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Cloud Costs

Cloud computing is a real-time virtual environment hosted between a shared pool of configurable computing resources, i.e. networks, servers, storage, applications, services. There are a variety of benefits that can be gained for businesses using a cloud environment. Businesses may assume that if they start using a piece of high tech such as the cloud it will be very expensive, but there are options which can make it quite the opposite.


  • This level of agility can give businesses using cloud computing a real advantage over competitors. The cloud can also be used to easily test new applications with no need of upfront investment on purchase and install of equipment.
  • Cloud services are also typically more cost effective to use on a subscription based model, meaning you pay for what you use (elastic) and you can therefore more closely match your expenditure to your revenue pattern, moving your business to an Opex model with minimal upfront investment and no long term financial commitments.

Shared Resources

  • Another take on better resource usage is based on the fact the principle of ‘economies of scale’; cloud service providers, in general, more efficiently utilize physical resources and reduce energy consumption in contract to a traditional IT approach.
  • For small to medium sized businesses that have limited IT resources, the cloud allows you to focus on running your business rather than your IT. You can take advantage of a wide portfolio of compute, storage and network products, then cost effectively scale on-demand as your business grows — often while delivering faster time to market than previously achievable.

Virtual Office Space

  • As well as saving costs on physical hardware, software updates, management and data storage you will also save on floor space, electricity and cooling.

Scaling Up & Down

  • It’s easy to scale up your cloud capacity, deploying cloud servers automatically and scaling back can happen promptly and ensure you are only paying for what you use. on-demand virtual space of unlimited storage space and more server resources
  • Traditional servers require expensive upgrades that cost a lot eco. If your business doesn’t expand as much as you had hoped, that’s money you’ve wasted. Cloud service providers usually let you scale up and down seamlessly. Buy more gigs when you need to and save when you don’t.


  • Using less hardware reduces potential of downtime due to hardware failures. But in addition, your information and applications are evenly distributed across all the servers, which are connected to work as one. Therefore, if one server fails, no data is lost and downtime is avoided.
  • Cloud provides a reliable DR and backup solution without the complexity of set up on a physical device. Being able to access data again quickly after a failure minimises downtime and loss of productivity, and protects your business.
  • Decrease of downtime equating to an increase in productivity and profit gains, and to a more responsive service avoiding loss of customer loyalty.

Avoiding Breeches, Fines and Loss of Reputation

  • Using a CSP and trusting your data to an external source can seem less secure than hosting locally, but a good CSP will have the latest security technology, resiliency built in at infrastructure level and provide higher levels of monitoring and auditing than it would be cost effective for you to do in house.
  • Security breaches are happening more frequently and they can cause brand damage and loss of revenue, but also place you at risk of fines from regulatory and compliance bodies.

February 2018

Cloud Costs  
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