Best Ideas for Cost-Effective Cloud Computing

by Aniruddha Prakash
Nov 24 7 min read

Best Ideas for Cost-Effective Cloud Computing

The modern digital revolution has brought about a myriad of changes in the very roots of data handling, reimagining the way we build data centers. Investing in cloud computing has become a brilliant way to optimize between spending, scaling and security for your data.

While migrating to cloud is not just about savings, it definitely plays a strong role in setting up a new data center, fully migrating your on-site data centers to the cloud or setting up a hybrid system. Employing a powerful cloud computing system to store and manage your data provides many direct and indirect cost savings to keep you a step ahead of traditional on-site servers.

Implementing Direct Cost Savings

The power of cloud computing enables you to overcome the limitations of on-site data management in many ways; overcoming the setbacks of both direct and indirect costs to deliver a synchronized platform for data management.

What are Direct Costs?

Direct costs of running a data center typically involve buying and setting up servers, software licensing costs, maintenance costs, or expanding storages. All the costs including setting up hardware, staff hiring costs, on-premise support costs, and any other costs attributed to upkeep of your IT service come under this blanket.

Calculating Your TCO

The first step towards building a smooth online system for cloud computing is calculating your Total Cost of Ownership. This includes estimating your provisional requirements for server size, software licensing requirements, hosting capabilities and other requirements.

A rough idea about your TCO helps develop a clearer understanding of your overall expectations involving cloud computing and whether a total or hybrid shift to the cloud would be most suitable for your goals.

Factoring in Direct Hidden Costs

Often in a rush to migrate to a cloud setup, hidden costs like large data transfers fee, app integration, online connectivity costs and final setup testing go unnoticed. These expenses add up to a significant amount down the line, often hampering a smooth migration.

However, the overall cloud transition more than makes up for the hidden costs in the long run, given they are all accounted for.

Implementing Indirect Cost Savings

Migrating data to a cloud service also generates some indirect expenses as well; resources which play an important role in the upkeep of your cloud data center but aren’t directly involved in the active migration.

What are Indirect Costs?

Indirect costs involve expenses that crop up in the wake of the initial shift towards a cloud data center. These include revenue loss due to data center downtimes, costs of hiring external resources to overlook your data migration to the cloud, costs involving after-care and upkeep of physical data centers, and other IT expenses.

These costs are significantly harder to calculate than direct costs since they vary with every operation and are often company-specific. However, taking the time and pinning down indirect expenses in your TCO portfolio will make it easier for you to plan ahead.

Improving Upon Datacenter Downtimes

Since server downtime is rare in cloud systems, cloud migration helps you to significantly bring down revenue loss due to server malfunction. A more secure system of data management gives you peace of mind about your data sensitivity during server upgrades.

Outsourcing Data Center Upkeep

Cloud computing also significantly drives down costs in terms of data center management. Since all your data is stored secure in a remote server away from company premises, it helps free up time and resource you would have otherwise spent on the upkeep of on-premise data centers.

Is Moving to the Cloud the Right Decision?

This is primary doubt that arises at some point or the other in many companies looking to migrate to the cloud. Many times, there is no straight answer and consulting with IT firms specializing in the field is a sound decision to take first.

At Atomic North, we possess dedicated teams to look over your data management systems, carefully weigh all the facts and options and deliver a sound opinion on whether a hybrid or a full cloud migration would be better suited for your organization.

by Aniruddha Prakash

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