Can a company save 20 to 40 % by moving to the cloud?

On our experience, and on some recent studies, yes. It depends on several variables, of course. How much you end up saving comes down to a few basic factors: the size of the company, the state of the current IT infrastructure, and the type of cloud arrangement you choose.

Where do the savings look most attractive for different kinds of company? Here are a few examples:

Large companies

Extensive infrastructure: Large companies usually run substantial IT infrastructure. Moving to the cloud markedly reduces the need to invest in physical hardware such as servers and storage. That equipment is expensive to buy, and it also needs regular maintenance and replacement every few years. Cloud arrangements also remove the need for the cooling systems a server room depends on, which saves further on energy.

Capital expenditure (CapEx) versus operating expenditure (OpEx): Large companies often prefer to move from capital expenditure, meaning hardware investment that gets written down, to operating expenditure, meaning regular payments for cloud services. That can improve cash flow and financial flexibility.

Pressure on staffing: Cloud services usually include management and maintenance, which means the company needs fewer IT staff to run servers and networks.

Medium-sized companies

The need for flexibility: Medium-sized companies may be growing, with their resource needs changing quickly. Cloud services scale up and down fast, so the company pays only for what it actually uses.

Simpler IT: Many medium-sized companies do not have the resources for a large IT department. The cloud can reduce IT complexity and lower the cost of administration and support.

Remote work: Cloud services make data and applications easier to reach from anywhere, which supports remote working, can raise employee satisfaction and can cut what you spend on office space.

Small companies and startups

Low initial cost: Small companies and startups often lack the capital to build a substantial IT environment. Cloud services, which need little or no up-front investment, suit them well.

Access to advanced technology: The cloud gives small companies access to current technology and tools that would otherwise be out of financial reach.

The cost of security: Small companies are statistically among the most vulnerable. Cloud platforms often provide advanced security protocols kept updated against the latest threats, which lowers the risk of a breach. Backup and recovery in the cloud also reduce the risk of losing data. These services can add up to significant savings against what a data loss or a security incident costs.

Overall, how much you save and what the move to the cloud does to your finances depends on each company's own needs and circumstances. Detailed analysis and strategic planning are what make the most of the advantages. Cloud computing keeps expanding, which is why discussions about the best cloud arrangements, about hybrid and multi-cloud strategies and about migration are worth having.