Keeping competitive in a modern business environment requires continuous innovation and improvement. Businesses today have many challenges to deal with that simply didn’t exist a couple of generations ago.
New challenges keep cropping up as technology continues to improve and change the way we do business. Companies that don’t keep up with emerging trends in information technology are putting themselves at a competitive disadvantage.
Yet, the cost of continuously upgrading your business’ hardware to keep up with the latest trends and technologies quickly proves to be ruinously expensive. The bigger your IT department is, the more expensive a full upgrade can become.
So, how can your company have continuous IT innovation without the financial strain of enormous capital expenditures?
One way is to transform your IT capital expenses into operating expenses by using the expertise of a secure cloud service provider.
Going from Cap Ex to Op Ex
Between expenses such as purchasing a set of servers, installing those servers, acquiring a firewall, load balancer, networking equipment, switches, and power, the capital expenses of acquiring a shiny new server farm are enormous.
All of these expenses can be categorized as capital expenses, since they involve the acquisition of an asset.
The issue here is that these assets will depreciate in value over time. A computer processer that is considered top of the line one year might be obsolete the next. As equipment reaches obsolescence, the cycle of making sweeping capital expenditures begins all over again.
However, by using a secure cloud service provider, you can have access to the latest IT innovations without having to invest in the cost of hardware. This transforms IT for your organization from a capital expense into an operating expense.
The benefit here is that the monthly recurring costs of hosting services, as operating expenses, can amortize the cost of building out your own infrastructure over time. The scalability of cloud services helps make cloud computing even more affordable for businesses of all sizes.
Why Scalability Makes Cloud Computing More Affordable
You might be wondering why using a secure cloud service provider would be so much more affordable than simply buying your own IT infrastructure.
One of the big reasons why using a secure cloud service provider can be much less expensive than buying and maintaining your own server farm is the scalability of hosted cloud services.
When you buy a server or group of servers to run your company’s critical business applications for your employees to access, you’ll be paying the same initial costs and upkeep costs whether you use 10% or 100% of your server’s capacity.
With a secure cloud computing service that offers multitenant architecture through virtualization, you only have to pay for the capacity that you actually need. This can save a lot of money over time.
For example, say your business has 196 employees spread across three business locations. To enable access of information across all three sites, you decide your company needs a cloud infrastructure that allows each employee access to data at all times.
If you purchase and install your own server with a capacity of 1,000 users, you’d be using less than 20% of the capacity and infrastructure you paid for. If you get hosting on a secure virtualized cloud solution, then you only pay for the user capacity you actually need, while still having the option for adding more capacity in the future if you need it.
How Cloud Services Providers Give You Continuous IT Innovation
The financial advantages of using a cloud services provider (CSP) over building your own network infrastructure are pretty clear. The next question is, “how can CSPs help your company stay on top with continuous IT innovation?”
To be honest, CSPs are under enormous pressure to be agile and proactive with their IT development and investments. CSPs that can’t keep up with the latest industry trends and technologies fall by the wayside, so they constantly strive to provide top-of-the-line resources.
This puts the onus on your cloud services provider to keep up with all of the developments in hardware, processors, storage, monitoring, security, and software, freeing up your IT staff to focus on other tasks.
In short, your CSP will make all of the tech investments for you without your having to lift a finger, or spend one dollar above what you pay for your cloud hosting. This is how using a CSP gives you the benefits of continuous IT innovation without the distractions of investing in and maintaining these innovations yourself.
Want to know more about how the cloud can work for you? Download our eBook for many more ways your company can benefit from the cloud.