How Cost Effective is Cloud Computing?

Cloud Computing

How Cost Effective is Cloud Computing?


Due to the mainstream use of cloud computing still being fairly modern, numerous companies express concern about using cloud solutions. Although switching to a cloud set-up can be redundant for a business with an existing IT team, cloud computing has proved to provide significant financial advantages for corporations, including expense cuts and an improved overall efficiency. Research published by Rackspace surveyed 1,300 organizations and discovered that 88% of cloud users saved in their costs, with 56% showing an increase in revenue. As such, we’ve put together a list of some great ways your company can save money by switching to cloud computing.



One of the greatest benefits of cloud computing is that hardware costs are reduced significantly. Rather than buying in-house facilities, the vendor decides what each company needs. New equipment can be big, costly and inconvenient, especially for businesses that are expanding fast. Yet, because acquiring cloud computing can be done rapidly and efficiently, this is no longer a problem. Better still, the suppliers take over maintenance costs and the replacement of hardware. 

Additionally, off-site hardware reduces the cost of internal power while saving you space, ideal for remote working and small-medium businesses. Without the need for large data centres, moving to cloud applications and storage solutions maximises a firm’s need for space, while reducing energy costs substantially. 


Labour and Maintenance

Another direct consequence of cloud systems is a drastic reduction in the costs of both labour and maintenance. When hardware is owned by suppliers and kept off-site, the requirement for an in-house IT team is reduced, if not eliminated, and since it’s the supplier’s responsibility, you save money if servers or other equipment require updates or repairs. By removing the need for routine maintenance, employees can concentrate on more important projects, or in some situations the number of employees can be reduced. Even if your firm has no IT department, cloud services will eliminate your need for expensive third party repairs. 



Cloud computing deployment is much quicker than the traditional installation process, being finished in a matter of hours, compared to the weeks or even months that typical company-wide installation can take. This ensures the workers will wait less and work longer. Cloud applications also shorten adoption time. Usually SaaS implementations can be learnt quickly and conveniently by using a web browser. 

In fact, the majority of cloud computing applications and programs are accessible through an internet connection everywhere. This is excellent news for companies that require frequent traveling, and perfect for remote workers. 


Capital Investment

Typically, cloud computing services are given on a monthly pay-out basis. Cloud platforms can be created, managed and developed depending on the company’s needs or average use of the product. Consequently, the cost of IT expenses can then correspond with the growth of the business, rather than needing substantial capital spending. 



Most companies generally claim that a data centre is more secure on-site than running it elsewhere. According to a report from comScore undertaken for Microsoft, 42% of SMBs not using cloud computing raised questions about the reliability of the cloud. However, 75% of SMBs who have implemented cloud technology reported they saw increased service availability as of switching.  This was fuelled by the improved server uptime experienced, and the level of support received from cloud service providers. 

Do you want to know more about how computing can help your company minimise costs and improve workplace efficiency? Are you looking to make a switch from traditional IT practices? Contact us on 0207 148 7860 or email at to discuss your company’s needs, and our team of experts will provide you with an array of business grade options to choose from.  

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