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Do Organisations Save Money When Moving to the Cloud?

There’s nothing worse than having to have that conversation about money borrowed or lent to a friend. Now, I don’t want to make things awkward between us but I can’t avoid it any more. We need to talk cash.

It’s that time of year when everyone is spending, spending, spending money like there’s no tomorrow (having said that, there might not be a tomorrow if the Mayans turn out to be right…). People are out spending their hard earned cash on Christmas gifts, Christmas parties, Christmas party outfits and let’s be honest, Christmas booze (never too early for a Baileys in my house).

It’s an expensive season and we have all got used to it. However in recent years and in these tight times of austerity, fiscal cuts and triple-dip recessions, everyone is looking for a way to cut costs, save some cash and not be ripped off by the world at large.

As a thrift advocate, I love a bargain and have often extolled the virtues of cloud computing and hosted exchange as valid ways of businesses saving money. So it was with surprise that I read a recent article in Cloud Times, ‘The Cloud Business Case: Are Expected Cost Savings Realistic?’ in which the writer argued over whether recent findings from various companies suggested that perhaps it wasn’t as cost efficient as some people first thought.

The article argues that, amongst other points, the initial outlay of setting up in business evens out over time. As you continue to be in business you no longer have to stump up the cash on a regular basis and you will save you money in the long-term. Whereas continually paying a regular outgoing subscription to a cloud hosting company, you increase your costs and these costs do not decrease over time.

So let’s do the math. Initial outlays for a company to set up in business without accessing cloud computing must include things like purchasing servers, hardware and software, licences, security and anti-spam filters, plus the biggies like IT staff salaries and training. Not mentioning the simple basic electricity needed to power your super duper quick server.  Now that’s an extensive shopping list even for the most ardent of thrifty advocates.

It seems to me to suggest that cloud computing and a hosted exchange subscription can only save your business money when you compare the costs.  In fact Giacom provide customers with a simple comparison table so you can make your own economic judgments.

Having had a peek myself, it’s fair to say that migrating your business to the Cloud is a serious and justified financial advantage when you do the sums, saving between 77% and 80% in annual costs. And that, my friends, leaves a lot of cash flow for the important things like funding the office Christmas party and perhaps even a cheeky sherry or two beforehand.

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One Response to “Do Organisations Save Money When Moving to the Cloud?”

  1. online business…

    Katie Kennedy – Giacom ThinkCloud…