3 Long-term Cost Benefits of Cloud

By Lauren Fritsky

Many Australian enterprise IT departments are unaware of the potential long-term cost savings of cloud, according to Gartner Australia. While you might incur some upfront costs, cloud services can boost savings for your organisation in three primary ways.

1. Less investment in infrastructure

While initial savings tend to be less with enterprise clouds, the eventual cost benefits over a three-year period amount to about 25 per cent. Cost savings come primarily from a reduced need for capital investment and low setup costs, according to O’Reilly Media. This allows you to redirect funds to other projects.

2. Reduced energy costs

Using the cloud for business applications could decrease the carbon footprint at companies by 30 to 90 per cent, according to one Microsoft study. Part of these savings comes from reduced hardware use, less heating and cooling in data centres and pooling of resources in one place. Choosing a cloud services provider with a robust cloud will help maximise these costs thanks to supply-side economies of scale, says another Microsoft report.

3. Fewer in-house IT needs

Cloud can shave 30 per cent off Australia enterprise IT costs in the first three years, according to Forbes. The reason: you no longer need in-house staff to troubleshoot individual computers and systems.  This can be especially true if you go with a provider like Datacom that not only handles your cloud but also supplies other managed services. At the same time, you can begin shifting IT staff into more consultative roles so they can assist with overall IT strategy and technology integration.

How has your organisation saved money with the cloud?

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