4 financial benefits of Cloud Infrastructure

Outsourced IT Services Blog

sm 4 financial benefits of cloud infrastructure
Cloud infrastructure known as Infrastructure as a Service (IaaS) offers businesses remote access to IT resources such as servers, CPUs, storage devices and other hardware and networking equipment. IaaS can be used to run a single application or your entire organisations IT infrastructure, this is alternative to purchasing your own infrastructure.

Here are four financial benefits of Cloud Infrastructure.

1. No Up-Front capital Expense

When purchasing your own hardware infrastructure, you have to estimate how much capacity you will need over the next 3 - 7 years, and most of the time you will have to pay for it all at once.This ties up a large sum of money that you could be spending on other things. Not only is it difficult to accurately estimate your usage over such a long period of time, it is not an effective use of your money.

Since global public cloud providers invest and operate at such high scale, they pay a lot less per unit than anybody else. They run their business on a high volume, low margin basis which allows them to pass signifcant savings along to you.

2. Reduced Operating Costs

Quite often, the costs of maintaining your own infrastructure are overlooked or underestimated. These costs include:

  1. Power
  2. Cooling
  3. Data centre rental (if offsite)
  4. Hardware maintenance contracts
  5. Procurement costs and delays

These operating costs are included in the rental of your cloud infrastructure.

3. Pay Only for What You Use

Infrastructure from cloud providers can be made available in minutes and you only pay for what you use.

This model allows your investment on IT to align much closer to the financial performance of your business over time.

Academics use a term called option value for which a premium is paid for flexibility. In the unlikely event that a cloud alternative may be more expensive than purchasing infrastructure for the same duration, this would be understandable, as there is no implied commitment beyond the duration.

To continue reading - 4 Financial benefits of Cloud Infrastructure

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Lanrex - Cloud Computing | Outsourced ITLanrex
Category: Managed IT ServicesCompany about: We work with a wide variety of small to medium sized businesses across Australia, New Zealand, Singapore, Hong Kong and Papua New Guinea. Each having their own company and industry specific applications and systems. We are able to support a variety of clients because we adhere to a high level of network engineering standards and understand technology.By dealing with Lanrex you can avoid the cost and complication of multiple suppliers and gain the convenience, accountability and value of a single ...
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