Cloud Computing Technology: Strategy to Reduce Operational Cost

Indonesia 4.0

Businesses around the world are always looking for a better strategy to reduce operational costs. With the advancement in technology, an increasing number of industries turn to cloud computing. Cloud computing technology provides the benefit of cutting down on operating business costs and brings the industry to a greater height.

Cloud Computing: What and How Does it Work?

Cloud computing technology focuses on running information technology through remote servers. People use remote servers to connect user devices to specific resources. The information is available via the internet and allows interaction with people from different places in real time.

Three common models of cloud computing used by the business industry today are:

  • Public cloud
    Management is monitored through a provider, and the contracting company can choose from several plan options according to their needs.
  • Private cloud
    The company is responsible for maintaining the cloud provider without hiring a third-party provider.
  • Hybrid cloud
    The combination of public and private clouds enables both parties to share the required applications and information.

cloud computing technology

Cost-cutting Cloud Computing Technology

Cloud computing helps to reduce operating costs in various ways, including:

  • Infrastructure
    Server virtualization using cloud computing eliminates expenses for purchasing and maintenance of physical servers. Cloud solutions provided by reliable providers come with a low monthly fee that will cut down operational costs, and even staff size. It allows people to focus more on business development.
  • Productivity boost
    The entire deployment and integration system between cloud software and services run faster than conventional systems. The system is available anytime and anywhere with an internet connection. It means less waiting time for the employees to do their tasks, which leads to a productivity boost. It even allows for remote work, which reduces transport and electricity costs, among others.
  • Affordable initial investment.
    A business does not have to spend much on the initial investment, when using cloud computing. Cloud solutions are typically available on a monthly or pay-as-you-go basis. The method allows for flexibility in spending and money savings.
  • Data safety and security are critical.
    Losing valuable data is detrimental to any business as it may slow down or set back the production process, thus increasing the risk of bankruptcy. Cloud computing and its backup system, can help to retrieve the latest data and prevent the unthinkable.
  • Broader coverage
    Cloud computing widens the coverage of remote work and it opens the opportunity for businesses to expand their coverage. The same technology allows businesses to access talent from all around the world easily without having to decentralize the workforce. The financial flow could be focused more on the core employees without sacrificing the talent.
  • Business growth
    Cloud computing gives room for the business to grow without having to pay for the extra equipment – since the provider will take responsibility for providing and maintaining everything.

Cloud computing technology helps a great deal in reducing business costs. However, necessary precautions are needed to avoid skyrocketing cloud bills. The IT team needs to decide on capacity planning by choosing the right cloud resource for the workload, limiting data transfer fees to avoid unnecessary data transfers, using cost monitoring tools to track the spending, and running workloads on the cheaper cloud platform. These are the cost optimization practices to support the cost reduction effort by using cloud computing in the first place.

Starting a cloud computing business proves to be very promising due to the increasing demand for cloud providers. The best way to start it is by placing the business in a complete ecosystem which support the business operation. Suryacipta City of Industry and Subang Smartpolitan become safe havens for manufacturing industries located strategically in West Java, Indonesia. The areas are equipped with IoT based infrastructure to support various manufacturing industries, specifically IT and data centers. Both areas also provide free-of-charge investment guidance services from professionalism – named Suryacipta Centre of Information – to guide investors in building their business from pra-investment to operations.

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