Cloud technology could lower cost per user by 70%

Shifting to cloud technology could save businesses 70% of their IT cost-per-user

October 24, 2012

Shifting to cloud technology could save businesses 70% of their IT cost-per-user, says Jeff Fletcher, co-founder of independent networking services company three6five. “There are significant savings to be realised when businesses shift to cloud technology, due to decreased operational expenditure and capital expenditure. Once businesses realise the savings to be made it will further grow this emerging market segment,” says Fletcher.

Many clients find that their server infrastructure is no longer under warranty and that their current business requirements are not being met by their aging software systems. “This is the perfect opportunity for companies to investigate the cost savings of shifting to online services. Comparing the cost of online applications versus investing in new server hardware and software over a three year period many customers realise the large savings to be had by shifting to cloud technology. One cost comparison we did for a customer showed savings on cost-per-user over a three year period of 70%,” explains Fletcher.

“Fixed hardware costs and software licensing fees form a considerable portion of IT budgets. Add to this higher software support labour costs, annual infrastructure maintenance costs and administration labour costs and you land up with upgrades that could cost three times that of an equivalent online application that can do the same thing,” says Fletcher.

While online cloud solutions also have upfront costs, annual licensing fees and administration labour costs, these are significantly lower than the fixed hardware and software costs of traditional solutions.

“It is well worth it for companies to investigate the savings they could realise by shifting to cloud technology, especially in today’s tough economic climate where cost savings are increasingly important,” Fletcher conludes.

three6five is an independent networking services company based in Johannesburg, South Africa. The company provides the expertise that large companies and Internet Service Providers need to build, improve and manage their IP networks. The teams advanced technical skills are complemented by an extensive heritage in determining both the business and technical requirements for taking commercially successful services to market.