Dedicated Server Hosting > Blog > How Cloud Computing Reduces Your Overall Overhead Cost?

How Cloud Computing Reduces Your Overall Overhead Cost?

There has been a lot of buzz about ‘CLOUD COMPUTING‘ these days; one of the most emerging concept in the field of technology. However, most of the time there isn't that elaborative explanation been given about:

How cloud-based technology can actually affect the overall performance level of any business?

IT managed services have the capability to considerably trim down the overall overhead costs by giving you the flexibility to gauge your infrastructure quickly and economically in accordance to your changing business needs and requirements.

Well, would say that the computing requirements of a company can vary considerably throughout the year. Everything goes on sale during the holiday season or end of season and people start looking out for more options to shop online. Due to which most of the online shopping websites certainly requires more capacity as huge volume of traffic is expected to turn on to their online stores. These servers actually remain idle during the non-sale period and require the desired maintenance, upgrade, and space all time.

In such incidences, without cloud we would say that these businesses may have to incur upfront capital expenditure so as to handle perhaps five times their regular traffic to manage these peaks, along with the upkeep cost, workforce, upgrade, and storage that it might require. Apart from this, they also have to handle the increased workload in HR and accounting departments that will be generated by their IT department.

Conversely, with cloud hosting you can buy whatever capacity you require at that point of time, and accordingly scale up or down, as well as manage your overall cost.

You must be thinking what exactly cloud hosting does to computing?

Well, to make it simpler will say that let's suppose you are thinking of building your own power plant. For this, you will undeniably be hiring workers to maintain and manage the plant. Not to mention, you will certainly be maintaining the capacity that you might need at time of unexpected rise in demand (for an indefinite time period), which we would say will again be an expense that exceeds the cost that you will be paying to a power company to handle all of that for you. Perhaps, the complete cost of ownership of the service is relatively less.

Another key benefit that a CLOUD SERVICE PROVIDER offers is– they make the IT costs, which you may have to incur quite PREDICTABLE. No unanticipated costs have to be borne by you in case of server breakdown. Moreover, there isn't any risk of facing any downtime; as most of the cloud companies are capable enough to have N+1 redundancy provisions that enact as a failsafe solution for you and will stringently secure your data from being lost.

It also slashes down the risk by diminishing the capital expenditure which can be invested in new projects. Smaller businesses can do the required test and trial with the new infrastructure, software, or platform, without even purchasing the complete apple farm so as to taste one slice of it, and later on integrate those systems effusively without any need to negotiate for huge investment capital.

Moreover, you can effectively share your expenses with other clients, which generates bountiful revenue for cloud service providers to keep up your services at the cutting edge level. This doesn't mean that it is mandatory for you to have a dedicated or private system for your business which may not only be expensive for you, but also not able to meet the changing needs of your business.

This diminution in cost and increase in quality of service is driving a revolution in information and technology sector, wherein IT divisions are deserting their traditional monitoring and coding roles so as to become cohesive as consultants for the application of technology in accomplishing ongoing business goals and objectives.

In the end, would like to conclude by saying that embrace the budding technology i.e. cloud and curtail all the unnecessary capital expenses.

About Neeti Patial (17 Posts)

A seeker of enlightenment; who loves to share insight so that it gets more refined and proliferates with time

Leave a Reply

Your email address will not be published. Required fields are marked *