Cloud based software solutions offer a range of cost savings over traditional in house software installations. Powerful software with rich functionality which was once only available to large corporations is now accessible to small businesses. Using this model cost savings can be found in the following areas:
Capital Expenditure & Infrastructure Costs
Traditional software purchases required an initial upfront cost for the software (often with an additional annual licence/support agreement) plus suitable infrastructure such as servers and backup provisions. As cloud based software is hosted remotely off site in large data centres which provide the number crunching power and data back facilities locally’ all that is required are less powerful machines with a browser and connection to the internet with no specialist software installed. With many providers offering free trials the initial expenditure can be significantly reduced and costly mistakes can be avoided by not committing to a solution which you subsequently discover does not meet your requirements.
Scalability & Flexibility
Pay for what you need when you need it. The pricing model for cloud based software tends to be a combination of a per user/functionality basis often with the ability to pay monthly with no tie in. This allows the cost and features to match the size and complexity of the business as it changes overtime.
Integration & Efficiency
Most cloud based software providers offer API’s (application program interface) and add-ons which allow its software to share data and integrate with other software to enable you to create a very efficient system. Many of these add-ons are easy to integrate reducing the need for expensive IT development costs but where these are required the access to well documented API’s significantly reduces the development time and cost when compared to traditional software installations.
With the added advantage of being hosted externally the set-up and deployment can be managed and accessed from any location. New features can be rolled out to all users at all locations, updates and security flaws can be fixed system wide without the need for any input from within the business.
Staffing & Office Costs
Remotely hosting and managing the software reduces the businesses need for specialist in house IT staff. The advantages of integration and data transfer reduced the administrative burden on the business whilst increasing the accuracy of the data. Office costs can be reduced with fewer people required in one location enabling the business to offer remote working to their staff and have the ability to access resources from outside the local area.
Reduce Costs, Increase Productivity and Focus on Delivering your Product/Service
With access to a wide range of powerful cost effective software solutions businesses can reduce their overheads, provide a firm foundation for growth and have access to the information they require to focus on their core product/service.