You may be wondering what the big deal is about cloud computing. There are many benefits from moving to a cloud computing system. If your business has a lot of agents who work in the field and need to share data and resources, then you can derive significant cost reductions from migrating your system to the cloud.
Consider a property management company. It has agents and contractors across the country that visit properties to verify occupancy, make repairs, collect rent and perform a wide variety of other tasks. These agents need to track their activities on a central computer system. If the computer system is housed in the home office and not accessible online, then this company is going to incur significant expenses.
- It needs a large and expensive computer system on site. The maintenance of the servers, other hardware and software can be heavy burdens.
- Often times it requires significant I.T resources to manage these internal systems, or pay for a yearly supplier contract to manage and support the systems.
- Certain companies even maintain a call center to manage its agents in the field because they cannot easily access the information they need to do their jobs.
- Moving the computer system to the cloud solves these difficulties and reduces expenses.
What Is an On-Premise System?
This is the old way of doing things. An on-premise information system relies on a database within the organization that allows various departments to access the information stored on it. This database and the hardware that run it are typically maintained internally by the company and require an IT team to keep it up and running.
There are significant disadvantages associated with an on-premise system:
- There are yearly costs associated with licensing the hardware and software in addition to upgrades and other maintenance costs.
- You own it, therefore, you maintain it.To maintain your on-premise system, you need an IT team to provide the expertise to manage the system.
- There are time lags between data collection and aggregating it into the system thus interrupting business continuity and performance. Agents cannot enter data in real-time.
What Is a Cloud Computing System?
A cloud computing systems move the hardware and software from your website into the cloud, a network of remote servers. The servers, software and data are maintained at remote locations by a third-party company. This information can be accessed over the Internet with any kind of web-enabled device. These kind of systems are ideal for businesses with multiple departments in a variety of locations that need to share information in real-time.
For example, a home care business can have many Health Care Professionals working in the field providing home care services. Using a tablet or mobile device these Health Care Professionals can connect, receive, and update critical patient information via the cloud system. The managing company receives the updated notifications from the field workers in real-time. This is accomplished by leveraging the power of cloud computing.
The key benefit of migrating your information systems to the cloud is cost reduction. This is accomplished in a number of different ways.
- Total Cost of Ownership (TCO) – There are fewer deployment hassles and no heavy maintenance costs. It reduces both the Capital Expenditure along with the Operational Expenditure associated with running your business. There will be cost associated with using a cloud computing system but it will be significantly less than the cost of maintaining your own internal servers and specialized software.
- Lower Entry Costs – With flexible pricing plans you are able to scale your business accordingly. Pricing models for cloud systems do not burden your pocket book. As your enterprise grows you can easily scale up or down, leaving you in control of your business growth.
- Quick to Market – A ready-made cloud platform allows you to leverage the deployment of new cloud or web applications. This type of provisioning significantly reduces deployment complexities and allows a quicker ROI for your web application.
- Very Secure – Your cloud vendor takes care of the infrastructure security for your cloud system.
A cloud computing system reduces costs and increases productivity.
For businesses that have employees out in the field or want to reduce their exposure to on website IT infrastructure (servers, IT personnel) costs, cloud computing is a clear win. If your business is distributed across multiple locations, you may also benefit from a cloud computing solution.
Ultimately moving your data and software to the cloud is a very smart way for your company to significantly decrease your operating costs as well be used as a strategic advantage over your competitors if they are ‘grounded’ using on-premise solutions. You should consider whether this is the right move for your business today!