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How to Possibly Lower IT Costs in the Cloud

With all the hype around the benefits of cloud computing, probably the single most compelling reason more small businesses are moving parts of their network to the cloud is to lower their IT costs.

With all the hype around the cloud and the benefits of cloud computing, probably the single most compelling reason more and more small businesses are moving parts of their network to the cloud is - no surprise - to lower their IT costs.

Not only can you save money on software licenses, but hardware (servers and workstations) as well as in IT support and up-grades.  Since the cloud uses a ‘pay as you go’ model, you no longer have to maintain software licenses for every seat in your company instead you pay a monthly fee and only pay for what you use.  For some companies this model can provide a significant savings in software costs.  

The ‘pay as you go’ model is also ideal for fast growth companies or companies that need to scale their workforce significantly for new projects.  Instead of having to secure software licenses for contract workers, you simply increase the number of users in the cloud.  Similarly once the project is over, you can reduce the number of users in the cloud.

Another area of savings is hardware.  Most servers come with a 3 year warranty.  After 3 years it is typically more expensive to maintain the old server versus leasing or buying a new one.  Like a car, it can be more expensive to keep an old car running than buy or lease a new one. 

There is also an opportunity to save in IT support and up-grades as the software and server will be maintained by the cloud provider and included in the fee you will pay them for their services.

While there are many areas of savings, in particular if you hate constantly writing big, fat checks for IT upgrades, you’ll really want to look into cloud computing.

If you're a business owner and you'd like to get more information on cloud computing you can download a free report at http://www.ciolanding.com/resources/free-cloud-report/  or you can sign up for an Executive Cloud Computing webinar on June 27 at 11am.  To sign up go to www.CIOLanding.com/CloudWebinarSignup

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

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