Calculating profit is one off the most basic functions in business accounting. A profit is the amount of revenue (moneytaken in by a business) minus the expenses a business needs to pay out. One way companies focus on boosting their profits is by focusing on activities that will increase sales which increase revenue which in turn means more money coming in. Another way is for businesses to reduce the amount of money they have to spend on expenses. A key area of expenses that can be optimized by businesses is the cost for IT.
Cloud computing, whether public, private, or a hybrid of both models has helped businesses of all sizes increased their profits by reducing their overall IT budgets.
Here are 3 ways your company can boost profits with the cloud.
1. Reduces Cost Of Maintaining Equipment
Not only are servers expensive to purchase and deploy, but they cost a lot of money simply to maintain. Companies need to allocate in-house IT staff for regular maintenance of servers or outsource this function to a third party. Servers also use up a lot of energy which in turn means higher electric bills. Plus server rooms need to be kept at a relatively low temperature as servers expend a lot of heat. This means having a separate climate control system for the server room that has to work against the heating system in the winter time to keep the server room nice and cool, and work overtime during the summer adding to the AC bill for the rest of the office.
The cloud virtually eliminates these costs as computing and processing is done off-site by a cloud provider. The cloud providers such as Amazon Web Services (AWS) or Microsoft Azure take care of maintaining and operating the servers. All you pay is one fee each month for service. Even if you decide to employ a private cloud in-house, server virtualization allows multiple servers to be run on a single physical machine, which can significantly reduce energy and heating and cooling costs for the server room. The less money spent on utility bills means the more money your business can keep.
2. Scalable, On-Demand Computer Power
With the cloud you only pay for what you need. If your company is in the process of testing an app, they may need additional storage space and computing power to develop, test, and then deploy the application. However, once this process is done, the operation is often scaled back. Instead of spending money on purchasing additional hardware, you can scale up or down in the cloud with a few clicks of a mouse. Seeing you only pay for what you use, you can keep IT budgets incredibly tight. This helps eliminate over budgeting when trying to plan IT budgets as you can keep more control over what resources are used and when.
3. Supports a BYOD Culture
The cloud supports bring your own device (BYOD) policies for businesses as it allows employees from any location to access work related files and data from any device – as long as they have an active internet connection. If employees use their own devices, it means your company saves money have having to by equipment for each staff member. The best part about the cloud and BYOD is you don’t even have to move everything to the cloud to establish BYOD; you can simply deploy business applications that are cloud-based. For example, Microsoft Office 365 has enterprise level security and device management policies that allow your staff to securely access the entire Microsoft Office suite including their email on any device – without having to move your entire IT infrastructure to the cloud (although doing so would mean more cost saving opportunities!).
If you have questions about how your business can increase profits by deploying cloud services, contact Privo IT today!