Posted by Admin on 7/17/13 at 3:41 PM in ,

The cloud computing industry is evolving like never before these days, also within the web hosting sector. According to experts who know the industry very well, this trend will continue during the coming years. The most important reason for the extreme growth of the cloud hosting sector is that this technology can really save you a lot of money.

Moving to the cloud will free up internal resources like time and money that were formerly invested into maintaining the old infrastructure you had in place for powering your website and intranet. Freeing those resources up enables you to reallocate them to activities with a higher importance and impact on your success, like research and development.

It should be no surprise for you that saving money on the technical infrastructure while gaining more available resources and a higher flexibility will significantly increase a company’s ROI on investments into their technical infrastructure. To calculate your personal cloud ROI, you will need to consider factors that are relevant to your company and the business field you are active in, as well as your application and specific computing needs.

At first you should take several broad considerations into account, including the cost of computing power per unit. The major improvement that comes a long with switching to the cloud is that you will have the resources of hundreds of servers at your fingertips. You do not need to pay for each and every single machine that you need to run your online presence and intranet platform. You are paying a basic fee plus a few cents for resource usage that is measured at a price per GB. At the same time you have the computing power of a higher amount of machines available then before, and all that at a much lower price. This alone will significantly increase your ROI on your investments into the technical infrastructure of your company.

This might become easier to understand for you if you see a calculation example. Just imagine if you have to pay, for example, $120 per month as a small business for a old fashioned hosting solution with 1TB traffic allowance per month and a storage of 20GB, just because you need the power of the server to run your website. But in fact you will never use up all your limits. Now compare it with a cloud hosting solution. You can get a powerful cloud hosting solution for a basic fee of only $40 per month and the resources for $0.14 / GB / month. Lets say the small business website is using 10GB of storage and 80GB of traffic every month. What you would pay? $40 + (10 * $0.14) + (80 * $0.14) = $52.60. This means that the small business is saving the incredible amount of $67.4 every single month.

Another major factor that improves the ROI of your infrastructure investment significantly is the easy scalability in both directions of cloud computing services. You are only paying for what you need, but at the same time you have a huge computing power available all the time. So if you need less resources you will pay less. If you suddenly need huge resources and a large amount of computing power, this is available instantly to you, and again you only pay for what you need.

There will be no time delay while optimizing the technical infrastructure to your new needs, as it is simply not necessary. Also there will be no addition expenses for new hardware and specialists who care about migrating the current infrastructure to a more powerful or less powerful one. It is all done automatically, instant and for free. This not only lowers your running costs, but also is freeing up time within your technical department that can be used for improvements at other parts of your online presence.

And exactly this free time can again increase your ROI on a investment into cloud computing technology. Just imagine if you are driving your company sales through your online presence. Now you have new free time that can be invested into your “sales-engine”. It can be improved to generate even more sales and, thus, money for your business that directly increase your ROI.

But now lets move away from all the hardware factors that have a direct impact on your ROI that you are gaining by using cloud hosting services. Another major benefit comes along with software that is used within the cloud. Using cloud technology for powering your software can significantly reduce licensing costs, as you will not need many licenses anymore. Saving money on software licenses that are needed for your business operations will again increase your ROI, as it reduces your running costs.

If you operated a large network of servers to power your network services before, you are probably used to having large expenses for keeping your technical infrastructure secure. Switching to the cloud will, you guess it, again reduce your costs in this field. You will save expenses for security staff and software, as the cloud is much easier to maintain and in most cases the security is completely managed by the cloud hosting provider. This enables you to reassign employees that were formerly dedicated to IT security or you can eliminate employees.

As you can see, cloud hosting services can have a significant impact on the efficiency of your technology investments by increasing the ROI and decreasing the time until your investments have paid off. You can reduce your costs by paying only for what you really needs, getting rid of running costs that are not necessary anymore and you can increase your earnings and turnover by dedicating the gained free time and financial assets to much more important parts of your business model.

Every company should carefully analyze how they can improve their current infrastructure by moving to cloud hosting services and how big the ROI increase is in result of those changes. It should be worth it in more than 90% of all cases.


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