Businesses who rely on cloud solutions are often able to significantly speed up disaster recovery efforts. On average, cloud solutions were able to recover in 2.1 hours, compared to the average 8+ hours for on-premises solutions.
Costs linked to hardware, such a HVAC, are not necessary for cloud solutions and can save a company up to 58%
Reduce Energy Consumption
One of the big costs related to on-premise solutions is climate control and space needed for hardware. It is essential to maintain a temperature in a server room in order to prevent overheating of hardware. For servers to run smoothly and efficiently, dedicated power routes and circuits are needed, along with backups that are ready to kick in during spikes. The cost to power, cool and maintain your servers can be immense, but the space needed to house all of it can come at a premium. Your office space needs to have space for your server room and that can get expensive. Offloading your infrastructure to the cloud will not only cut costs on the size of office space you need, but also the power required to keep it all running.
Less Labour and Maintenance
One of the most common ways to save money on the cloud is through a lower cost of support. The infrastructure, networking and security are all handled by your provider – you don’t have to worry about managing those things yourself. This removes a huge chunk of work from your plate that could otherwise be used in other ways.
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Cloud Solutions are More Cost Effective than On-Premise
When it comes to data storage and management, cloud solutions are gaining popularity due to their flexibility, scalability, and cost-effectiveness. Cloud systems allow you to add more servers or storage as needed, without having to spend thousands of dollars on hardware up front, while enabling users to easily access information from anywhere and anytime, around the world.