Common Reasons to Transition Away From the Internal Data Center, Vol. 4: Cost Reduction

Craig Klatt

Category: Data Centers

The cost of running an internal data center can greatly exceed the cost of utilizing a cloud services provider in many ways. One of the single greatest benefits of cloud technology is cost reduction not only from a capital basis, but also from an operating expense perspective.

Making use of the cloud can reduce IT expenses in multiple ways:

  • Shared costs—without the need to purchase hardware or software, capital investment is reduced and internal computing resources are optimized. When using the cloud, you share the costs of system management, the underlying hardware infrastructure and the environment elements of the data center with other cloud users, ultimately saving your IT department money.
  • Doing more with less—the burden of managing and maintaining an in-house IT environment is time consuming. Making use of a reliable cloud provider allows your IT staff to focus on business impacting initiatives and new projects rather than worrying about IT maintenance. This allows you to reallocate your IT personnel and resources towards more productive tasks, which may help minimize bottom line expense while driving top-line revenue.
  • Organizational agility—increasing capacity is expensive. Furthermore, the procurement, installation and configuration of additional IT resources is not only time consuming, but also cumbersome. With the cloud, increasing capacity is simple, quick and seamless.
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