04 Apr
2016

The Cost of Physical IT Infrastructure

Business owners who are hanging on to on-premise data centers rather than transferring data to the cloud are like baseball fans who spend hundreds of dollars on season tickets but only attend a couple of games. Many small businesses spend tens or hundreds of thousands of dollars on their on-site data centers, but they don’t come anywhere close to using all of their features or storage space. In comparison, the cloud enables businesses to only pay for what they use. For businesses looking to upgrade to the cloud, here are three other ways the cloud is more affordable than physical IT infrastructure:

 

Initial Infrastructure Cost Savings

While the charges associated with buying the physical equipment are the most significant, there are a lot of other costs that many business owners don’t think about ahead of time. For example, businesses must be prepared to pay more for the electricity needed to keep the equipment running and cool. Likewise, costs for backup generators to keep the data center operational if power is lost are also expensive.

These are all costs businesses don’t need to worry about when using cloud solutions because they are taken care of by the cloud service provider.

 

Maintenance Saving

Recurring maintenance is another expensive and time-consuming cost associated with keeping on-premise data centers operational. Because businesses can’t afford to let their on-site data centers go down, those who provide maintenance can (and do) charge hefty sums for equipment upgrades and maintenance.

 

Employee Distribution

A small business that moves its data to the cloud can save a significant amount of money on overhead costs because fewer on-site employees and technical specialists are needed to maintain the IT infrastructure. Using cloud services gives business owners more leeway to invest this saved money back into hiring employees to perform more important functions to grow their business.

 

 

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