Financial Benefits of Migrating to Cloud Technologies
Adopting the cloud technologies/solutions offers several advantages, which can be immediately reflected in the resources and money allocated to your company. Capacity, accessibility, mobility and cost reduction are just some of the advantages of using the cloud, regardless of the size of the organization.
Lack of knowledge could lead us to think that this is an option only for large corporations, but the truth is that the cloud also has interesting alternatives for small and medium-sized associations.
The working environment is constantly changing. Every day new technologies emerge that change the rules of the game in the business world and it is an obligation to adapt to these new conditions. What is a competitive advantage for your business today may become a requirement for survival tomorrow.
The move to cloud computing has been compared to the evolution that meant the leap from steam engines to the use of electrical energy.
Advantages of migrating to the cloud
Lower acquisition cost
Physical servers require a very high initial investment. Using the cloud does not require a large investment, since only the space, resources or applications that are used are rented. You pay for what you use.
Lower cost of operation
When working with the cloud you always have the latest version available from the provider. Qithout wasting time, new features and security updates are always within reach. There are also cuts in costs such as server maintenance (lighting, cooling, etc.)
Lower security costs
The cloud is no place for viruses. Security in this type of service provider is very high. Viruses are unable to spread. Without a file being infected, the problem does not spread, as it does in physical environments.
Lower opportunity cost
Increasingly, it will be necessary to adapt to new technologies and the digital transformation due to the nature of the markets. The increase in the volume of data generated by your business is exponential. This data will need, now or later, a higher processing capacity.
What type of cloud to choose?
There are three types of options:
- Public cloud
- Private cloud
- Hybrid cloud
The public cloud is one that is available to the general public and managed by a third party. The resources are flexible and practically unlimited. It has more servers and is less likely to be down. It requires no initial investment and is usually cheaper since the services are shared by many users.
The private cloud is a low-demand infrastructure, which is managed for a single customer. It depends solely on the organisation and the investment that has been made, so it is not usually useful for scaling large amounts of data. The costs are also different, since they are derived from the capacity and execution of each case.
The third option is the hybrid cloud, recommended for keeping part of your data in a private environment and another in a public one.
This article has been written by Chandra Mehta.
Chandra is a seasoned banker with 35+ years of experience in banking and financial services industry. He’s a retired banker and has served as Chief Manager and Assistant Vice President in State Bank of India/or its subsidiaries. He has authored many articles on this site (allonmoney.com).