Blog & Company News

Apr 4, 2012

Cost Savings of Moving Your IT Infrastructure to the Cloud

There remains a great amount a buzz regarding the "Cloud" in the technology world. But how can it help your business? With the continued advancement and growth of virtualization technology, small-business owners now have affordable access to enterprise-level computing environments - all because of cloud computing. What follows is a comparison of IT environments and the cost effectiveness of moving to the Cloud. [caption id="attachment_393" align="aligncenter" width="300" caption="On-Premise IT"][/caption] On-premise IT requires a significant capital investment on even minimal infrastructure needs. [caption id="attachment_393" align="aligncenter" width="300" caption="Colocation"][/caption] With colocation (owned server hardware hosted in a third-party datacenter), capital expenditures are limited to server hardware and specific networking components. Datacenter cage or suite requires uptick in operational costs, but the saving over on-premise IT will typically exceed 20-25%. [caption id="attachment_393" align="aligncenter" width="300" caption="Server Hosting"][/caption] Hosted servers completely remove any need to invest capital on servers, data center equipment, or network hardware. Operational costs are limited to per-server hardware leasing, and internal resources to manage the servers. Savings versus on-premise IT typically exceeds 50%. [caption id="attachment_393" align="aligncenter" width="300" caption="Cloud Hosting"][/caption] Like traditional server hosting, cloud hosting removes any need to invest capital on IT infrastructure. The cloud-computing model allows organizations to scale servers to specific resources, thus eliminating scenarios in which users are paying for computing resources that they aren’t using. Saving versus on-premise IT typically exceeds 60%. The benefits of cloud hosting at The Small Business Authority do not end at cost savings.
  • High-Availability Infrastructure – Virtualized servers are not dependent on specific hardware. Common events, such as hard drive failures, no longer impact real-time performance, due to redundancies at all points.
  • Scalability and Flexibility – Control over server resources allow organizations to better react to business demands.
  • Expertise and Focus on Security – Years of experience working with, and meeting, regulatory compliance standards for small business customers and financial institutions differentiates The Small Business Authority from most other cloud providers.
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