15 January 2014

Financial Advantages of Moving to Cloud Hosting

How small business entrepreneurs can save money with cloud hosting?

Why move to the cloud? There are a lot of good reasons, but primarily it makes good business logic. One can all it effectiveness, or call it doing more with a smaller amount. But no matter, which spin you prefer, by moving to the cloud computing you will be able to on what’s vital: your business.

You can use cloud computing in almost all types of applications, and not just business safety. While the main idea of cloud computing can sometimes seem difficult to grasp, it’s clear that it is widely used to save its users money – especially for SMBs and small office home office users.

Below are four financial benefits of moving to cloud hosting:

1. Fully utilized hardware:

Cloud computing help companies bring usual economies of scale. The feasibility of cloud computing means the high use and smoothing of the inevitable peaks and trenches in workloads. With other organizations' computing needs you will be able to share server infrastructure. This helps the cloud computing provider to optimize the needs of hardware of its data centers, which in return give you lower cost.

2. Lower power costs:

Cloud computing uses lower power. That's an inevitable outcome of the economies of scale we just discussed above: Utilization of better hardware means the use of more power. Your servers won’t be fully utilized when you run your own data center. Unused servers waste lot of energy. This is because a cloud service provider charges you less amount of energy used, then you are spending to run your own data center.

3. Lower people costs:

The staffing budget is often the biggest single line item, whenever we analyze organizations’ computing costs; it often makes up about half of the total amount. Why is this so high? It is usually difficult to find good IT people and those who successfully found them; they must have to pay high salaries and benefits to them. And that is even before you add in the cost of hiring the right staff with the enough of the experience.

You must have to give some amount to the staffing provider, when you move to the cloud. But this is a much smaller amount if you are planning to do all the work in-house.

4. Zero capital costs:

When you are planning to run your own data servers, you are looking at up-front capital costs. But as soon as you enter into the world of cloud hosting, it is someone else problem to finance that capital investment.

Sure, if you are planning to run servers yourself, now it’s the accounting wizards turn to do their amortization magic which makes it appear that the cost over a server's life gets spread. But that cash still has to come from somewhere, so the capital generated from it can't be invested in the business—be it real money or a line of credit.

Author Bio:

The article is contributed by Gloria Philips. She has several years of experience working in the web hosting industry and loves to share hosting related secrets and how to find the cheap web hosting sites.