Moving to the cloud offers security, flexibility, and scalability for all kinds of businesses. But for CFOs, migration also offers a whole host of cost savings – and a payment structure that allows them to have all of the latest features and tools on-demand: without extensive capital outlay.

Essentially, cloud subscription-based models allow CFOs to move their IT spend from a CAPEX (capital expenses) model to an OPEX (operating expenses) one.

Let’s consider how migrating to the cloud and changing payment plans can be both positive and more cost-effective.

Take The Guesswork Out Of Your Spending

Traditional CAPEX methods of IT purchasing are based on predictions – three to five-year forecasts on business growth and an estimate of the resources required to support this. However, as we’ve seen in both the financial crisis in 2008 and now in 2020 with Covid-19, even the best-laid plans can go awry.

Having cloud systems in place allows IT teams to increase or decrease their requirements in real time. As SaaS providers use subscription models, finance teams can easily calculate the cost of their IT spend per employee. With many people now furloughed, companies can adjust server and user requirements – as well as their overall IT spend by only paying for what they need on a monthly basis.

The ability to rapidly reduce service costs can be a lifeline for businesses that may be struggling in the current climate.

Purchase At The Right Pace

CAPEX models mean that IT systems are paid for outright and then financed over a number of years. Given the pace with which technology moves, many companies find that after just one year their systems are already outdated.

As cloud services are built around the needs of businesses, updates come as standard – without any additional cost. This allows companies to access new and emerging technologies such as machine learning, automation, and IoT services, simply by scaling their needs.

Adjust Capacity To Match Demand

Many business leaders are predicting that the current crisis will inevitably bring about a shift in corporate culture; given how effective remote working is proving for a lot of businesses.

Cloud-based IT is what’s making it possible for everyone to work like this – at a significantly lower margin than the overheads associated with running a large office complete with on-premise servers.

However, any discussion of cost needs to accommodate the human factor – the need for many employees to get a better work-life balance – and the environmental impact. The more people work from home, the greater the reduction of carbon emissions.

All things considered, the immediate costs of cloud migration stack up. And the fact the longer term benefits are positive too, make it a compelling case for any C-suite exec to seriously consider.

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Contact us today and we can begin discussing your needs. We can quickly provide you with a sense of our approach, estimated costs and a top-level timeframe.

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