We countdown the reasons why companys could benefit financially from relocating their operations to cloud-based systems.
1. Lower Power costs
Computing costs are often very high due to the staffing budget. IT professionals usually demand a high salary and their employment costs tend to outweigh the costs associated with hardware and software.
When you move to a cloud-based solution, IT staffing costs are reduced significantly. A recent survey of 1,300 companies in the U.K. and U.S., supplemented by qualitative telephone interviews by the Manchester Business School with companies that used the cloud during December 2012 and January 2013 found that 88 percent of cloud users pointed to cost savings and 56 percent of respondents agreed that cloud services have helped them boost profits. Additionally, 60 percent of respondents said cloud computing has reduced the need for their IT team to maintain infrastructure, giving them more time to focus on strategy and innovation.
2. Lower Energy costs
Cloud computing uses less electricity. By only using the servers they need, businesses become more efficient with the power they use and reduce costs. Idle servers waste energy, so businesses working in the cloud can enjoy reduced energy costs while also being friendlier to the environment. According to the business case for using the cloud and remote working technology is already strong – and there is also a knock-on effect for the environment. If just half the workers in the US who were able to work from home did so, it would result in:
- An annual greenhouse gas emissions reduction of 54 million tons.
- 119 billion fewer vehicle miles travelled each year.
- A decline in annual oil consumption of 640 million barrels.
3. Lower maintenance costs
Since you aren’t responsible for infrastructure you avoid any maintenance costs associated with it. Being in the cloud means someone else is looking after your infrastructure. Not only will this save you money, it can remove the headache of dealing with servers and complex hardware maintenance. Cloud service companies are in the business of business continuity. Server maintenance and security updates are executed seamlessly and without disrupting business productivity.
4. No more disaster recovery expenses
Companies relying on cloud service providers for their disaster recovery issues are able to significantly speed up their disaster recovery efforts. A recent Aberdeen Group Study found that businesses running in the cloud were able to resolve disaster recovery issues in 2.1 hours, compared to 8 hours for those who didn’t rely on cloud service providers for their disaster recovery issues. The same study also found that medium-sized businesses were able to recover almost twice as fast as large enterprises.
5. Zero Capital Costs
When you run your own servers, you're looking at up-front capital costs. But in the world of cloud-computing, financing that capital investment is someone else's problem. This is one of the major benefits that is causing the drive towards cloud computing. In fact, spending on cloud services is estimated to increase from nearly 70 billion in 2015 to an estimated 141 billion or more in 2019.
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