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We live in the era of cloud computing. I mean, being able to access relevant data wherever I am, whenever I want? Sign me up, please! And yes, a lot of tech companies are thinking the exact same thing. Which is why cloud migration–the act of switching business operations to the cloud–has become the talk of the tech town lately. Now, if you’re currently undecided about whether or not to move your business systems to the cloud, I’ve something that might help! Today, I’ll be talking about how you can save operational costs with cloud migration in business. 

Yes! There’s more to it than you’d think! 

But before we launch into it full throttle, let me tune you into the hype around cloud computing.  Every business (small or large) has always needed to document data. Earlier, this documentation used to happen on-premises, on servers that were located in the office. 

However, nowadays you don’t need to stay glued next to a server to get access to essential information. With cloud computing, you can obtain–and work on–this information no matter where you are.   

The cloud basically functions as an online network of distant servers that stores, controls, and processes your data. And in this age of remote working, isn’t that a massive advantage to have? 

So if you’re considering cloud migration for your business, this is your sign to get on with it! Don’t worry about the technicalities, because TheCodeWork’s team of cloud experts will be with you every step along the way. 

Talking of which, one of the major benefits of cloud migration is its cost-saving abilities. So let’s take a look at all the ways in which moving to the cloud can help you save some major bucks. 

Save operational costs with cloud migration – Really?

What do you think is more expensive: hosting your tools in the cloud or on-premises? If you ask around, chances are you’ll get a dozen different answers. The thing is, although it seems like a fairly straightforward question, the answer is actually quite complex.

Let me explain. 

If you start comparing the up-front costs (subscription, migration, etc.) of cloud computing , it’ll typically appear to be more expensive than on-premise software. 

However, you have to look at it as a long-term game. On-premise software starts to appear less like the wiser option and more like a leaky-tap on your profits when we consider long-term value.

Why, you ask? Well, because the costs of on-premise software is like an iceberg. Most of it’s hidden, and it’s higher than you might expect. (I’ll explain how, later in the article). For now, let me give you some straight numbers on how cloud migration has helped to cut costs. 

A recent survey of 35,000 servers found that right-sizing servers by migrating to the cloud results in 30% average yearly cost savings. Furthermore, an Office 365 study revealed that IT experts who upgraded to the cloud saw around 20% reduction in overall costs.

So you see, the real question here is: are you looking at the long-term view or short-term view? 

Do you only compare the immediately apparent costs? Or are you taking a broader view? Accounting for all costs associated with ownership (server replacements, IT labor, etc.)?

Once you see beyond the tip of the iceberg, you’ll discover a number of ways in which cloud migration actually saves money over time. 

Saving money on your IT systems sounds like a good idea, right? So why not make it a reality by switching to the cloud? 

Talk with TheCodeWork team now to discuss migration strategies! 

Now…How to save operational costs with cloud migration?

And now, we have finally come to the core of this article (I know you were waiting for this!).

Let’s take a look at the five major ways in which you can save operational costs with cloud migration.

1. Reduce the chances–and cost of–downtime

A quick review on the concept of downtime:

Downtime is one of the biggest challenges of most tech businesses. It refers to the period of time when a computer, server, or IT system is not available, offline, or not functioning. And it costs heavy in terms of lost hours of productivity. Ugh!

As per a 2016 report by the Ponemon Institute, downtime costs about $9,000 every minute on average. That’s more than $500,000 per hour! Since then, this estimate has only increased.

And that’s only an average, of course; some major businesses stand to lose much more. For example, Facebook suffered a 14-hour outage in 2019, at an estimated cost of $90 million. 

When using on-premise software, your office’s IT team is the only one responsible for downtime. This can cost you a lot in terms of 

• internal productivity
• revenue
• overtime 
• emergency pays 
• SLA penalties.

….etc. 

And this is where cloud computing can become your financial savior. Here, you can delegate these responsibilities to a cloud vendor. Rather than burdening your team with uptime and hoping that your servers and systems can withstand a significant incident.

For instance, most cloud service providers guarantee uptime of between 99% and 99.999%. So even if a major incident does occur, you have the resources to deal with it quickly and at no extra cost to you. How good does that sound? 

Want to eliminate the extra costs of unexpected downtime? Switch to the cloud and let go of these worries forever! Talk to the TheCodeWork’s tech team to create the best cloud migration plan for your business. 

Click here to book your free appointment with us now!

2. Unburden your tech team

Compile a list of all the things your tech team needs to do in order to manage your on-premise servers; it will grow quite long soon. 

• Performance enhancements
• Scheduled upgrades
• Server replacements
• Security patches
• Setting up VPNs for remote access
• Manual integrations
• Any incident and change management, 

….and so on.

However, here’s the good news. 

All of those responsibilities shift to your vendor when you move to the cloud. They are in charge of

• maintaining servers and updating security
• switching outdated technology, and 
• updating software frequently to fix bugs and add new features

This allows your IT teams to concentrate on more important, innovative, or urgent tasks. It’s also the reason why businesses report 40% more productivity post cloud migration, as per a market research report from International Data Corporation (IDC).

Fancy saving some money with reduced IT costs and enhanced productivity? Well then, start planning your cloud migration strategy with TheCodeWork’s team of cloud experts now!

3. Cut back on operational costs

On-premise or legacy software also has a lot of unaccounted-for operational and material costs that don’t apply to cloud computing. 

This comprises:

• Server costs

Servers require routine maintenance and physical replacement because they only last three to five years on average. And that’s not all! According to statistics, maintaining a server that is older than 5 years costs 200% more.

• Server support costs

On-premise/legacy software also requires periodic maintenance, replacement, and purchases of supporting hardware, components, and physical assets. Of course, these are additional costs you need to factor in. 

Managers report that most 5+ year old servers go down about three times more frequently than a new server, even after increased support. Now think about that amount in terms of lost productivity hours. Yes, it does cost more than you’d expect! 

Eliminate forever the cost of supporting in-house servers by shifting business systems to the cloud! Reach out to TheCodeWork now to draw up plans for Operation Cloud Migration!

• Software licensing and renewal (and over-licensing)

Companies in the US and the UK lose up to $34 billion annually due to over-licensing. I know! It’s quite an astonishing figure.

Now, you don’t want to have to pay for software that you barely ever use, do you? 

But guess what! When you migrate to the cloud, your cloud vendor will automatically track and update your software usage and adjust the costs. So now you only have to pay for the software you’re using, when you are using it. 

Sounds like a sweet deal, doesn’t it? 

Stop worrying about software licensing and user tracking altogether! Let TheCodeWork’s tech team shift your existing systems to the cloud at the earliest!

Click here to chat with us now! 

• Maintenance

When you hand off server maintenance to your cloud vendor, you can eliminate the need for temporary maintenance staff or contractors. Also, save yourself a few bucks in the process. 

• Real estate/space 

Physical servers require physical space, which requires money (duh!). However, migrating to the cloud can free up current space for other purposes. Or completely eliminate the cost of data center real estate.

• Time/audits spent managing assets

The greater the number of assets your IT team has, the more assets your asset management practice needs to keep track of. Yes, I’m talking about physical servers, load balancers, etc, or non-physical assets like licenses and databases. 

Obviously, this will cost you more in terms of time, effort, and resources. However, this is one more item you do not have to worry about once you switch to the cloud. 

4. Cut back on environmental costs

When comparing on-premises and cloud, the cloud is both more cost-effective and environmentally friendly. According to a case study by the Lawrence Berkeley National Laboratory, switching business software like email, CRM, and more to the cloud  would reduce these software applications’ overall energy consumption by 87%.

And this is easier on your pockets too! By eliminating the need for data centers or multiple in-house servers, you’ll save up on energy. And as we all know, energy costs money.  Therefore, when I say cloud is up to 93% more energy-efficient than on-premise software,  it also means that it’s less expensive.

So if you’d like to reduce your company’s carbon footprint and make your business more profitable, the cloud is the way to go! What are you waiting for? Get the ball rolling on your cloud migration journey with TheCodeWork now!

5. Offload your scaling expenses

Business operations ebb and flow with time. And all software resources have to be made with scaling (up or down) in mind. However, the task is trickier than you might think! Especially with on-premise software. 

The issue with on-premise hosting is that your IT team must estimate how much computing resources you’ll require. If they make a 

• high estimate, you will have to pay for resources (servers, load balancers, and power) that you don’t require.

On the flip side, if the team makes a 

• low estimate, you’ll have to go through a time-consuming, expensive manual scaling process later on. To keep up with demand, you’ll have to add more computers or servers, which will cost money and require added labor. 

Needless to say, a wrong assumption in either direction can significantly affect your finances. Seems like there is no winning with this, doesn’t it? But don’t give up just yet! There is a solution for these scaling issues! And it is–you guessed it already–the cloud! 

With the cloud, 

• you will only pay for the computing resources you are using at any given point of time
• furthermore, the cloud platform will automatically scale your systems up or down as and when necessary. 

Indeed, the cloud has saved businesses up to 30% in scaling expenses, as per a report by TSO Logic.

So unburden yourself of all your business scaling woes! Migrate to the cloud now–TheCodeWork has got your back. 

From assessing migration costs to developing custom cloud architecture for your business, we will be with you every step of the way.

Simply give us a call here!

Let’s calculate investment and profits

Now comes the trickiest part of the process– calculating just how much returns you’ll get on your initial investment towards cloud migration. To calculate your return on investment (ROI), you’ll need an account of your

• Initial investment, and
• Gains

To calculate your initial investment, you must track and add up the price of

• professional services, 
• internal resources, 
• software licenses, 
• data migration, cloud subscription, and 
• any necessary retraining on cloud tools

Now, it’s time to add up your gains. Calculate your savings on 

• Office space 
• Software licenses, 
• Hardware and software licenses 
• Maintenance staff (both in-house teams and outside contractors)
• Frequent upgrades, 

…etc. 

And the list doesn’t stop here! Just think about the time (and money) saved simply by having quicker access to new features that enhance collaboration, productivity, and security. 

Most importantly, you must factor in the cost of downtime in your calculations. Indeed, even one-hour’s worth of less downtime can save companies hundreds of thousands of dollars per year!  

If you’re still debating the merits and demerits of cloud migration, re-read the above list! And book your free cloud consultation with TheCodeWork team now!

Bottom Line

The bottom line is, although cloud migration may seem expensive initially, you will be reaping its benefits in the long run. And yes, saving money is a great thing, but there are other benefits to the cloud as well! Enhanced employee productivity, reduced IT workload, energy-efficiency–just to name a few. 

So now is your time to explore everything the cloud has to offer, especially save operational costs with cloud migration. And maybe plan your migration journey too! 

Not sure where to begin when planning a migration? Well, that’s what TheCodeWork is here for! With over 4 years of experience in cloud architecture and migration, our team of experts will assist you at every stage.

So reach out to us for a chat regarding your cloud migration plans now!