The Cloud is generally used for storage, conferencing, and collaboration. Cloud computing is often described as a utility because you pay as you go for the services that you use, making it immediately more economical.


Hardware Cost

The Cloud is a network of servers that are hosted on the internet, to store, manage, and process data. Therefore, you can reduce your costly onsite infrastructure. Hefty, upfront or recurring, capital expenditures are eliminated. The costs to run and maintain your network are included in a monthly fee from the Cloud provider. As a bonus, you can expect the hardware in a Cloud environment to be much higher quality and more reliable than your on-site network. A Cloud provider can’t afford a disruption in service to its clients. When upgrades are necessary to the server, switches, firewall, storage, etc., the Cloud provider will take care of them with no added cost to you.

Software Cost

Also included in a Cloud provider’s monthly fee are the expensive infrastructure and software licenses and upgrades. You are no longer responsible for purchasing infrastructure software like Windows Server, SQL Server, Application and Database Servers, Client Access Licenses, Middleware, SharePoint, Citrix Server, etc.

The software upgrades, too, can be hosted in the Cloud and paid for in your monthly fee. There will be less downtime and interruption in your business which is an additional savings in the long run.

IT Cost

You may not wish to downsize your IT staff, but resources can be shifted to allow them to concentrate on other applications or projects. New innovations and business strategy will become more of a focus.

Time Savings

The actual time saved by your workforce is hard to quantify, but the ability to access the right data or document at the right time is very important. The Cloud and its instant accessibility increases collaboration among teams and creates a culture of sharing information for a common goal.


Take advantage of the tax benefits with Cloud computing. Usually, hardware and software must be accounted for as a capital expense. It is deducted over several years. With Cloud computing, though, the expense can be deducted every year which can save your company more.

Power and Cooling Costs

Your cost per unit of computing power will decrease since you are no longer housing servers and other energy-hogging infrastructure.

With these cost savings, Cloud computing can have a significant and immediate impact on your business. It’s time to take advantage of the shared services that a Cloud provider offers. You can easily reduce your company’s standard IT operating costs, and drive business by increasing collaboration among employees.

Clearing Up Cloud Confusion