5 Ways Managed Cloud Hosting Saves You Money


The cloud computing industry is an overwhelming force in IT these days, with a $32 billion predicted market by 2016 in SaaS products alone. You may be holding off on any sort of cloud computing due to the resources involved in switching over to new products and infrastructure. Even if you wait to adopt widespread SaaS, IaaS, or PaaS products within your organization, managed cloud hosting provides you with significant direct and indirect cost savings. In fact, 82% of companies surveyed by NSK Inc realized cost savings after implementing cloud solutions. So how does the cloud wave a magic wand and put money back in your pocket?

  1. Cloud hosting eliminates the majority of hardware costs. When you want to implement a new on-site solution, you have to get approval for new servers, find the space to set up the hardware, and clear away a lot of red tape before you get up and running. Managed cloud hosting handles the hardware side with off-site resources, so you can reclaim the server room for other purposes and recapture that part of the budget.
  2. Use of cloud hosting removes the support burden on IT. Managed cloud hosting takes care of most support and service needs, removing this duty from the IT department. The cloud provider handles software and hardware maintenance, and often provides knowledge bases and training material to help end users get up to speed.
  3. The cloud’s economy of scale and resource redundancy cuts downtime. Your organization handles a lot of core competencies, but if you aren’t a tech specific company, you aren’t buying top of the line hardware. The managed cloud hosting provider uses economy of scale to bring this hardware to you, increasing your overall IT resources. The cloud computing model works on distributed resources, so the resource redundancy cuts down on the possibility of extended downtime. If one server fails, two others are ready to pick up the slack.
  4. Cloud hosting gives you the flexibility to scale your services as you need, both up and down. When you purchase solutions through a non-cloud company, you often pay for capacity you don’t need all the time. You purchase based on your highest traffic numbers, instead of the average.
  5. No more software licensing! Software licensing takes a big chunk out of many IT budgets. The cloud removes software licensing from the equation, as that cost is built into the service’s monthly price.
A fully cloud-based infrastructure may not be in the cards for your organization, but cloud hosting is a valuable tool to incorporate into your organization. The cost savings are significant, especially when it comes to indirect cost savings such as freeing up the IT department’s time for development, moving away from the software licensing model, and paying for what you use instead of what you could use.

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About the Author

Jess Coburn

It's Jess's responsibility as CEO and Founder of Applied Innovations to set the direction of Applied Innovations services to ensure that as a company we're consistently meeting the needs of our customers to help drive their success. In his spare time, Jess enjoys many of the things that made him a geek to begin with. That includes sexy new hardware, learning new technology and even a videogame or two! When you can’t find him at the office (which admittedly is rare), you’ll likely find him at the grill or in front of his smoker getting ready for some lip-smacking ribs to enjoy with his wife and two kids.