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Part 5 of 7 Managing IT Expenses - The Biggest Savings are in the Cloud

Although most business owners feel as if they’ve heard all they’ve ever wanted to know about “the cloud” and more in recent years, the fact remains that the majority aren’t realizing the cost savings they could be. They use the cloud every day, but don’t necessarily understand how it can help their bottom lines in such a profound way.

#5 The Biggest Savings are in the Cloud

There are really two things you have to know about cloud computing as a business owner. The first is that using cloud-based services eliminates the need for a lot of hardware you might have had to buy in the past. Purchasing things like servers for your business can put a huge dent in your budget, to the tune of tens of thousands of dollars at a time. But once you embrace the cloud, you can stop buying them once and for all. Renting monthly packages saves you on those up-front costs, with the added benefit of freeing up space in your office or facility.

The second thing that’s important to note about cloud computing is that it lets you use software and equipment on a monthly subscription basis. This can bring clarity to your budget, and make cash flow management that much easier. As with a managed services agreement, cloud computing takes a lot of the guesswork out of your financial forecasting, turning IT costs from a question mark into a certainty.

Some business owners are still resistant to cloud services because they don’t understand them, or are used to doing things a certain way. But, this is one area where being open to change can really make a big difference on your profit-and-loss reports. When you take away many of your biggest hardware costs, moved to a monthly subscription model, and combine those benefits with increases in performance and security, it’s hard to find a reason not to switch.

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