5 Costs Small and Medium Businesses Can Save With Cloud Adoption
Cloud has a reputation as an 'economical service' that is effective in reducing costs. In particular, there are many economic advantages that small and medium-sized enterprises can obtain, and companies are accelerating their cloud migration. Here are five costs that small businesses can reduce with cloud adoption:
1.build cost
In order to introduce your own server, huge costs are required from building the server room to maintenance. Startups and SMEs often lack capital, so introducing their own server can be a huge burden. However, the cloud has low adoption barriers, so you don't have to take the risk of a large initial capital investment. It can also dramatically reduce the time required for deployment.
2.cost of use
The cloud can reduce not only the cost of deployment, but also the cost of using it. Cloud pricing is either pay-per-hour (IaaS), storage capacity-based (SaaS), or memory-used per hour (PaaS). Small and medium-sized enterprises (SMEs) basically do not have as much usage as large enterprises, so being able to 'pay as you use' is more advantageous for small and medium-sized enterprises with low usage.
3.Expansion cost
Using a physical server consumes a lot of money and time to expand the server. This incurs losses in the process of trying new services or expanding demand for services. However, the cloud takes just a few minutes to expand or contract capacity. Therefore, it can be said that the cloud is essential for growing startups and SMEs.
4.Labor costs
Labor costs are one of the largest contributors to a company's computing costs. This is not a big problem for large companies with sufficient professional IT manpower, but SMEs that do not have a dedicated IT department have to make separate investments to recruit excellent IT talents or bear the burden of management by non-professionals. However, in the cloud, the service provider directly manages the server and is responsible for the maintenance, so it can reduce the cost and effort of setting up an IT manpower separately.
5.communication cost
The cloud creates an environment where you can work anytime, anywhere as long as you are connected to the Internet. The cloud-based file-sharing app updates documents in real time, allowing you to view and collaborate on the same documents with your team members while away from work. In addition, because all software and data are stored on a central computer, it is easy to manage and control, and it is easy to keep track of the work progress of the team members. While building business processes like this used to be a very challenging task for small and midsize businesses, the cloud makes it easy to adopt well-crafted processes, such as through collaboration solutions.
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