How Utilizing the Cloud Saves Money in the Long Run
May 24, 2012
Most businesses are aware of the advantages of cloud computing in terms of data recovery and storage, but not how the cloud saves money. Microsoft reported in a recent Information Week post that cloud computing can save significant money for small to midsize businesses (SMBs) throughout the year.
But how does a paid service save an SMB money in the long run? The Trustworthy Computing Division within Microsoft conducted a survey with 100 to 250 SMBs. Some utilized cloud computing, while others did not, and locations varied from Hong Kong to the United States. For just the SMBs located within the United States, 93 organizations utilized cloud computing, while 94 did not. Microsoft determined that the SMBs utilizing cloud computing are doing three to five times better than those that do not, in terms of better IT costs, value, and less time with security management. By spending less time on security management, an SMB is able to divert that employee or group resource toward another aspect of the business, thus, lowering data storage costs overall…
In addition to the fact that an SMB utilizing the cloud saves money, time is also saved, which is an expense in itself. Cloud-using SMBs have reported easier system integrations by over 45 percent, and less time spent on management by over 38 percent versus SMBs not utilizing cloud computing. Furthermore, customers utilizing a Microsoft cloud computing service have reported they feel over 30 percent safer and more secure with a cloud computing service than traditional data storage methods.
Cloud computing is essential for SMBs. Since most SMBs are ill-prepared for disasters, they are subject to data loss and significant downtime during power outages, storms, and more. A recent study by Symantec Corporation noted that cloud computing services increase an SMB’s likelihood of disaster recovery, using both public and private cloud services. A physical server can be destroyed, but with cloud computing, the server remains intact in even the most destructive disaster.
It is imperative that SMBs look at the likelihood of disaster as well as the overall costs savings associated with cloud computing before omitting the option from their budget altogether. While cloud computing costs money, the savings in terms of data loss, recovery, decreased man power and more seem to outweigh any money or annual storage fee.
To save more on cloud computing, SMBs should consider managing their consumptions tightly by turning off the meter. One of the ways this can be achieved is by completing a batch report on a cloud platform in a few hours once in a week or in a month.