Why More SMBs are Turning to the Cloud to Reduce TCO

January 20, 2019

More small and mid-size businesses (SMBs) seem to be taking the initiative to learn more about the benefits of the cloud. Determining why SMBs have this sudden keen interest in the cloud isn’t all that tricky.

If you shouted, “Cost Savings!” in a room full of SMBs, you’d undoubtedly be the center of attention. And it seems as if this is also the motivating factor as to why more SMBs are looking into cloud-based solutions to reduce expenditures.

Although it seems like an oxymoron to recommend investing in new technology to control costs, cloud-based solutions can be leveraged for a greater return on already inevitable operational expenses. By enhancing productivity and overall efficiency, the cloud could help spur business growth and profitability.

Here are few of the reasons more SMBs are opening up to cloud-based solutions…

Containing Costs – This is the big one. Every SMB wants their business to grow but that growth is accompanied by rising costs to maintain safe, reliable, and sustainable business technology.

On-premise solutions are expensive. If you’re paying someone $60K a year to manage and monitor your technology, and most of their day is spent performing routine maintenance tasks or running to the aid of the intern who complains that something is running slow, are you really getting a return on that investment? You can do better and your on-site IT support can do more for you.

The cost for cloud-based solutions have been found to be anywhere from 35% to 50% lower than with on-premise solutions. This is because the cloud can completely eliminate most infrastructure costs such as servers, databases, backup, operating systems, upgrades, migration, physical space, power and cooling, and associated in-house or third party staffing costs.

Greater Flexibility – No doubt you’ve been privy to an office Happy Hour conversation or two about Infrastructure-as-a-Service (Iaas) and Platform-as-a-Service (PaaS). Is that crickets we hear? Okay, well since you’re in the dark, the flexibility of the cloud makes it really attractive to SMBs. IaaS and PaaS are two increasingly popular cloud technologies because of their flexibility when it comes to big data analysis.

IaaS technology is flexible as it allows an as needed rapid deployment of resources. Basically, fast expansion to accommodate growth. SMBs can pay accordingly for this on-demand usage, giving them the ability to access and analyze the kind of big data seen at larger enterprises without having to pay for necessary hardware capacity.

PaaS technology gives SMBs the ability to affordably increase or decrease data storage capacity as needed.

Of course, there must be a need for big data analysis that justifies the use of these technologies. Many SMBs may be just fine using Microsoft Excel for data analysis.

Greater Mobility – Many SMBs are turning to the cloud to provide remote employees with access to communications solutions. Through the cloud, remote workers can use smartphones, laptops, and notebooks to access documents and files for internal and external collaboration.

As you can see, it’s understandable why the cloud is being seen by SMBs as the “great equalizer” to take their business to the next level and stay competitive with even the big dogs despite budget and staffing limitations. It also helps that cloud-monitoring services have simplified the monitoring and management of SMB cloud deployments, alleviating a lot of the fear about migrating to the cloud.