Reduce your operational costs through cloud computing

The cloud brings massive transformation in the business world. It delivers new business opportunities and is facilitating the Fourth Industrial Revolution (4IR). There are many benefits of cloud computing for businesses, no matter the size or scope of the company.

On average, businesses can reduce costs by 15% by migrating to the cloud. Cost optimisation is one of the main drivers of this mass migration. Small and medium sized enterprises (SMEs) can also benefit from the cloud, reducing their IT costs by around 36%.

Cloud computing saves costs

Compared to on-site computing, the cloud requires lower initial capital investment. These services reduce the amount of hardware needed; everything is virtualised, which means that all software is installed in a virtual system rather than on physical devices. Businesses do not need to purchase and run their own servers, which also minimises networking costs.

IT servers need to be housed somewhere. They also need to be regularly cleaned and require appropriate security. With public cloud environments, these costs fall on the cloud service provider. Computer networking devices can also consume a lot of energy, so having an in-house system results in higher electricity bills. By using a cloud solution, businesses can save on storage, security and energy costs.

A key reason why the cloud offers cheaper computing is that these systems are easier to maintain and upgrade. Should something happen to the cloud environment, the cloud service provider is responsible for getting systems back online and optimising performance. There is less demand on your company for labour and in-house maintenance.

In addition, if businesses develop their own in-house networks, upgrades need to be planned in advance. This requires accurate forecasting to ensure that the in-house servers can cater for future levels of demand. This is risky because it's difficult to predict fluctuations in demand month to month, never mind year to year.

Reduce operational costs through flexible pricing models

Cloud computing offers a reduction in costs because businesses only pay for what they need. While some businesses have a massive rate of data traffic travelling to their servers each month, other industries experience fluctuations and irregular demand, depending on the time of year.

E-commerce or event ticketing websites can experience sudden surges in demand. If the corporate network is unable to deal with this, it can result in system crashes or customers not being able to access the website. There are, of course, the associated reputational costs and lost sales when customers are unable to follow through with online purchases.

Improved operational efficiency with the cloud

One of the most obvious benefits of cloud computing is the possibility for remote collaboration. Employees can connect to the business network from any location and from any device. Given the rise of remote work and the demand for flexible working conditions, the cloud offers the perfect solution for businesses in the 21st Century.

Unified communications models, such as Microsoft Teams, ensure that employees work efficiently and do not lose time switching between apps and computer systems. These software-as-a-service (SaaS) applications are generally available through web browsers and are highly user-friendly. This allows enterprises to boost the productivity of their workforce. Employees can spend less time trying to find what they need and more time focusing on their core tasks.

Ready to migrate to the cloud?

If you are looking to migrate to the cloud, it's important to consider your migration strategy. It's essential to identify the operational benefits of migration and to minimise any disruption to daily workflows. Luckily with the cloud, migration can take place relatively quickly, resulting in minimal disruption to your employees or customers.

A massive benefit of the cloud is that there are different solutions to suit any budget. Start-ups and SMEs tend to opt for public clouds with plug and play functionality. Larger companies may require more bespoke solutions; for enterprises with existing digital architecture, a tailor-made system may be required.

In these instances, a hybrid approach may be most suitable - where the corporate network is composed of both on-site severs and private cloud environments. Whichever cloud solution is adopted, IT spend is reduced because the cloud is inherently cheaper to install, manage and upgrade.

Through business insights offered via data analytics, the cloud allows large enterprises to be more agile in response to changing consumer demands and expectations. SEACOM Business is a strategic IT partner for large enterprises and SMEs in South Africa. We offer various connectivity, cyber security and cloud services to companies. For more information or to get a quote for our cloud solutions, email us at marketing@seacom.com or leave us a message.

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