Does Cloud Computing, save you money?









Most I.T companies providing Cloud solutions and services cite Cost Savings as a reason for moving IT to the Cloud, I don’t think this should be the overriding driver for most companies when making a decision and seldom Cloud Computing is the cheaper option.

The main driver for companies to move to Cloud computing should be to institute new business processes and launch new technology dependent products and services. Cloud usage is expected to grow dramatically by 2014. For example US companies expect their cloud applications to be approximately 34 percent of their total in two years. When asked businesses they like the fact that they can move their IT budgets to an operational expense (OPEX) that can be spread out over the course of the deployment as oppossed to a larger, up-front capital expense. OPEX is far easier to get approved but, in terms of actual cost, there can be a point after which the cloud cost can exceed the operational expense. For example if you calculate the cost of paying a Cloud service provider for five years to store data and compare that with an on-premise solution, it may slightly cheaper to have an on-premise solution. Companies should do this analysis to determine which model works for them.

We know that Cloud computing is big now, and adoption has been ramped up significantly as companies are feeling comfortable with the model and also understand how to use it better and what the cost is.

DDKinfotech can help you with your cloud computing initiatives and do a Cloud computing analysis to see if it makes sense for your business.




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