The Benefits of Cloud Computing: Beyond Cost Reduction

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If you’re a small or mid-sized business owner or executive you know what sort of impact information technology has on your bottom line. It’s not just the ever-changing and developed-for-obsolescence hardware, but also the maintenance and IT support required. Enter cloud computing. With the benefits of a cloud computing solution, many of our clients have seen IT cost reductions of 20% or more.

With a cloud based solution, instead of investing in high-powered workstations loaded with software, networking infrastructure and servers, all of that is based in an offsite, secure environment – with uptime usually guaranteed by the cloud provider. (Cloud vendors that don’t provide a guarantee or incorporate such performance metrics into their contacts may not be worth your while.)  All you need is a light duty desktop or laptop computer and an internet connection. Everything else is in the cloud. And since most of the hardware has been taken off your budget, so have most of the IT management, support and maintenance costs.

Upfront capital expenditure reduction is just one of the benefits of a cloud computing solution. A small or medium sized business just doesn’t have the budget to incorporate all the infrastructure, security and redundancy that a cloud computing provider offers. Your data will be more secure, your backups more reliable and your uptime more consistent with a cloud based operation without the additional expense to your budget.

Another benefit to cloud based computing that many don’t realize is the flexibility it will bring to your operation. Because the software is running in the host environment, your employees can securely and quickly access your company’s data and software from anywhere with an Internet connection. This will allow you to attract better employees, offer virtual and work-from-home solutions which can provide tax benefits and potentially cut your office space requirements.

Eliminate most or all of your IT staff and servers as well as most of your IT infrastructure by moving to the cloud. This creates savings that go straight to the bottom line that anyone considering a cloud computing solution will easily grasp. But there are other tangential savings you may not realize. You will save on electricity for powering the equipment and cooling a computer room you no longer need. If you allow some of your workforce to go virtual, you can eliminate office space saving on rent and furnishings.

Even if you keep everyone in-house, the need for a secure server room goes away. For another thing, your disaster recovery plant just got cheaper and easier. A cloud based solution includes redundancies and backups that ensure no down time for your business. And finally, since this is a service, it is 100% tax deductible. If you purchase your own servers and equipment, it has to be capitalized over years to realize any tax benefit. Since you will be billed monthly for cloud services, that is a deduction you can take in the current year.

Take a look at your IT budget and think about the numbers. If saving a large portion of your information technology budget looks like something that is appealing to your business, take a look at a cloud based solution.

Yehuda Cagen :Yehuda Cagen is the Director of Client Services for Xvand Technology Corporation, provider of IsUtility®, a pioneer of utility and cloud computing computer services for Houston’s small and midsized businesses, backed by nearly two decades of research and proven client implementation.