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

In our experience, and according to some new studies, yes. Of course this is contingent on a number of variables. The costs we can ultimately save depend on several key factors, such as the size of the company, the state of the current IT infrastructure, and the type of cloud solution chosen. 

Where can we find attractive savings for different types of companies? Here are a few examples:

     Large Companies

Large companies are often characterized by a robust IT infrastructure. Migrating to the cloud significantly reduces the need to invest in physical IT hardware, such as servers and data storage. These devices are not only expensive at purchase, but also require regular maintenance and replacement after a few years. Additionally, cloud solutions eliminate the need for the cooling systems essential to running server rooms, leading to further savings on energy.

Capital Expenditure (CapEx) vs. Operational Expenditure (OpEx): Large companies often prefer to shift from capital expenditure (investments in hardware that are amortized) to operational expenditure (recurring payments for cloud services), which can improve cash flow and financial flexibility.

Staff resource strain: Cloud solutions often involve administration and maintenance, meaning the business needs a smaller IT staff to manage servers and the network.

     Medium-Sized Companies

Need for flexibility: mid-sized companies may be in a growth phase where their resource needs change rapidly. Cloud solutions allow for rapid scaling up or down, which means companies only pay for what they actually use.

Simplify IT: Many mid-size businesses don't have the resources to manage a large IT department. The cloud can reduce the complexity of IT, and lower management and support costs.

Remote working: Cloud services allow easier access to data and applications from any location, which supports remote working models and can increase employee satisfaction while reducing office space costs.

     Small Companies and Start-Ups

Low start-up costs: Small companies and start-ups often do not have the capital needed to create a large-scale IT environment. Cloud services that require minimal or no upfront investment are ideal for them.

Access to advanced technologies: The cloud gives small businesses access to cutting-edge technologies and tools that would otherwise be cost-prohibitive.

Security Costs: Small businesses are statistically among the most vulnerable. Cloud platforms often offer advanced security protocols that are updated against the latest threats, reducing the risk of security breaches. In addition, cloud backup and recovery strategies reduce the risk of data loss. These services can lead to significant savings compared to the costs associated with data loss or security incidents.

Overall, how much you will save and the exact financial impact of migrating to the cloud will depend on the specific needs and circumstances of your business. Detailed analysis and strategic planning are key to maximizing these benefits. Cloud computing continues to expand, making discussions on best cloud solutions, hybrid and multi-cloud strategies as well as cloud migration highly relevant.

For more information, we're here to help.