As companies look for innovative ways to slash IT expense, improve resiliency and remain competitive, Cloud technologies are becoming more appealing especially to the small and midsize business owner looking to better manage their cash flow and be a part of the next generation of cloud computing. In the past, it was common for companies to purchase, deploy and maintain their software applications on-premise. Now with Cloud technologies leading the forefront of change, organizations are interested in exploring new options and want to understand the economic advantages of on-premise vs. cloud and what moving to the cloud really means in terms of TCO (total-cost-of-ownership).
One of the most compelling reasons for moving to the cloud is a company’s ability to convert a capital expense to operational expense. This combined with quicker deployment times, no longer having to maintain software, hardware and infrastructure, or having the resources to internally support make Cloud technologies attractive.
To really understand Cloud TCO, we break down the value prop so a company like yours can look beyond the obvious to the drivers that will be the most beneficial to the health of your organization.
Moving CAPEX Expense to OPERATING Expense
Not only is this a smart move in terms of cash flow, as an organization, you now have the power to alter your financial model in a positive way that:
- requires little or no up-front software or hardware investment
- the need to support, maintain, or train additional IT staff
- locks-in the right pricing structure, in a pay-as-you-go model
And because Cloud providers carefully articulate what services are provided in their Service agreements, your organization will benefit as it motivates them to keep you happy, deliver exceptional customer service and support all day, every day – a WIN for everyone.
The Ability to Deploy Quick
It’s been highly publicized that by moving to the cloud an organization can experience faster deployments. When you understand how this is possible, you start to appreciate the TCO value of the cloud and the advantages delivered with cloud technologies.
First, cloud providers eliminate the need for your organization to purchase the appropriate third-party software needed to integrate, maintain and service a cloud infrastructure. Second, cloud providers specialize in delivering multi-tenant architecture designed optimally to spread costs and best practices across their client base, allowing you to realize the benefit of improved efficiency at a cost savings. Third, cloud service providers perform all the required maintenance tasks on a large scale, making it easier and more efficient than an internal IT department.
Reallocate IT Budget to Improve Bottom Line Results
With cloud technologies, your IT budgets will allocate different then a budget designed for onpremise applications. Simply put, you no longer have to worry about ongoing maintenance, upgrades, hardware or trained staff, or how to budget for each of these different areas. Instead, you’ll have a ONE predictable journal entry on the balance sheet every month that doesn’t change.
Embracing cloud means that you have the opportunity improve your bottom line by spending less on software, hardware and professional or consulting services which in turn will allow you to realign your budget to more strategic areas of the company – those that will drive profit and bottom line results.
Managing for Growth
Known for flexible scalability, Cloud technologies allow an organization to do more than scale up or back when needed. They allow you to better utilize smart technology, integrate the cloud footprint across your organization and modify strategies for cost control in order to proactively plan for growth.
Cloud technologies are the first step to having the power to alter your financial model in a positive way. A model that requires no up-front investment, locks in the right pricing structure, and puts you in the driver’s seat to control your own prosperity.
Before you move from on-premise to the cloud, consider all the facts and how you want TCO to align with your overall business strategy. Moving to the cloud can change the way you run your business by allowing you to plan and improve your technology infrastructure, refine processes and invest in the right resources to GROW.
For more information on moving from on-premise to the cloud, visit www.smbsuite.com.