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Reducing Costs with the Cloud

With more and more businesses migrating to the cloud, people have begun to question just how much the process costs, and if the migration represents true value for money. As a result, there is a misconception that a cloud migration can cause runaway costs.

The primary area of concern is that cloud services are designed to scale to meet surges in capacity. Rather than having a fixed cost to deal with, businesses have to adapt to a variable cost that changes depending on the usage of their software.

While replacing a fixed cost with a variable one can cause uncertainty, this is not a reason to discount a cloud migration. In fact, moving to the cloud and constructing a stable architecture can, and most likely will, save your business money.

Migrating = Saving

One of the main reasons why cloud migrations have become so popular among businesses is that it saves them money. Here’s a few examples of the savings your business will experience by moving to the cloud:

  • No More Data Centres — Running your own data centre is costly and may contribute significantly to the size of your expenditure. By migrating to the cloud, you are no longer required to operate a data centre. The cloud service will take on the responsibility of racking, stacking, and powering servers, leaving you with fewer costs and more time to focus on your business.
  • Pay-As-You-Go — Thanks to their scalability, cloud services make it easy for businesses to purchase additional capacity for specific applications as and when it is required. This flexibility is vital for companies who experience periodic or seasonal rises in the usage of their applications. Without the cloud, your business would have to spend substantial capital to increase capacity for even the shortest period of time. With the cloud, you only pay for what you need for how long you need it.
  • Upgraded Servers — Businesses operating their own servers may have been doing so for many years. In cases such as these, it is not uncommon for the servers to be old and dated. The servers used in the cloud are modern and optimised to offer the best performance possible. This improved efficiency can reduce costs. A 2017 TSO Logic survey stated “merely upgrading systems to the latest generation of servers … would also result in considerable savings.”

Cutting Costs in the Cloud

The savings established during the migration to the cloud do not stop once your applications are set up and operational. In fact, life in the cloud offers businesses further opportunities to save money:

  • Utilise Managed Services — In the cloud, managed services remove the operational burden of maintaining servers for tasks like sending emails or managing databases. Since managed service operate at cloud scale, they can offer a lower cost per transaction or service.
  • Turning Off Unused Resources — For businesses who can predict the hours in which their application will be required, controlling the activity of resources results in huge savings. Studies showed that by turning off resources outside the hours of 8:00 a.m. to 8:00 p.m. Monday to Friday, businesses saved nearly 65% of the cost of deploying non-production workloads.

Bringing Pebble’s Costs Down by 80%

In 2011, Isotoma helped Pebble develop a new version of Fund Manager, converting it from a Windows desktop application to an online SaaS product. Six years later, in 2017, Pebble contacted us to ask if we could help rationalise and improve the management of the service, which was now hosted in AWS. In the intervening years, the software became more popular, but Pebble’s costs were spiralling.

Although Pebble had migrated its service into the cloud, their current architecture was proving costly. Following a thorough review of Pebble’s entire estate, we developed a more suitable architecture that, when implemented, would reduce their AWS bill by more than 80%.

The Cloud Doesn’t Have to Cost

A smart and professional move to the cloud makes your company more efficient, reduces risk, and saves you money. Issues can occur when mistakes are made, and poor decisions can result in increasing costs. But with the assistance of cloud migration experts, you will begin to reap the rewards immediately.

Isotoma is a cloud consultancy firm that specialises in helping businesses migrate to the cloud. We would love to help your company discover all the benefits of the cloud. So, if you’re interested to learn how the cloud can help you, get in touch with us today.