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How Cloud Hosting Can Help in Cost Reduction?

The major aim of the perspiring businesses in today’s corporate world is to achieve maximum profitability in terms of cost-savings and maximum utilization of the available resources. They incorporate every technique in the book to reduce cost and increase the output. One such measure, nowadays, is switching to cloud. Cloud doesn’t just gives us the freedom to access anytime, anywhere but what it does is that it brings down the whole expenditure. This savings can be reinvested to other part of the business. Cloud hosting enables a business to save the money which otherwise would be spent on software, hardware, infrastructure and workforce. The expenditure and time on the setting up is also reduced in the cloud model.

Basic Idea behind cloud

Cloud is based on the model of pay-as-you-use. This means the idle time of servers doesn’t cost the company a single dime. Company can pay for every GHz of processing rate as per the hour. The storage problems are also minimized, as the firm can handle the storage spikes without much trouble. They pay for the extra storage and the work is done. No extra storage devices are required thus reducing the overall capital requirement. The maintenance cost also reduces drastically.

Helps in saving energy

Cloud hosting also helps in saving the energy cost. A company that adopts cloud also reduces its carbon footprint. It has been found that companies that use cloud has an annual reduction in oil usage of about 200 million barrels per year. This way along with the environment, cost of energy is also saved. With global warming increasing with every passing year, it is the responsibility of every company to reduce their carbon footprint and cloud helps a lot in that respect.

Effective use of workforce

Other than energy, cloud helps in relocating and refocusing the staff in house server maintenance to some work that may add value to the enterprise. Also, switching to cloud enables reduction in staff members hence, reduction in cost. Moreover, the time to bring the server online is also reduced in cloud computing. In this turbulent market time saving is also equally essential.

Caution is the key

However, for companies those are looking to switch their operations to cloud need to be sure about it. They should see whether the cloud model fits into the company profile well. The shift from in-house to the cloud is a major one and the use of cloud is a major change in the way IT industry operates. The selection of ideal vendor is also important and the company should choose the ones that suit their needs properly. All the key areas should be examined by the stakeholders. Areas such as privacy, security and architecture should be checked.


So it is hard to understand why companies are still spending large amount of money on setting up in-house servers and going through the hassle of operation and maintenance when they can easily save some serious money by moving to cloud. The vendors are still evolving ways to make cloud even cheaper and this practice should be encouraged by moving to cloud.

Author Bio:">Renuka Rana, Editor at MyRealData spends considerable part of her time in writing about technology including cloud hosting, Hosted PBX and QuickBooks hosting. When not writing, she loves to dig deeper into knowing the best and the latest technology in industry.

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