Launching a new business is always a costly and risky endeavor. The less capital required at the outset, the more favorable the outcome. One of the most effective ways to reduce costs is to utilize cloud technology. This article will outline how cloud technology can help businesses save money and the benefits it offers to startups.
No capital expenditure
To launch a business, you will need to purchase equipment to organize the IT infrastructure. Purchasing a server is expensive. Furthermore, it is unlikely that you will be able to simply order the necessary hardware and pick it up immediately. In some cases, this process can take weeks or even months. Additionally, for installation, configuration and maintenance, you will require one or more engineers on staff, which incurs an additional cost.
The advantage of a cloud solution is that you eliminate the need to purchase physical hardware. The cost of a cloud solution is based on a fixed monthly fee, which covers the lease for the selected period and the actual resources consumed. The provider’s specialists maintain infrastructure in the cloud, thus eliminating the need for significant upfront investment. The cloud is not inferior to physical equipment in terms of functionality and capabilities. It is also possible to rent other services, such as 1C in the cloud, Microsoft products, business email and much more.
If the startup is successful, you may wish to extend the lease period or purchasing your own equipment. Should the start-up not yield the desired results, it can be easily terminated. However, if you have purchased hardware, it will be more challenging to sell it. Moreover, once it has been in use, the value will be significantly diminished.
Easy scaling
Another disadvantage of buying physical equipment is that it is not always possible to accurately calculate the amount of resources required. If you need to increase capacity, you will have to buy more, which will add cost. If you have overestimated your requirements, then some of the resources will be idle.
Cloud solutions eliminate capacity concerns, ensuring you always have the resources you need. In most cases, you pay only for the resources you actually use. Furthermore, if the business is experiencing growth, the flexibility of cloud solutions allows for immediate scaling. You will be able to expand your computing power, add new users and enhance your functionality without the need for costly hardware or software upgrades.
Rapid project launch
Cloud services enable startups to significantly reduce the time from idea to project realization. The deployment of web applications, databases, cloud storage and other resources can be completed rapidly, without the need for complex installation and customization. This enables faster market entry and the attraction of clients.
Sharing resources between projects
If you have multiple projects within the same business, they can be conveniently split up using cloud-based solutions. The use of different virtual desktops allows employees to differentiate their workspace, store documentation and other files separately.
In addition, it is easy to use cloud resources for the development of a new business line. This will enable you to maintain capacity for your core business while, if necessary, scaling resources. Moreover, if the project is designed for a fixed period, you can simply stop the cloud rental.
The use of cloud services represents a significant strategic choice for startups. Cloud helps businesses to optimize their operations, reduce costs and stimulate innovation, accelerating growth and development of the business.
