The Tipping Point: Cloud Costs Vs Business Benefit

Only a few years ago, the cost of moving to the Cloud for many businesses was higher than maintaining an on-premise IT infrastructure. An on-premise network required more capital investment up front although the cost of Cloud subscriptions reaching £200 per user per month wasn’t unheard of. Even though the total cost of ownership by going to the Cloud was spread over monthly payments, businesses often found Cloud to be a more expensive option over the longer term.   

Let’s not overlook the added benefits of Cloud computing including increased security, the ability to easily scale up or down, working remotely and collaboratively in shared documents, automating processes and integrating systems – the list continues. But these added benefits are no longer the stuff of pipe dreams; they are now normal and reasonable expectations from any business network user. So as business owners, do we now need to bite the bullet and accept the cost? 

We don’t think so; we think change is afoot and Cloud costs are at tipping point.  Here’s why: 

As a result of an overall increase in Cloud usage (reducing overall delivery costs)a pandemic-driven, unprecedented surge in demandimprovements to processes that remove the need for complex, expensive features; and pricing models that must be affordable for businesses in recovery mode, we believe we are now at tipping point between Cloud costs and business benefits.  

Let’s take a closer look at some of those factors: 

The Cloud has developed in a way that cuts the cost – this is not the same as prices being reducedSome of the expenses involved in moving to the Cloud have become unnecessary as new features have been added 

The value of the Cloud has increased and the ROI is instantly measurable – it’s become much easier to use, easier to deploy, and much richer in its features. Most importantly, it saves time and increases profitability. 

The network effect has come into play in the pandemic. The majority of businesses have moved to some degree of remote working and collaboration, enabled by cloud technologies such as 365.  The people we deal with – partners as well as clients – expect us to collaborate with them using this technology.  It has reached a critical mass that forces us all to use it if we want to do business.  As the number of people in this network expands, the value of being part of this way of working increases 

In recent work that we have done with clients, the cost per user over a three year period is the same for a Cloud or on-premise system. And so the tables turn… 

  • You get all the benefits of the Cloud with no additional costs over and above on-premise. 
  • The case for the Cloud has become overwhelming, accelerated by its mass adoption in the pandemic, it’s improved functionalityvalue and price. 
  • There still may be individual instances where it doesn’t make sense to go to the cloud, but they are in the decline. 

We are here to offer you an IT model that suits your business goals, and one that ultimately increases value while reducing effort and cost.   

Get in touch today to arrange a consultation. 

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