Cloud Migration and Your Bottom Line

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Cloud Migration and Your Bottom Line

As many as 70% of all U.S. organizations utilize cloud computing, with an additional 56% transitioning. We’ve already outlined the benefits of cloud computing, including savings.

But, how much can an organization save by making the switch? The short answer: It depends. The economic benefits of cloud computing vary based on the individual cloud business case. However, for most organizations, while there is a price tag associated with cloud migration, it often serves as a long term investment rather than one-time expense.

Cost Savings from Cloud Computing

Automating apps and systems lead to the biggest cost savings from cloud computing. These can be broken down in to direct and indirect costs.

Direct Cloud Computing Savings

Direct savings from cloud computing are easiest to calculate. They include:

  • On-premise hardware and software maintenance and fees
  • Operating expenses from on premise services, such as support and maintenance
  • Energy savings

The exact savings depend on the type of cloud computing solution. We break down two cloud computing options here.

Indirect Cloud Computing Cost Savings

Indirect cost savings from cloud computing can be difficult to calculate, as they are not always apparent until the system is up and running and may change over time. These savings include:

  • Limited unplanned downtime
  • Additional automated processes
  • New productivity apps and solutions

The Economics of Cloud Computing

While the savings from cloud computing are numerous, it does come with a price tag. To determine the full savings, consider additional costs like:

  • Monthly cloud server and maintenance fees
  • Data migration and set-up
  • Testing and app integration
  • Post cloud migration time

 The exact price of a cloud migration, both financially and operationally, vary from case to case. While there can be large price tags associated with cloud migration, if often turns out to be an investment for organization, rather than an expense.

Cloud Computing Analysis

Most businesses benefit from moving to the cloud, both economically and operationally.

If you’re thinking about migrating to the cloud, check out our cloud migration checklist.

If you’re already ready to see savings from cloud computing, we can help. Contact one of our specialists today to get the process started.

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