Apart from the technical benefits of the cloud ecosystem for any organization, It’s the cost that drives the CxOs for the decision making.There are many pieces to the Cost when it comes to arriving at full financial benefits of Cloud.
The very first advantage that you get after immediately moving to the cloud is that you don’t have to lay the capital expenses for hardware or infrastructure before the actual demand.Since no matter how good is your guess on the capacity, it’s not just right and will get into the well-known situation of under or overestimation.
In case of under-estimation, your infrastructure will not have the required horsepower to smoothly run the business applications resulting in poor customer experience, and on the contrary, in case of over-estimation you end up wasting money and valuable resources.
And the cycle goes on and on.
The on-demand and elastic nature of the cloud enable the infrastructure to align with the capacity demand and you pay only for what you use instead of getting trapped always into the guesswork.In essence, you convert your capital expenses into variable expenses.And it’s not just that, since the cloud providers run the infrastructure on the massive scale, it passes to the customers in form of lower pricing giving them a cost-benefit up to 70-80% depending upon the approach.