Save money with "Pay-as-you-go"
Cloud computing adopts a "pay-as-you-go" model, which allows business to pay only for the storage capacity that they use. This model provides very little up-front cost compare to setting up and maintaining an in-house infrastructure. Businesses can start out by renting a small amount of storage, and then increase the storage capacity as required. The idea behind the "pay-as-you-go" model is to allow businesses to adopt cloud computing quickly. Businesses will see an immediate return on investment (ROI) after migrating their infrastructure to the cloud.
Save money with "Outsourcing"
For maximum cost savings, most businesses will outsource most of their infrastructure components. By moving their infrastructure to the cloud and hosted by third-party cloud providers, businesses will experience a tremendous decrease in operation cost associated with IT staffing and hardware maintenance. Traditionally, businesses require a high number of IT professionals to take care of the day-to-day infrastructure maintenance such as installation, upgrades, and continuous enhancements. The number of IT staffs can greatly be reduced as more infrastructures are moved away from the traditional model and into the cloud.
Migrate to the cloud only when it makes sense
Another requirement that businesses should carefully evaluate is the mandatory federal and state regulatory and compliances. A financial institution will have stricter compliances to follow than a software development firm will. The reason for this is that financial institution contains more sensitive data than other type of businesses. As a result, financial institutions will have stricter guidelines when it come to moving their data to the cloud.
Less power equals more savings, and the go green factor
Whether the cloud is internally hosted or outsourced to third party cloud providers, businesses will save money on energy either way. Cloud computing is much more energy efficient because there are fewer servers and network equipments that are required to operate. In addition to saving energy costs, businesses are also contributing to a healthier planet by leaving a smaller energy footprint.