Capital and Operational Cost Savings with a Cloud Solution

High_above_the_Cloud_the_Sun_Stays_the_SameYou’ve probably heard a lot about the “Cloud” and how more cities, schools, and government agencies are using it because of reliability, data backup benefits, and cost.  But what’s the bottom line? In other words, what’s the total cost of ownership (TCO)?  Is it too good to be true, or are there true, tangible cost savings to be had by converting to Cloud?

To understand the true savings benefits, we must breakdown the costs into two categories.  Attention accountants!  This one’s for you: Capital versus Operational Savings.

Capital Cost Savings

On the capital side, there is a variety of savings to be had because of the cost of software and upgrades. For example, cloud conversion can save offices money because:

  • The Cloud is by definition “infrastructure as a service”; there is less software to buy, and no access licenses, Windows servers, applications, VPN’s (for remote access), database servers, etc. These become rather obsolete with a Cloud-based solution.
  • Software upgrades are handled via the Cloud, so updates can happen immediately and without the assistance of IT people downloading new upgrades on each individual’s computer.
  • In addition, Cloud applications require no server hardware, network storage, backup systems, recovery systems, power or cooling systems, and the storage spaces, or utilities required to store and maintain them.
  • Finally, with no physical software downloads or hardware replacement, there is no upgrade and replacement costs.

Operational Cost Savings

On the operational side, there are many IT savings to be had by converting to Cloud. For example:

  • Less maintenance for upgrades and backup means fewer IT operational costs.
  • With the Cloud, the cost of employing and deploying IT staff for cloud-related tasks is reduced. The cost of operating and maintaining traditional infrastructure is often understated.  When you use a Cloud system, the vendor takes on the costs associated with running, maintaining, and installing the applications, eliminating the demand on an IT staff.
  • Support costs are also reduced because issues are addressed by the vendor, and not the IT department.
  • Finally, maintenance and operational costs are reduced because when updates, installs, upgrades, and new versions can be installed remotely, and with the assistance of the vendor.

A final piece to consider when determining the TCO of a Cloud solution is the time, money, and effort that will be saved by opting for a solution that is more fully automated, integrated, and flexible.  With Cloud, you are not confined to a physical location to access your software and data; you gain the benefits and freedom of having a system that is accessible practically anywhere, anytime, and from any computer. Gone are the days of being chained to your office desk in order to get your office work done.

Black Mountain Software now offers a robust Cloud solution.  If you would like more information about using your Black Mountain software on the Cloud, contact our Sales team at 800-353-8829.

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