Cloud computing helps businesses reduce costs

Friday 16 November 2012

Virtualisation

It is a myth that adopting cloud computing hits businesses on the bottom line, according to one commentator.

Writing for Information Week, Charles Babcock said that because hosted services allow companies to avoid making capital purchases, there is always a cost advantage in the short run.

He said that for some companies, the roadblock is determining precisely how much a given IT operation costs over a three or five-year period.

Mr Babcock said that ideally, businesses need to compare the amount of money they spend on in-house IT infrastructure and software with what they would spend in the cloud.

"This enables responsible IT admins' best estimates to be juxtaposed against known cloud costs," he stated.

Mr Babcock noted that the cloud is automating processes that remain the charge of humans in enterprise IT.

And this alone ought to indicate where both short and long-term cost advantages reside, he told the news provider.

By accessing hosted services, companies are able to reduce both the amount they spend on IT solutions, but also the number of staff required to manage their infrastructure.

Having a smaller IT team in-house can lead to significant reductions in expenditure.

Posted by Alex Boardman