Five financial benefits of moving to the SMUSD Cloud

1. Fully used hardware

Cloud computing brings about economies of scale. The practicalities of cloud computing mean high utilization in workloads. What is more, your workloads is going to share server infrastructure with other organizations’ computing needs. As a result, this permits the SMUSD cloud computing vendor to optimize the hardware demands of its data centers, which means reduced costs for you.

2. Lower power costs

Cloud computing utilizes less electricity. That is an inevitable consequence of the economies of scale. Better hardware utilization means more effective power use. When you operate your own data center, your servers will not be fully used unless yours is a very unusual organization. Idle servers waste energy. Thus, a SMUSD cloud service vendor can charge you less for energy used instead you are spending in your own data center.

3. Lower people costs

Whenever people analyze their organizations’ computing costs, the staffing budget is often the biggest single line item, it often marks up more than half of the whole. The reason is good IT people are expensive; their salaries, benefits as well as other employment costs usually outweigh the costs of hardware and software. And that is even before you add in the cost of employing good staff with the proper experience.

As you migrate to the cloud, some of the money you pay for the service moves to the vendor’s staffing costs. However, it is typically a much smaller amount than if you did all that work in-house.

4. Zero capital costs

As you run your own servers, you are looking at up-front capital costs. However, in the world of cloud computing, financing that capital investment is not your problem.

If you run the servers on your own, the accounting wizards do their amortization magic which causes it to turn up that the cost gets spread over a server’s life. Nevertheless, that money still has to come from, so it is the capital that otherwise can not be invested in the business.

5. Resilience without redundancy

When you operate your own servers, you have to purchase more hardware than you need in case of failure. In more serious cases, you have to copy everything. Instead, typical clouds have a lot of locations for their data centers. That is a less expensive way and also another way to enjoy the cloud’s economies of scale.