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A Cloud Based Solution brings many economic advantages for the employing company. We will briefly discuss those advantages to facilitate your decision.

5 Economic Advantages of the Cloud Computing In 2020


Min Capital Expenditures (CapEx) on IT Hardware

In a cloud based solution, all the hardware is procured and managed by the Cloud Service Provider (CSP). The cloud tenant does not have to invest in any IT hardware related to the cloud solution. This will greatly reduce capital expenditures and the same resources can be channelized elsewhere.


Billing is purely on usage basis

CSPs bill the cloud tenant on the basis of “Pay as You Use” model. This implies that no fixed or hidden costs are involved. The more you use the cloud solution, the more you pay and vice versa. The good thing about these expenses is that these are all revenue / operational expenses in nature.


Few and lower skill IT staff is sufficient

As all the cloud related hardware is the sole responsibility of the CSP, the cloud tenant will need a very few employees to handle the in-house IT hardware. The other good thing about this solution is that the skill level of IT staff can also be of a very basic level.



No hardware changes for scaling up or down

It is very easy and quick to scale a cloud based solution. When you scale up, no additional IT hardware is required as it is sourced from the CSP. Similarly, when scaling down, no IT related hardware becomes redundant for the cloud tenant. The maximum redundancy will be of the login devices which can be used elsewhere.


Disaster Recovery (DR) site is not required

Disaster-RecoveryMost CSPs offer a Disaster Recovery (DR) and Business Continuity (BC) plan for a small incremental fee. If this solution is also availed, the cloud tenant does not need to undertake the capital and operational expenses of maintaining a fully functional DR and BC site separately.