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Is Cloud Computing Cost Effective for SMBs?

iStock_000027295368XSmallIn order to answer the question, “Is cloud computing cost effective for small business?” it is imperative to first consider all the moving parts:

Servers:

In order to operate your business effectively, your computer system is completely reliant upon a decent server. These do not come cheap. They also require maintenance, and chances are; you are not likely to pony up for the type/quality of equipment that would be made available if partnered with a top cloud host.

For example, if you wanted highly rated Costco server model, it would run you $1700.00 before you paid someone to set it up, manage it, etc. And, don’t think for a moment that the new purchase will be the last one you ever have to buy, particularly if you business begins to grow (which is likely your goal.) Even if it doesn’t, hardware tends to go bad – even quicker when they aren’t in the ideal climate controlled settings and infrastructure of a high-end datacenter.

Computers:

Because of the improved efficiency allowed by the cloud (coupled with additional security and monitoring) it turns out the cloud will actually save you in computer costs. Yes, the desktops or laptops you select for your facility. Now obviously, the price of the machines you choose is ultimately up to you. But, the life of your computers is likely to be extended significantly.

Staff:

In terms of the Cloud being cost effective, it may turn out that it’s what you won’t need with your cloud solution that will ultimately prove most significant with respect to your financials. Listen, IT is complicated – and talented IT professionals are expensive to keep in-house. So why do it (if you don’t have to)?

Hosting with a Cloud provider may not preclude you from ever needing an IT person on-premise, but chances are, you will have more than enough coverage with “one” as opposed to “a whole team” – and you may even find it would be enough to have a good IT consultant on speed-dial for emergencies. Saving on salaried employees by leveraging cloud services has been a winner, and continues to be, for millions who sign checks for small businesses.

Maintenance and Downtime:

While the level of services rendered will be impacted by the plan you’ve chosen (you would be seriously hard pressed to pay more than you would a full-time employee), your Cloud provider will likely do most/all of these in even the most streamlined of cloud hosting plans:

  • Monitor, maintain, upgrade your hosted programs
  • Minimize downtime by proactive measures
  • Ensure application availability
  • Regular data backups
  • Endless redundancy

At the very least, you will see improved productivity, higher revenue, and greater opportunity to focus on the task at hand. Add those value-ads to substantial payroll savings, and the picture of Cloud hosting – offering cost effective solutions for SMBs – should be crystal clear.

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