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Karolina Bąba

Does cloud computing optimize IT costs?

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The ubiquitous global economic crisis does not favor entrepreneurs. Companies must face many challenges, such as reducing IT management expenses. In the face of widespread cost-cutting, cloud migration can bring desired savings.

IT security

According t the latest report from Polcom and Intel, “IT investments in times of crisis. Cloud and new technologies. Perspective for 2022-2023”, for 79 percent of organizations, moving resources to a cloud environment has brought savings in terms of security and ensuring continuity of operations. From the perspective of modern businesses, the lack of service interruption and a high level of security for processed data are crucial areas that need to be taken care of.

An inadequate level of security for sensitive cooperate resources can result in increased susceptibly to cyberattacks, which in turn can lead to business interruption. The consequences of successful hacking attacks often include not only financial loses but also reputational damage and have a negative impact on organizational development.

 

Change of the payment model

In the assessment of 51 percent of respondents, the transition from CAPEX to OPEX accounting allowed for savings at the level of 10-30 percent in the area of IT-related expenses. Thanks to the subscription-based billing model, companies only pay for the actual use of necessary computing power.

Migrating resources to the cloud also allows for reducing costs associated with maintaining own IT infrastructure. By using the cloud environment, entrepreneurs do not have to buy additional hardware providing high computing power, which is only needed during seasonal sales spikes.

 

Lower electricity consumption

According to data collected in the report by Polcom and Intel, outsourcing IT also allows for reducing energy consumption. 29% of companies have reduced electricity consumption by 10% by moving resources to the cloud. On the other hand, in the assessment of 26% of organizations, these savings reach up to 20%.

 

Savings through the cloud

The rising cost of doing business, increasing fuel and electricity prices, delays in debt regulations, are the new realities for many businesses at the moment. Inflation affects virtually all areas of activity, but the downturn in entrepreneurs’ moods, disruptions in supply chains, a cooling economy, and reduced investments do not have to be so noticeable. If a company approaches the issue of digitization and the migration of certain IT resources to the cloud properly, it can significantly reduce its operating costs – says Anna Kulikowska, Business Development Manager at Polcom.

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