The Financial Benefits of Cloud Migration


The cloud represents opportunities for businesses to streamline and improve efficiency. Software as a service is simple to set up, easy to scale and offers the kind of flexible pricing that makes it straightforward to manage. However, it is perhaps the financial benefits of migrating to the cloud that are the most appealing.

Lower hardware costs

When infrastructure is shared this allows for significant economies of scale and low to non-existent hardware costs. Cloud providers handling the demands of multiple organisations can optimise infrastructure and elements of data centres in order to ensure that costs are kept low. The alternative is on-site infrastructure, which brings with it large up front set-up expenses, as well as the cost of ongoing upgrades and maintenance.

Less wastage

On-site provision is rarely used to the full extent it could be but still continues to plough through resources, such as energy and maintenance staff. Migration to the cloud removes this kind of wastage so that your business will pay a provider less in energy costs than would be the case with an on-site infrastructure.

Reducing capital needs

The cost of on-premise IT gets more expensive by the year. Whether this is being funded by capital in the business or external financing, it takes essential resources out of the business that could be invested into growth. After cloud migration, the cost of financing on-site servers falls to the cloud provider and no longer figures in business budgets. This not only reduces overall capital spend but also makes it much easier to forecast financially, as the IT cost is predictable and stable.

Streamlining the staffing budget

There is no doubt that an internal IT team is an essential for some, large businesses with the resources to cover this considerable cost. However, for most organisations this simply is not the case. Cloud services provide access to expertise that is often far in excess of what many companies could afford in-house and on more flexible terms with better response rates too. A good IT team is expensive, from the monthly salaries, to benefits and even the overheads of their offices. The economies of scale in cloud computing provide access to an exceptional team at a fraction of the price.

The cost of failure

Contingencies, such as purchasing additional hardware to guard against system failure, can be incredibly costly. For those organisations with on-premise servers this is a necessary expense. Should a system breach or error occur in-house then costs can end up being significant, both in terms of the resources required to restore the systems and the consequences of downtime, which tends to last far longer the smaller the team in charge. Cloud services providers have much more advanced early warning in place, more experienced teams available to handle a crisis and significant resources to minimise downtime and its associated costs.

If you would like to find out more about how to import the financial benefits of cloud computing for your business our team is here to help. Contact us here.

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