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Do Cloud Services Save Money?

Do Cloud Services Save Money?

It is no longer enough for a change in strategy to deliver performance benefits alone, the change must deliver cost efficiencies as well. Cloud services can help reduce the bottom line in the following ways:

No hardware CAPEX –  removes the need for your organisation to purchase equipment and hardware as well as expenditure on facilities and utilities required in the daily operation of the data centre.

Consumption based pricing –  removes the need for your organisation to pay for services that you are not using. The consumption based pricing model means that you only pay for the server and infrastructure capacity you actually use. More capacity can be provisioned for peak times and then de-provisioned when no longer needed.

Increased retained cash – by using cloud/on-demand services, organisations do not have to invest upfront to buy IT infrastructure via regular refresh cycles.

Reduced opportunity costs – opportunity costs are defined as the value foregone by pursuing a certain course of action. By choosing to use cloud/on-demand, a company can free up cash to invest in other parts of the business.

Expenses can be quickly reduced – during times of recession or business cut-backs cloud services offers a flexible cost structure, thereby limiting exposure.


Of course, every situation is different, for an independent assessment of your services, please contact us.