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How Can Cloud Computing Reduce Your IT Costs?

10 mins read
written by
Dhoof Mohamed

Cloud computing is one of those terms that business owners hear a lot, but are not quite sure what it means and how they can leverage it. One form of cloud computing is using software as a service (SaaS). This means that you essentially "rent" the service rather than own the hardware and software.

When used appropriately, this form of cloud computing can simplify your IT needs and save you a lot of money on IT Support fees.  One of our San Diego based customers recently chose this route and saved their company thousands of dollars:

This local real estate company with 30 employees used to purchase their customer relationship management (CRM) Software and install it on their own servers, thereby keeping the whole operation in house.  Recently, it was time to upgrade their CRM Software and they saw it as an opportunity to use the SAAS model. Instead of spending $50K on Licensing and $6K on hardware upfront, they chose a SAAS service provider and are paying monthly fees per user.

Because the SaaS provider is responsible for the hardware and keeping the software up-to-date, the real estate company no longer needed an in-house IT team to manage their applications and hardware. Therefore, they were able to outsource their entire IT needs, which saves them thousands of dollars per year. What they are spending today on the combine IT Support and their SaaS application is less than what they were paying for their IT department.

Typically, outsourcing IT support can save a company 30-40% per month. And while outsourcing is not for everyone (sometimes IT is strategic to your business), companies are able to streamline their approach to managing IT and dramatically reduce ongoing support costs.

About Skyriver IT

Skyriver IT is a San Diego IT Service Provider that helps companies make the right IT decisions. We help companies consider all the hidden costs and effort involved in moving to a cloud solution as well as other technology investments.

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