How Cloud Computing Helps Reduce Infrastructure Costs

Cloud Computing: The market has been going through a series of transformations when we talk about the forms of hosting for the central systems used in the operation of companies.

But do you know the importance of choosing where to host the ERP well? One of the options is to put the ERP in the cloud. By collecting vast amounts and types of internal data, enforcing business processes and controls, and supporting internal controls at a greater capability level than ever, ERP systems are changing the nature of business. But often, the internal infrastructure needed to support the system generates high operating costs.

If your goal is to change this reality and reduce your infrastructure costs, see the details of how taking ERP to the Cloud Computing can generate this result and improve productivity in the IT and business teams.

Infrastructure Impacts On ERP

The internal IT infrastructure to maintain the ERP is based on the hardware and software needed to operate the system. Intangible resources, such as integrated processes, practices and controls, are also required.

In summary, there is a constant demand for these elements when we think about this infrastructure:

• Hardware capabilities: this is what guarantees sufficient processing capacity and storage for the ERP;
• Required software: operating system, browser connection levels, among others;
• Software conflicts: identify possible software incompatibilities;
• Virus protection: devices must be adequately protected against virus attacks, using specific systems for this;
• Access Control: For security reasons, the device must have access control and restrict usage when it automatically reaches the inactivity timeout.

Other Aspects

Do you realize that implementing all these elements significantly impacts any operation? In addition to the financial costs, it is necessary to free up time and teams to maintain this complex infrastructure.

For many companies, this seemed to be the only option. After all, organizational infrastructures play an essential role as they support ERP maintenance.

But to maintain Management of your business transactions, organizational structure, automation, workflow and reporting, all of which will consider the backbone of today’s IT infrastructure, it is possible to migrate to ERP in the cloud. Immediately, your company will have positive impacts: 

• Getting true IT agility ;
• Allowing flexibility in the development of the IT infrastructure;
• Making Management more straightforward on the business side;
• Providing scalability and elasticity.

Cost Savings With Cloud Computing ERP

Everything we saw in the infrastructure part, with ERP migration to the cloud, can translate into cost reduction. All that inner layer will replace by an online service that will support your ERP needs.

The three main differentials that impact the cost reduction provided by the cloud are:

• Reducing the level of lost productivity when there is downtime;
• IT team becoming more efficient, without worrying about infrastructure;
• Maximum use of machines, without costs with idle servers or maintenance.

Even More

According to an IDC survey conducted in conjunction with AWS to capture the impact of this organizational transformation and drive business value, the top average annual cloud benefits per organization are:

• 47% more business productivity: Organizations leverage greater agility and performance using cloud infrastructure. Companies can identify and address business opportunities as they arise with this change. Meanwhile, employees are already benefiting from the speed with which new features are made available;
• 32% more IT team productivity: Support teams are focused on other IT initiatives and business-focused projects. In addition, development teams benefit from simplified, unified cloud environments. The result is more agile development that allows for the delivery of more features in less time, thus increasing the value and productivity of development teams;
• 13% risk mitigation: Organizations reduce disruptions that impact the business by limiting how often employees don’t have access to the applications they need to do their jobs. This impacts revenue because business operations will not disrupt.
• 8% Infrastructure Cost Reduction: Organizations avoid upfront costs to purchase and deploy server, storage, and network infrastructure. In addition, they reduce ongoing costs associated with running IT environments, including licensing, energy and facilities costs.

Organizations that embrace this shift leverage more cost-effective, efficient, reliable and agile IT operations to drive improved business results and work more operationally in their system.

Also Read: Cloud Technology: 5 Essential Benefits Of Its Use For Your Business