The Long Term Cost Benefits of Cloud Migration

The upfront costs of cloud adoption are clear — though as with all things, the bigger picture needs to be considered.

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1. Hardware Costs (CapEx vs. OpEx)

On-premises datacentres and the Cloud have different types of expenses. The former requires a large initial investment (to buy the hardware) known as a Capital Expenses or CapEx. The latter requires a small initial investment but continued monthly costs known as Operating Expenses or OpEx.

2. Pay As You Go (Pay-per-use schemes)

There is another problem with on-premises hardware — you may not be 100% capacity all of the time, but that won’t change the retail price you’ll pay on the hardware.

3. Reduced Personnel Requirement

Apart from the capital investment of hardware for an on-premises IT center, businesses also need to have a team of IT specialists on the payroll that ensure everything works the way it’s supposed to and avoid downtime. And as you can imagine, the cloud costs less than a specialized IT team.

4. Improved Security

There has been a lot of misconception about the security of the cloud but the truth is that the security will actually improve for the average SMB, migrating to the cloud from on-premises IT. And while this is more of a “potential cost” rather than a present cost — it should not be avoided.

5. Agility and Scalability

A cloud ecosystem is built on the cloud-native philosophy — build agile applications that are reliable and easily scalable. However, the philosophy isn’t limited to apps, it extends to your company as a whole. As your company grows, your requirements will too. Fortunately, your cloud ecosystem is built to grow with you — automatically. Everything is built with growth in mind and to make expansion as effortless as possible.

Wrapping Up

If you’re still unsure about the feasibility of cloud migration, consider this:

Founder/CTO at D3V Technology Solutions, a Dallas-based cloud engineering firm & Google Cloud partner.