Since the use of cloud computing is still relatively new today, many enterprises are afraid to adopt such solutions. For companies with already installed IT departments and equipment, the transition to cloud configuration seems quite inconvenient.
Cloud computing has been introduced to businesses to lower the total cost of ownership and increase ROI while meeting IT service needs.
While there is still no definitive formula for calculating the exact internal labor savings generated by using IaaS, identifying the underlying factors in this area can help organizations reduce their infrastructure’s total cost of ownership (TCO).
Benefits Of IaaS For Reducing TCO
There are more reasons for moving to the cloud than you might imagine: good flexibility, lower costs, and better control are just a few benefits. Understanding precisely what advantages apply to your business will help you make the right decision.
1. Cost savings
The most known advantage of using the IaaS model is that it can provide you with lower infrastructure costs.
This way, you no longer need to service your hardware or network equipment since it’s usually a pay-as-you-go model; you only pay for what you use.
In other words, instead of paying for maximum capacity, you will only pay for it when you really need it. This may only be a couple of months a year, depending on when you have peaks in demand.
2. Flexibility and efficiency
By using cloud computing solutions, you have the opportunity to achieve ROI by dramatically reducing your initial investment. Operating expenses are a large part of the IT budget, with the flexibility to reduce costs during periods when the operating load is lower.
What’s more, the flexibility to scale up and down quickly in response to demand gives you a much more agile business.
3. Maintenance
Another huge advantage of cloud computing technology is the reduced cost of onsite server maintenance. Thus, when an organization uses the cloud, it can lower its total cost of ownership by reducing the cost of hiring onsite technicians and the total cost of maintaining servers and the space they are in.
4. Operational complexity
It’s an additional way to reduce total cost of ownership using cloud. Infrastructure is not always just equipment. For everything to work smoothly, you also need a team of skilled workers for your day-to-day work. IaaS easily solves this issue by outsourcing it. So instead of spending a lot of time recruiting new talent and keeping them updated, you can rely on the expertise of your cloud provider. They take responsibility for fixing vulnerabilities, securing and configuring the network for you, allowing you to focus on your business.
5. Reduced development time
One of the main reasons for moving to the IaaS of the cloud is that you can quickly build and deploy a flexible and scalable infrastructure.
Using the cloud, you will not need to spend a lot of time creating a new product. The cloud allows you to allocate X number of virtual machines and the amount of storage, and you can do that in a couple of days or hours. You no longer have to spend your resources since you can upgrade to IaaS.
6. Security
Many IaaS cloud providers invest heavily in security operations to ensure the reliability of the data they manage. This also includes additional protections such as end-to-end encryption and dormant encryption for private and sensitive data.
7. Speed
Leveraging IaaS can help you dramatically increase business agility, and reduce time to market. Businesses using the cloud to reduce TCO can quickly target their freed-up internal workforce, save money, and avoid the expense of finding new customers and market opportunities.
Reduce TCO with cloud right now
Of course, most organizations today have already seen the tremendous benefits of the cloud. Switching to IaaS is one of the best ways to get the results you want. By creating an efficient and flexible environment, you can quickly adapt to changing clients’ needs while reducing TCO.
By leveraging the cloud and implementing it into your strategy, you will also increase agility, speed, and innovative capabilities so you can quickly respond to any changes in the business environment.
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