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Diving Deeper into Cloud Cost Savings | Wowrack Blog

 

illustration of person showing benefits of cloud cost savings

September 12, 2018 - Kenneth Odem

Diving Deeper into Cloud Cost Savings

 

One of the first questions often asked when considering the transition to cloud-based computing is: where are the real, discernable cloud cost savings? While cloud security concerns are also one of the most frequently asked questions, ensuring that the transition to a cloud infrastructure will result in a positive effect on their financial bottom line is undoubtedly up there on the list as well, and for good reason!

Economics of Scale

One of the highlights of the cloud model is that it operates on scale, meaning that the utilization of resources depends solely on the workload needs. You will never need to purchase more than you will actually use, so you can rest assured that whatever cloud computing costs you incur are applicable to a productive reason.

Additionally, cloud hosting can extremely customizable when taking a hybrid cloud approach or even a private cloud approach, and can be a great fit for practically all business models. Depending on your privacy needs and concerns, you can choose from a variety of options, such as:

Reduced Overhead

In an ideal business world, you want to reduce overhead while maintaining or even increasing efficiency within your infrastructure. In fact, this is an objective that is actually attainable through the implementation of cloud computing or even colocation, whereby moving will likely result in reduced man-hours and expenses of:

  • Maintaining UPS & Generators
  • Maintaining server infrastructure
  • Maintaining HVAC/CRAH/CRAC units
  • Ensuring network availability 24/7
  • Managing security of server infrastructure space

Additionally, on top of the reduced overhead, you also gain a much more sophisticated enterprise setup over your typical office setting, especially considering a DC has multiple network lines from diverse paths vs the single-line implementation for your run-of-the-mill office setup.

Re-Focus Resources on More Revenue-Generating IT Functions

After migrating your current on-premises infrastructure to cloud hosting through a managed hosting provider, you can then reallocate excess funds towards higher-ROI IT tasks functions. By moving the day-to-day management to your provider, you can free up more time and budget to re-focus on other objectives. Some companies such as Wowrack even offer 24/7/365 service for their clients, which allows you to get the recommended level of monitoring and network security without draining the budget or your employees’ time.

This additional support level can help catch threats before they evolve into full-fledged attacks, so you won’t have to use costly manpower as well as hard dollars to not only fix the issue but ensure it doesn’t happen again. While a lot of the tips here focus on cost savings on the immediate front, this point does speak to the future savings that can be attributed to preventative measures for combating DDoS attacks and other threats to your network security.

Consider Colocation Services

For some organizations, moving to a cloud infrastructure is a hard sell for management.  However even still, keeping your equipment on premises has many risks, and lots of overhead, as mentioned above.  Obtaining colocation services can be great cost savings for your business and with some colocation providers, such as ourselves, they can oftentimes provide managed services despite your equipment being company-owned.  Depending on the scope of needed, as well as your privacy concerns, you may be able to choose between sharing a cabinet space (only when doing single-server colocation)  or renting one for your business alone. For example, Wowrack offers the following server sizes to its colocation partners:

  • Single server shared colocation
  • Full private locking cabinet
  • Partitioned private locking cabinets
    • 1/2 cabinet
    • 1/4 cabinet
    • 1/6 cabinet
  • Customized private caged spaces

Take a look at our Seattle colocation facility to see exactly what features you should expect when reviewing colocation spaces – in addition to providing top-notch servers, other amenities, such as free remote hands, offered could potentially further help on cutting overall costs.

Cloud hosting has a lot of advantages that can greatly benefit a businesses’ growth and output. On a deeper level, however, CFOs and other IT professionals will quickly be able to discern notable cloud cost savings when implementing cloud computing.

Interested in how managed hosting servers and the cloud can positively impact your ROI? Contact us today and one of our Wowrack representatives will be in touch.

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