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Benefits of implementing a Cloud-First Strategy to reduce costs
Benefits of implementing a Cloud-First Strategy to reduce costs

December 28, 2022

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For most businesses, the cost-saving benefits of cloud computing will be the most compelling argument for going cloud. When developing your own software, systems, and infrastructure, organizations fail to calculate the total cost of ownership. This can lead to poor investment decisions, which may negatively affect your long-term profitability. 

By moving to cloud computing, businesses will be able to pay for the resources they need today while taking advantage of scale and reliability in the long run. 

 

Infrastructure that is fully utilized 

In cloud computing, companies are able to benefit from natural economies of scale by only buying what they need. This reduces costs by optimizing both software licenses and hardware or storage purchases both on-premises and within the data center. 

 

Reduced power costs 

A cloud computing strategy eliminates much of the unnecessary overhead associated with powering your own infrastructure, one of the highest expenses associated with running your own infrastructure. 

 

Reduced staff costs 

When a company builds everything in-house, its highest cost of business is workers. With cloud computing, staff can focus on innovation, optimization, and other more critical projects, rather than maintaining in-house infrastructure, which allows for a more streamlined workforce. 

 

Eliminate capital expenditures  

When businesses shift from a capital expenditure model of IT spending to an operational expense (OpEx) model, they can use that capital for other purposes. As a result of OpEx, you continue to pay for software, hardware, and other solutions, but the total cost will be amortized over the lifetime of the technology. As an added bonus, upgrades are included in the price, so you don't have to worry about obsolescence. 

 

Retain resilience without expensive redundancies 

It is well known that any disruption can have a massive impact on an organization. This is why disaster recovery plans include redundancy built into everything, but this doubles the cost! Instead of buying two of everything, you can gain resilience by using cloud services instead. 

 

Reduce the carbon footprint 

You can also reduce your organization's carbon footprint by implementing cloud services. In order to reduce your carbon footprint, you must save energy as well as optimize your actual footprint within your own or your cloud provider's data centers. As a result, you can reduce your carbon footprint without having to pay to offset it. 


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