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Gartner’s IT Budget report shows that healthcare companies often spend nearly 75% of their IT budgets on maintaining internal systems. Companies in all sectors often get caught up in the upfront price of software and fail to realize the total cost of ownership (support, additional hardware, etc.). Cloud services allow you to pay for the resource usage you need while taking advantage of scale and reliability, two things that most companies can’t afford internally. And there’s no need to update software internally since this is handled automatically.
Most business owners know that spreading the cost of large purchases out over time is more beneficial in the long run since a budget can be spent appropriately on marketing and other needs for company growth. Cloud services operate on a subscription model, where your cost is based on usage over time, preventing you from spending all of your budget at once.
For more examples of how the cloud has saved companies (and even entire states) a lot of money, see Rackspace’s 2016 white paper “The Business Value of Cloud-Enabled Managed Hosting” and IBM’s 2015 article “United States of Cloud saves states millions of dollars.”