Experts project global information technology spending to reach $4.45 trillion this 2022. Of that amount, nearly $1.29 trillion would go toward the IT service sector. That includes IT consultation, managed IT, and cloud migration services.
Cloud migration, in turn, is a chief reason businesses seek IT consultation services. Likewise, it’s the first step to outsourcing IT needs to a managed IT service provider.
But why would you even want to consider migrating your business’s digital assets to the cloud? How does it benefit your firm?
In this guide, we’ve listed the top ways that cloud migration can help save your business time and money. So, read on to discover more about these benefits and why it makes sense to move to the cloud.
More Affordable Initial Capital Investment
Cloud migration as a service can be a one-time deployment of your data and apps to the cloud. How long it takes depends on the data size; for small businesses, it can be a day up to two weeks.
Migration services alone for small-scale projects can cost $1,000 upwards. After that, you may only have to pay a few hundred dollars for your chosen cloud computing services.
Cloud solutions are usually available in a pay-as-you-go or pay-as-you-use pricing models. That means you only pay for the software you need and save money on those you don’t utilize.
Cloud services also reduce the costs of contracts that lock you in for long periods. They do so by letting you downscale or cancel your service anytime. However, you can easily upscale your subscription if your resource demands increase.
Reduce IT Hardware Costs
According to online estimates, database servers can cost anywhere from $5,000 to $20,000. For that price, you can get about five years of service life out of the hardware. Don’t forget to account for the hundreds of dollars needed for its maintenance.
You can expect to spend that kind of money if you choose to keep your business database in-house. However, don’t forget to consider the cost of hiring an IT professional. In the U.S., an IT support specialist makes an annual average salary of $54,023.
Suppose you buy a database server worth $5,000 with a $1,000 life-long maintenance cost. Let’s also say you hire an IT specialist for $50,000. Within five years, all that would cost you $256,000, or about $4,267 monthly.
As mentioned above, it can cost $1,000 upwards to migrate to the cloud. But after that, you only have to pay several hundred dollars monthly for one server.
Reputable migration service providers may even include local IT support in their plans. They may also provide managed IT services that let you outsource all your IT needs.
Migration to cloud services also reduces your hardware repair and replacement costs. Instead of you shouldering these expenses, the cloud service provider does. It’s their equipment, after all, so its upkeep is their responsibility.
IT downtime is when a part of your IT infrastructure can’t perform its primary functions. It can cause temporary software unavailability or inability of hardware to operate. It can affect a single application, device, server, or, worse, the entire network.
It’s no wonder downtimes can lead to massive productivity and profit losses. Some recent estimates place their average cost at $1,410 per minute. While it’s lower for small firms, losses hit them more brutally, as they already have lower profits.
Human errors, equipment failure, outages, and ongoing maintenance can cause IT downtimes. The first three result in unplanned downtimes, while the last classifies as planned.
The risk of unplanned downtimes is higher in businesses with in-house IT infrastructures. That’s especially true for firms without a dedicated IT team monitoring it at all times. If such applies to your business, consider enlisting cloud migration consulting services.
Remember: Once you migrate to the cloud, your service provider takes over maintenance. From there, it mitigates downtimes with constant monitoring, prompt repairs, and timely updates. It also minimizes issues by using multiple cloud regions and solid security technologies.
Shrink Your Energy Bills
The U.S. commercial sector paid an average electricity price of 11.27 cents per kilowatt-hour (kWh) in 2021. This 2022, experts forecast that rate to jump to 12.21 cents, an increase of 0.94 cents. They also project it to increase further to 12.53 cents by 2023.
So this year, a small business that consumes 3,000 kWh monthly could have an average electricity bill of $366.30. That’s an average annual total of $4,395.60 for electricity alone.
IT equipment, being electric, contributes to those high energy bills. While you can power off computers and other devices, you can’t unplug servers. Otherwise, your company’s digital assets will be inaccessible online.
If you and your employees work outside the office, you won’t be able to access your system online. Likewise, customers can’t visit your site or access their online accounts with you.
However, if you migrate your data to the cloud, you, your employees, and your clients can access it anytime. That’s because, after the migration, your data sits in a cloud server somewhere else.
So, you can reduce the number of electricity-using hardware you use at the office. That then helps you minimize your electricity consumption, saving you on energy bills.
Increase Profits From Improved Productivity
In September 2021, over 4 million Americans quit their jobs. That spurred many more to consider resigning from their current posts.
Among the most common reasons cited was frustration with technology. These include problematic and outdated desktops, laptops, and networks. The inability to work outside the office because of legacy technology is another.
It’s so aggravating to use failing devices because it impairs productivity. Think about it; if your computer lags so much you can’t do any work, you might pull your hair out in frustration.
Frustration is a natural emotion but can contribute to stress build-up over time. Chronic stress, in turn, can lead to health woes like heart disease and high blood pressure.
So, it’s no wonder that many frustrated and stressed employees end up resigning.
If your company’s tech makes your employees feel that way, migrating to the cloud may help. It can boost productivity by providing access anywhere, such as from home or in the tropics. All users need is an internet-connected device and a web browser.
Since migrating to the cloud is cheaper, you can use some of the money you save for computer upgrades. That may appease employees who feel stressed due to outdated desktops or laptops. You may also want to give them company laptops to let them work anywhere.
Minimize Customer Losses
Whenever you experience IT downtime, you risk being unable to service your clients. For example, if your apps and data don’t work, you can’t perform the work your customers pay you to do. Likewise, if your network or server goes down, your website may do, too, so clients can’t visit it either.
Consider that people will likely abandon web pages if they don’t load within two to three seconds. So if your website is inaccessible, even for just a few seconds, you stand to lose all those visitors.
From the perspective of site visitors, non-loading pages are enough to dissatisfy them. Unfortunately, dissatisfaction is a leading cause of client loss or attrition. Customers are also unlikely to recommend businesses that make them feel unhappy.
Delays in project completion can also cause customer dissatisfaction or even attrition. Delays that cause your clients to lose money can also put you at risk of legal complaints. That can result in irreparable damage to your business’s reputation.
You can minimize those problems by migrating your essential apps and data to the cloud. That way, you can access them anytime, even if your business’s network goes down or fails. You can also access them using other devices if your computer breaks down.
Save on New Customer Acquisition Costs
A recent survey looked at how losing primary clients impact business revenues. It discovered that, for 82% of business owners who lost their top customers, a 48% revenue loss followed. It also found that nearly 14% of firms lost between 50% and 59%, and over 20% lost 60% to 79% of their total revenue.
You may think losing a customer due to IT-related reasons is okay, as you can replace them with new ones. Of course, you can, but it still means you lost potential profits from their repeat business. You also have to spend more time and money attracting new customers.
New customer acquisitions are also several times more expensive than retaining existing clients. That’s why you should aim to keep as many current customers as possible so you can spend less on gaining new ones. Moving to the cloud to have a more reliable uptime rate can help you achieve that goal.
Consider Investing in Cloud Migration Services
Now you know that there are over half a dozen and thousands of dollars worth of reasons to move to the cloud. From saving on hardware costs to boosting profits, migrating to the cloud can help with all that.
So, why not consider investing in cloud migration services as soon as possible? The sooner you do, the sooner you can reap those cost-cutting, profit-increasing perks.
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