Why Your Business Should Migrate to the Cloud
I’m not lying when I say that moving to the cloud is going to be the best move your business makes in 2020. Don’t believe me? Cloud computing can save your company thousands upon thousands of dollars. That’s no small chunk of change!
If you’re unfamiliar with the idea of “the Cloud,” know it’s a gigantic market growing at a massive rate. The industry is expected to grow from $146 billion in 2017 to $411 billion by 2022. This is a massive increase that is unmatched by nearly any other industry vertical.
Why the increase? Well, its no surprise that its is because people found out there’s some massive money to be made.
According to Rackspace, who surveyed 1,300 companies, 88% of cloud users experience cost savings. A whopping 56% of those users even see increased profits.
If you still haven’t made a move towards cloud computing, 2020 is going to be your year to make the jump – and here’s why.
Cloud Computing Lowers People Costs
Your company’s staffing budget is probably the biggest single line item in your business’ finances. It wouldn’t be unusual for a company’s payroll to make up more than half of the company’s total budget. And lots of this is because IT is expensive, but necessary. Let’s break down the costs:
- According to Spiceworks, the average IT budget is $253,389
- Companies often spend 75% of their total IT budget maintaining and running existing systems
- Owning and managing software applications often cost four times more than the initial purchase
- Cloud Computing helps squash these costs.
When you move to the cloud, the money you spend helps the provider pay to staff their IT people, but they work with a ton of companies, so it’s a smaller amount than if you had to call in your own IT person just to fix your problem or update your infrastructure. You also don’t have to constantly replace software when it becomes obsolete, ineffective, or just stops working. Since cloud computing Internet-based, it’s constantly changing, upgrading, and fixing bugs without your IT guy having to lift a finger.
There’s No Capital
Financing a change in infrastructure (whether you’re upgrading or starting from scratch) is often a huge hitch for small businesses. What if I told you it doesn’t have to be? This is one of the main reasons why cloud computing is needed in a small business. Running your own servers is a big investment. Right off the bat you need:
- Server hardware (minimum $400-$1000 for a low-quality processor that barely gets the job done)
- Server operating system (about $1000 per five users)
- Applications so your server does what you need it to do (anywhere from $700 – $4,000 per app)
Hardware and software only make up 15 to 25% of the overall budget for running your own server. There are even larger costs in installing, maintaining, upgrading and supporting your server – plus, anything that goes wrong can be disastrous to your business.
Your Business Will Be More Secure
Imagine losing all of your business’ important date because your backup strategy failed. You may not even have time to implement a backup strategy or keep it up to date. If one thing goes wrong, everything your business needs could be totally wiped. That is a business owner’s worst nightmare (You know, besides being audited).
Don’t let this happen to your business. You’ve invested too much. Cloud computing insures that you are able to retrieve the latest versions of your data if there’s an on-site system failure (which, let’s be honest, always happens at the worst time). You can even choose to automatically backup your data as frequently as you like, and it’s not all resting on one online location. Many providers save your data in multiple centers to increase your business’ security in the event of a total system failure.
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Hardware gets old. We all know that aging sound of a crackly, old hard drive loading at a snail’s pace. Don’t let that happen to your business because you don’t have the time or money to upgrade your hardware and software.
It’s a fact that cloud-based services are usually more reliable than anything you can have in-office because providers have dedicated, experienced IT staff whose sole job is to make sure it works perfectly and resolve problems quickly as soon as they occur. No more waiting around with a system that 45 minutes to access because you let one problem pile on another. Saving time saves you money because you can focus on something more productive.
You Can Get Started Right Now
Want to know what’s not a quick change? Upgrading the hardware on your existing system or purchasing a system when you’re in the early stages of launching your business.
- On- premise software implementation can take over a year
- Your budget can shift, things can come up, and priorities change
- Your IT projects can be forced into the backburner
Anyone who has money on their mind knows there’s no time for that. You can get started with cloud computing in as little as 30 days. It’s also easy to scale based on chances in your business – scale back when business is slow and increase your usage allowance when business is booming. You never have to worry about being stuck with an expensive, larger system that you can’t afford and don’t really need.
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Now, more than ever, cloud computing has allowed for small businesses to compete with the big guys. If trends continue to grow, the market will only become more competitive, a better value (and let’s be honest, it’s already a great value at a small investment) and help you save money by automating your business and streamlining processes.
Still not sold on all of the financial benefits the cloud has to offer? Here are 10 more reasons you moving you business to the cloud makes sense.