Cashed-strapped IT departments are always looking out for ways to increase efficiency while cutting costs simultaneously. Larger organizations with bigger budgets can adopt new IT technologies with higher price tags, however, companies in survival mode often can't. Small companies are often unable to secure financing to invest large sums of cash on high-end IT technology.
Spending thousands to millions of dollars on a new system that becomes technically obsolete after implementation is an owner’s or IT director's worst nightmare. Now, financially challenged IT departments can leverage the best technologies and resources without the usual high costs, capital risks and integration nightmares. IT departments are leveraging more resources and better benefits by moving to the cloud and Software as a Service.
Financial Advantages of Cloud and SaaS
Software as a Service, also known as Saas, is a service based on a pay-as-you-go model. Cloud storage is also based on this model as both require no licensing fees or large initial investment. Software licensing fees often consume a large percentage of an IT budget, especially if your company doesn’t have enough users to obtain volume pricing. The cloud ends software licensing woes. IT departments pays a predictable monthly fee to utilize the service at a cost that can be substantially less than your current IT budget—some companies save up to 50% or more.
Cloud storage and SaaS both allow IT departments utilization tracking of applications and resources accurately, without the need to build or maintain expensive data centers. These measurements can be used to analyze the cost required for each department to use applications and supporting infrastructure. The cost to provide IT technology and to support to each department will become more transparent, and strategic adjustments can be implemented to meet financial targets.
Technical Advantages of Cloud and SaaS
Investing in hardware and software is no longer a viable business decision for cash-strapped IT departments. In most cases, the expense of maintaining updates, software patches and troubleshooting is no longer a factor in the cloud; those tasks are handled by the service providers without disturbing your business.
Cloud storage and SaaS are web-based services which help to eliminate system downtime and lost productivity caused by overtaxed servers and hardware failures. Deploying infrastructure on-premise is often difficult, unpredictable and time-consuming. Cloud technology can be implemented in a matter of hours or days, which is significantly fast compared to the weeks or months often required for on-premise implementation. Additionally, cloud service providers practice strict security measures, safeguards and backup standards to protect and maintain the integrity of your data.
A survey conducted by Gartner Inc, a global technology research company, reported that enterprise spending on software applications increased by 4.5% in 2012. On the other hand, Software as a Service and cloud computing is expected to encompass a whopping 16% of enterprise spending by the year 2015! Cloud storage and SaaS have truly leveled the playing field.
Smaller and financially challenged organizations can now adopt the same technologies used by enterprise organizations with deeper pockets. As tighter budgets force companies to find cheaper alternatives to perform the same tasks, cloud and SaaS will remain the predominate focus for cash-strapped IT departments.