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Cost cutting and cost-benefit analysis

One of the most significant benefits of cloud computing is cost savings. It eliminates the need for upfront capital investment and also cuts down on costs such as space, power and personnel. Five significant ways in which cloud enables cost cutting are:
• The pay-as-go-model eliminates the need to spend on the purchase and maintenance of idle servers.
• The cost of maintenance (personnel, power and space) is taken care of.
• It allows businesses to focus on their core business functions, thus paving the way for better innovation and greater revenue.
• It eliminates the need to spend on additional resources as the business expands. Cloud model is highly scalable at a fraction of the cost.
Cost for back-up, restoration, depreciation and replacement of faulty hardware are taken care of by the service provider. This is a huge cost cutting measure as compared to the traditional on-premises infrastructure.
To ensure that the move to the cloud is truly a cost efficient choice, all hidden costs must be unraveled. A comprehensive cost benefit analysis must be performed to achieve a holistic assessment of the cloud solution.


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