Fine Tune Your Business Costs On The Cloud


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Should your business go for the cloud or retain a data center? While these two things may seem like the same thing, there are distinct differences that can help you decide which will be more cost beneficial for your business. The cloud technology allows companies to store important data off site while a data center will keep your data stored within an on-premise hardware system. The data stored in the cloud can be accessed using the internet, while those stored in the data center are connected within your company’s local network.

Cost effective wise, businesses are currently benefiting from using the cloud data storage system. While organizations need to outsource the service from a third party that can provide a cloud data service, companies realize more savings than they would from spending for the maintenance costs required for a data center in-house IT department. Data stored in the cloud use a cloud-based resource that eliminates the need for using IT equipment and a physical data center within the organization’s premises.

Cost effectiveness of a cloud data center

The cloud technology used to be a neophyte in the digital marketing industry and big data experts were still exploring more potential benefits from using the cloud data center solution for business. At the onset, however, the cost effectiveness of the technology becomes apparent among business firms that embraced the cloud data solution for business years ago when the cloud services were first introduced. The Wall Street Journal interviewed a businessman who reported to have saved $7,000 a month from its IT and data storage budget.

The use of a cloud data center also opened a window for small businesses to have more opportunity towards efficiency in their data storage process. Unlike larger firms, small businesses cannot afford in maintaining a costly IT service for backing data for business. The use of cloud data service unburdens small digital marketers from spending in IT costs by using using an off site data center. Digital marketers appear to shift in their investment programs, allotting a budget for cloud data centers instead of a physical data center.

As it appears from business accounting results, many companies are able to reduce the allotment costs for data storage on the cloud. Since the first introduction of the cloud solution for data storage, its adaptation of business firms hiked to 25% in 2012 and it is predicted to reach a hyper growth stage by 2020 as more businesses begin to shift using an internet based data storage while eliminating IT equipment and programs. The majority of companies using cloud data centers are small to medium businesses. By 2020, most businesses will be likely spending more for machineries needed for cloud data. It is estimated that about 19% of the $230 billion funds spent for storage hardware will be spent in favor of a cloud data solution.

Planning the costs for building a cloud data center


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Businesses that are mindful about the operational costs for maintaining expensive IT machineries, hardware and technicians have now opted in using a cloud service as a data storage instead. Using an on-site data center may cost businesses about $10 to $25 million budget a year to maintain an in-house data server operation. This includes spending for expensive hardware and IT employee costs in order to build a data center infrastructure within the local network.

A cloud computing solution, on the other hand, merely requires paying for a third part cloud data center provider with affordable and flexible subscription plans that will meet your business budget and data storage needs. This helps to eliminate the costs incurred for IT equipment and employees to maintain your data warehouse system. Setting aside the drawback on security issues about cloud computing, business corporations and firms are now shifting positive views about cloud data centers. Privacy wise, modern security software resolves the issue, giving digital marketers a better peace of mind about using a secure cloud data center.

If you are planning to use cloud computing, there are costs that you need to spend initially, as well as throughout the process of using a cloud data storage. While data on the cloud appears to be a more cost effective solution than using an in-house data center, you need to know the various cost points involved when moving your data into the cloud where a budget allocation is still required.

Moving data on the cloud costs

Moving and storing large volume of data in the cloud can cost you thousands of dollars. Cloud service providers may change their rates over time and you should be expecting it to grow more expensive in the coming years. But with the growing competitions among cloud service providers, you can likewise expect it not to soar that high. Moving data to a public cloud server is a one time payment that you need to pay for. The monthly subscription will be paid based on the bandwidth subscription that will be appropriate to your business needs. An advantage of using cloud data servers is the flexibility on the costs for your data storage needs. Big business firms with large data volumes are likely to spend more while it is more beneficial for small to medium businesses that cannot afford to maintain the expensive costs for maintaining a local data storage center.

Storage and transfer costs of third party cloud server providers

Third party providers separately charge for transfer and storage fees. The regular rate charged by various providers like Amazon S3 Standard, Amazon Glacier, Amazon Reduced Redundancy, Microsoft Windows Azure, HP Cloud, and Google Cloud Storage for data transfer is on the average of $0.12 per GB. Their monthly storage subscription fees vary and are also subject to change by geographic locations. Major costs are spent for the bandwidth needed for storing data, but some providers may also charge for both upload and download fee.

Additional costs for cloud data server

Not all marketers realize this, but there can be additional costs involved when establishing their own cloud data center aside from the monthly subscription fee for data storage. Providers may charge for cloud data applications and the use of testing software. Additional charges like backup and archive costs may also be collected on top of the regular cloud data service charges. Ask your chosen cloud server provider to disclose other charges and fees that you will likely incur prior to closing a deal and compare the operational costs between a cloud and local data server.

Digital Warriors offer small to business companies the opportunity to make their marketing more cost effective by using our comprehensive services that include IT consulting, marketing analytics, social media marketing, search engine optimization and web design and development. Talk to us now to start growing your business.

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