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Financial Benefits of Cloud Migration to Contemplate in 2024
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Financial Benefits of Cloud Migration to Contemplate in 2024

March 4, 2024
 / 
by 
Iffat Ara Khanam

Around the world, business leaders and IT managers are replacing legacy on-premises technology with flexible, scalable, and cost-effective solutions that reside in the Cloud. While many organizations migrate to the Cloud to accelerate innovation or improve security practices, they need adequate Cloud migration solutions to start their journey to the Cloud faster and at a lower cost. This blog breaks down specific benefits and aspects of the process to consider.

“Gartner forecasts a significant jump in global end-user spending on public cloud services, reaching $678.8 billion in 2024, up from $563.6 billion in 2023.”

Revenues and Profitability for the Main Three Cloud Firms Continue to Climb

  • According to the most recent data by Canalys, Amazon's AWS sales jumped by more than 13% in Q4 2023, while Microsoft's Azure revenue increased by 23%.
  • Following these two Cloud industry titans is Google Cloud, which has witnessed a 26% increase in its business during the fourth quarter of 2023.

Given the significant financial rewards, businesses have no option but to adapt to the Cloud. 

Benefits of Migrating to the Cloud

Let's take a closer look at how the organization's financial situation will change with Cloud migration.

Reduced Infrastructure Costs

One of the most common business benefits of Cloud migration is reducing IT infrastructure costs. In the Cloud, IT managers can easily scale IT resources to their unique business needs and eliminate unnecessary hardware spending on rigid on-premises assets. Cloud migration solution providers can optimize your hardware needs, manage and pay for the server, regardless of demands and workloads. In short, you’ll pay for what you use, and not a cent more.

Minimal Upfront Costs

Organizations don’t have to wait weeks or months for hardware components and installations. Instead, they can lease valuable capabilities directly from Cloud migration solution providers and get to market much quicker.

Zero Maintenance Costs

After migrating the infrastructure to the Cloud, the Cloud migration solution providers assume the responsibility for the uninterrupted and correct functioning of the software. They, alone, must monitor their equipment and networks and provide round-the-clock technical support.

Read the Opkey report, with research from Forrester: Continuous, Automated Testing for Cloud Migrations & Ongoing Maintenance

Improved IT Team Efficiency

When you move your infrastructure to the Cloud, your IT team no longer has to deal with manual server maintenance tasks. Because the maintenance headache is taken by your Cloud migration solution provider, that is usually a much smaller amount than what you pay for your work in-house. Since hardware is vendor-supplied and your data is stored offsite, you don't need a large contingent of in-house IT staff. When servers and other hardware require upgrades or repairs, these tasks fall to the vendors, freeing up your staff.

Reduced Disaster Risks

When you operate your own data centers and servers, you’re forced to purchase more hardware than you need in the case of a disaster. Modern Cloud migration solutions support object-based Cloud storage, which is far more cost-effective at producing backup data in case of an emergency. Additionally, the Cloud provider takes full responsibility for getting the system back up and running in a disaster, so it's no longer your headache.

Reduced Data Security Risks

Cloud providers typically have better security measures than on-premise solutions. Servers are usually located in highly-secure warehouses with expensive security systems, and files that are stored in these servers are encrypted. Additionally, with a Cloud migration solution, you won’t have to worry about forgetting to run a security update; your Cloud service provider will handle that for you.

Energy Costs

Cloud solutions use less electricity than on-premise solutions. When you run your own data center, your servers won't be fully utilized. Idle servers waste energy, which means that regardless of demand, a Cloud migration solution provider can charge you less for energy used than you're spending in your own data center.

Cloud Migration solutions are mainstream today. When properly transitioned and optimized with changing environments, the financial benefits of moving to the Cloud can be realized across all departments of the organization and not just IT, e.g. Departments can convert their "ideas to market": faster finance, faster business, faster R&D, faster human resources, etc.

Opkey is the market’s premier Cloud migration solution provider. We've helped many different types of organizations successfully migrate to the Cloud. Let us help you! 

Case Study: GAP Migrates from Oracle EBS to Oracle Cloud with Opkey's Help; Saves $900K on Testing Costs and Completes Implementation 3 Months Before Deadline.
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