Cloud computing, also known as “hosted applications” or “software as a service,” has been a tremendous benefit to IT departments, allowing flexibility and savings. Email applications like Microsoft Exchange, office software, CRM programs and more can be hosted by cloud providers, as can a company’s database and web applications. There are four major ways companies lower their IT costs through cloud computing.

IT Hardware Savings

Consider all the hardware needed to run applications and serve them to the end user. Servers, storage devices, networking equipment and other assorted odds and ends add up to a high price tag. As applications become more sophisticated to meet user demand, expensive higher-end hardware is becoming the norm. There is also the cost of supplying this equipment with adequate power and air conditioning. Over the typical hardware life cycle of five years, a single server can cost in the low five figures. Cloud computing removes this cost by eliminating the need for hardware ownership.

Computer Software Savings

Enterprise-level software, including desktop apps, server operating systems and server-side back-end programs all make up a considerable piece of an IT budget. When things like software assurance, per-seat licensing and other additional charges are considered, that cost goes even higher. This is another budgetary item that cloud computing ends. Purchasing software as a service also “right-sizes” companies by allowing them to pay for only what they use. This is much more efficient and more cost conscious than buying software in bulk for a modest volume discount, then waiting for people to use it.

Network Maintenance Savings

With cloud computing, the only responsibility the IT department has for the hosted application is to make sure the Internet connection is online. Contrast this with server maintenance and software troubleshooting and it’s easy to see the savings of both time and money that cloud computing brings. With fewer servers and applications to support, IT departments can reduce staff sizes to save money or IT staff could change their focus to become more proactive and focus on planning instead of putting out fires.

Equipment Downtime Savings

The final cost consideration for moving to hosted applications is the cost of downtime. Outages caused by malfunctioning hardware, software crashes, malware and even regular upgrades and maintenance create a major cost impact. Minutes and hours without key business applications add up and lost productivity eats into a company’s bottom line quickly. Cloud computing providers build redundancy into their service, ensuring far greater uptime for their clients, allowing them to eliminate the cost of outages.

With the easy access to quality, high-speed, and cheap bandwidth, Cloud Computing is affordable and convenient for businesses of all sizes. Contact Quote Cloud Computing today and learn more about how you can reduce your IT/Networking expenses while improving the productivity of your team.