Cloud-based computing involves the use of shared computing resources in an organization, thereby eliminating the problems associated with the use of use of personal or local computers in an organizational setup. Therefore, a cloud-based system moves organizational services outside the organizational firewall so that the services can be accessed via the web. Consequently, cloud-based computing services enables an organization to share information more efficiently and to relatively a large number of people than would be the case of traditional methods were e employed. Such an s system also allows employees to work on data files and share similar information at the same time, thereby enhancing employee collaboration and organizational efficiency at large. Like other organizations, () company stands to reap numerous benefits by investing in cloud-based computing among them, cutting organizational costs, the establishment of clients and employee relationships, improved exchange of information with clients, and building slash capabilities and sales management. Cloud-based computing and reduction of organizational costs. Research how is that moving an organization IT to the cloud has cause cost reduction and the related increase in organizational profitability. A study of 13000 organizations in the United States and the United Kingdom revealed that 88% of organizations that used cloud-based computing reported a significant reduction in organizational costs. More than half of the organizations that were studied told that the use of cloud-based computing has a direct relationship in improving organizational profitability. 62 % of the organization that was studied also revealed that they saved money due to the use of cloud-based computing a used the saving s to development of other areas in the organization to drive organizational production and efficiency. Four ways through which cloud-based computing help minimize organizational costs are discussed below
Reduction of hardware costs Shafting an organization to the cloud eliminates s the organization's need to purchase and store adware equipment. This need is passed to the vendors that supply the computing services. Not using the hardware equipment helps the organization save on acquisition costs, maintenance costs, energy expenses, and the space for storage. While the vendor may be capable of managing such expenses due to significant economies of scale, company's such s () may have challenges accommodating the cost related to hardware IT equipment with the implication being seen on reducing organization profitability and efficiency. Labor costs Moving organization data cloud base computing services also causes a reduction of organizational data by huge margins. This is because there is a significant reduction for the staff.
- Spring '19
- Thomas Meade