Just a few generations ago, the phrase “IT spend” didn’t really exist for most businesses. Yet, many modern businesses live and die on their ability to keep up with current IT trends. Without sufficient IT infrastructure, modern businesses are at a severe competitive disadvantage.
Because of this simple fact, many businesses now heavily invest in IT infrastructure and management. However, just because IT is important to business success doesn’t mean that you should overspend on it. As with any aspect of a business, finding ways to reduce spending is an important part of maintaining efficiency and staying on-budget.
One way that many companies are keeping their IT spend down is by taking advantage of cloud computing solutions to handle their infrastructure needs.
How does using cloud computing help reduce IT spend? Here are a few ways:
1: Reducing the Need for Large, Upfront Capital Expenses
The servers and related equipment required to build out a complete IT infrastructure for a business aren’t cheap. Between power, cooling, networking gear, and the software licenses needed to run everything, the upfront capital expenses attached to a complete in-house IT infrastructure are quite large.
The bigger the company, the larger these expenditures will be.
One of the benefits of using a hosted cloud solution is that you can take advantage of the cloud service provider’s investments in top-notch servers and systems. So, instead of having to deal with a large upfront capital expenditure, you can get all of the benefits of a complete, functioning infrastructure for an easily-managed, consistent operating cost.
2: Flexible Management for IT Infrastructure on the Cloud
One of the issues that leads to increased IT spend when using an in-house IT infrastructure is that you need to have enough infrastructure to handle both your current and future loads. This includes short-term, seasonally-based spikes in ecommerce traffic.
With an on-premise infrastructure, trying to anticipate seasonal ecommerce spikes in your IT load can be difficult and expensive. If you install enough infrastructure to match your highest peak load, you’re wasting money in the off months. If you only get enough infrastructure to meet your normal needs, you’ll be in trouble when you get hit with the seasonal load.
Using a hosted cloud computing service rather than a traditional internal IT infrastructure helps your company be more flexible with your IT so you don’t waste money on capacity you may not need.
If your company needs to upgrade the amount of infrastructure it uses to meet seasonal demands, you can simply add additional resources from your cloud provider. If you overestimated your needs, you can reduce the infrastructure you use.
This flexibility helps make IT via cloud computing more affordable for companies of all sizes.
3: IT Department: Stay Focused on Core Business Initiatives
A side consequence of making a heavy investment in internal IT infrastructure for your company is that it typically requires you to hire IT staff that are dedicated to the task of keeping that infrastructure running.
From software updates and hardware maintenance, to security and network health, keeping your in-house infrastructure running is a full-time job for your IT staff.
With a cloud computing solution, however, you can leverage the cloud service provider’s existing IT staff to handle the maintenance required to keep your cloud solution running. This frees up your IT staff to do what they do best: perfecting the intellectual properties that will drive success for your business.
This is one of many ways a cloud computing solution can positively impact your IT department and business overall. Download our Ebook, 10 Key Advantages of the Cloud, for even more benefits to your business.