Cloud storage provides efficiency, new product features, and the emergence of new service models for business. Nevertheless, the most significant benefit that cloud storage offers businesses is cost savings. Many factors come together to determine the amount of cost that you can save. These factors include the size of your business, the requirements that you have and the current process that you need to be changed. Below are the factors that you should consider when looking at the variations in cost.
1. Cost of Setting up
The initial cost of infrastructure outlay is the first cost difference that you should consider. For any business, buying new hardware, peripheral accessories, software licenses, and any additional tools can require high capital expense. The cost will be higher if your business is entirely new and it requires more things for operation. Things such as electricity, hardware, physical room, and room cooling are unavoidable costs needed for implementing your on premise storage. However, with the cloud, all these costs become unnecessary. Adopting cloud computing requires an internet connection that has a high speed with the provision of an efficient backup option and your business is all set up. Since the cloud server provider incurs the cost of hardware, you will only incur the cost of the data you require storing.
2. Increased Storage and Capacity
Cloud storage can expand and decline depending on the exact data amount that is needed which makes it a practical solution for your business. A small organization requires fewer terabytes or petabytes when compared to a larger organization. Therefore, whenever your business needs to increase its storage capacity, cloud storage happens to be the fastest and the easiest option. Additionally, you do not have to worry about any minimum payments or contracts or for you to wait until your billing cycle is over. On-premise servers, on the other hand, require that your infrastructure is upgraded, it needs the equipment to be ordered, and it demands the cost for shipping and installation of materials before storage can be utilized. The process can take a lot time and cost to carry out.
3. Maintenance and Indirect Costs
The cost that you can pay on a monthly basis for maintaining your onsite storage can be significant. The maintenance fee that is required for could services, on the other hand, usually remain as fixed monthly expense depending on the amount of storage space that you use. The main costs of onsite servers include energy and the IT management team expenses. Additional costs can result from the risk of downtime during operations, security breaches and loss of data which are very expensive to resolve. However, using the cloud means that the maintenance and the upgrading costs are no longer your responsibility but that of the service provider. Since these costs are included in the cloud packages that you select, you incur little to no maintenance cost.
It is true that cloud storage is cost-efficient regarding maintenance costs, start-up costs, and support costs. Therefore, migrating to cloud storage can save your company a significant amount of money in the long term.