Understanding a Move to the Cloud and Its Impact on ROI
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Loading... - Anne Nielsen
- 03 May 2023
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Cloud migration has been a central factor in today’s digital transformation, enabling new levels of access and storage at lower costs than traditional, physical servers. It’s predicted that within the next five years, 95 percent of all workloads will be on the cloud, according to 74 percent of global IT decision-makers. When exploring migration to cloud-based services, businesses have several options to consider. Factors include upfront costs, the logistics of moving operations from the on-premise organization, and ongoing expenses. Perhaps the most significant challenge is determining the return on investment (ROI) of transitioning to a cloud-based model. It is likely most companies will consider cloud services in the future, and understanding ROI and related expenses of migration is an organizational imperative.
Why it makes sense to migrate to the cloud
Planning to move computing functions from on-premise to a cloud-based provider should occur only after fully understanding the benefits by using metrics that will quantify the ROI. It can be challenging to ensure everyone in an organization from the top down—and from the bottom up—fully understands why a move to the cloud is prudent, especially when the on-premise model seems to work. While there may be a generational factor at play, some employees may not fully comprehend the immediate and long-term benefits of cloud migration.
Cloud providers offer the ability to scale up or down depending on the traffic load to a site. Employees can connect from anywhere via the internet, providing additional hiring options. The scalability of services makes it easier to grow a business exponentially or to acquire other companies since cloud capabilities can expand automatically with that growth. Providers offer enhanced security measures (a cost-saving benefit for businesses that don’t have to hire people to write custom programs) and can minimize costly downtime with disaster recovery solutions. With support from artificial intelligence, many on-premise tasks and routine processes can be automated through the cloud, reducing the risks associated with manual errors while simultaneously improving efficiency. Read More…
