Economic Benefits of Cloud Computing

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Economic Benefits of Cloud Computing


Introduction Cloud computing can be used for almost all types of applications, not just business security. Although sometimes it seems difficult to grasp the idea of "operating in the cloud", it is clear that it can save users money, especially for small and medium enterprises. Here are five reasons why moving to the cloud can save you money and improve operations:


Scalable hardware means you pay for what you use Cloud computing brings natural economies of scale. The practicality of cloud computing means high utilization and smooth workload peaks and troughs that are inevitable. Your workload will share the server infrastructure with the computing needs of other organizations instead of using dedicated servers that you own, maintain, and pay for. This allows cloud computing providers to optimize the hardware requirements of their data centers, which means you do n’t have to pay for idle infrastructure, which reduces operating costs.


You’ll save money on energy costs

Cloud computing consumes less power. This is an inevitable result of scalable computing: better hardware utilization means that your business is more energy efficient. When you run your own data center, your server will not be fully utilized (unless your server is a very unusual organization). Idle servers waste energy, which means that regardless of demand, public cloud service providers can charge you less for energy usage than you spend in your own data center.


You’ll save money by streamlining your workforce When you move to the cloud, part of the money you pay for the service will be used for the provider ’s personnel costs. But this is usually much less than doing all the work yourself.


Zero upfront costs

When you run your own server, the upfront capital cost you are looking at, but in a cloud-based model, financing that capital investment is someone else ’s problem.


Resilience without redundancy

Cloud

computing

services

handle

redundancy requirements. A typical cloud has multiple locations in its data center, and they mirror your data and applications in at least two clouds. This is a cheaper method and another way to enjoy the economies of scale of the cloud.


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