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. The purpose of this post is to highlight the main financial benefits of migrating to cloud-based ERP systems.
Gartner forecasts that the worldwide public cloud market will reach $331 billion in 2022, which is growing 27.5% year over year.
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Financial Benefits of Cloud Migrations
Let's take a closer look at how the organization's financial situation will change with Oracle Cloud Migration.
Reduced Infrastructure Costs
One of the most common reasons organizations migrate to the cloud is to reduce 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.
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 Risk
When you operate your own data centers and servers, you’re forced to purchase more hardware than you need, in the case of any 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.
This increased security reduces your company’s risk of data breach, which is vital because the average data breach costs businesses $3.9 million in 2021, according to IBM.
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 Oracle Cloud Migration solution provider, and has helped more than 100 organizations successfully migrate to the Cloud.
Read the case study and discover how one company saved $900K on their cloud migration journey.
Start reaping the financial benefits of moving to the cloud.