Several years ago, cloud computing was a fairly new technology that provided companies with a plethora of benefits, but many companies were skeptical. Now, companies integrate cloud computing so much into their everyday tasks that it’s become known as just “computing.” There are still some companies that have not yet transitioned to cloud computing. In case you are one of those companies, take a look at some of the top ways that cloud computing is helping companies decrease their costs below.

Initial Startup Costs

For companies that are just starting, initial costs eat up a large portion of their budget. Cloud computing services are inexpensive to get started, and can usually be deployed quickly. If you are creating a large on-premise system, your startup costs will be high, as you will be paying for new hardware and software, as well as staffing an IT department to keep it all running smoothly. These costs are virtually eliminated with cloud computing, as the cloud service is responsible for making sure that your services are running as they should be.

Maintenance and Upkeep

Maintenance costs on an on-premise system can be crippling, especially if expensive hardware is damaged and must be replaced. Upgrades and updates must be maintained, and you will most likely need full-time IT staff working to keep things running smooth. However, with cloud computing, there are no maintenance fees. You pay a fixed monthly fee, and the cloud service is responsible for maintaining their servers and networks, as well as updating and upgrading their hardware when necessary.

Storage

Cloud computing has made storage space cheaper and easier to obtain than ever before. No need to buy expensive hard drives and servers to store company data on, now you can just sign up with a cloud storage provider online and start uploading within minutes. Cloud computing is scalable too, so if your business starts to take off (or drop off), you can adjust the amount of storage space you are using accordingly.

Collaboration

Collaboration is one of the most efficient features that companies use to keep everyone connected and on the same page. When using a cloud service, you can have up to 50 users collaborating on the same file simultaneously. This saves an extreme amount of time, which in turn, saves the company money.

The End Game

Though not a comprehensive list, this gives you a general idea of the most common ways that cloud computing saves money.  Many more cost benefits are included such as shipping, auditing, inventory, support, virtualization, etc.  The ways cloud computing can save you money largely depends on the size and type of business, but in all cases it serves as a beneficial option.