Over the past few years, cloud computing has been gaining considerable ground and is becoming more widespread throughout the business world.  Cloud computing is the definite wave of the IT future for companies of any size, available in three forms – public, private, or hybrid – to fit their needs.


As our professional and personal computing demands have risen with each passing year, there has also been a corresponding increase in energy consumption.  With the on-demand model of this latest technology, cloud computing can provide significant advantages to an organization’s bottom line.  In a recent study, it was found that migrating applications to the cloud could decrease energy consumption by up to 30% for large companies and over 90% for smaller companies.  As more and more companies search for ways to achieve economies of scale, here are 5 reasons to keep in mind:

    1. Energy costs:  A company’s energy costs can be significantly reduced on an annual basis, providing a net benefit over the long term.  This translates to a lower power bill, which greatly impact a company’s operating costs as well.
    1. Hardware costs:  Organizations can provide computing and storage capacity with less hardware (i.e. servers).  A company can consequently reduce its capital expenditures on IT resources.
    1. Operational costs:  With a decreased need for hardware, many organizations have either consolidated their physical data centers or designed new facilities that minimize the use of energy.  As a result, they are able to perform the same tasks via cloud-driven consolidation in data centers.
    1. Start-up costs:  Early stage companies are able to capitalize on the lessened barriers to entry.  With a reduced need to have a company server in place, cloud computing actually facilitates the launch of start-ups as well as the diversity of services they are attempting to deliver.
    1. Performance enhancement:  Overall, with more energy efficient server technology, companies can achieve at least twice or triple the performance for the same amount of power consumption.

While our present use of technology on both professional and personal fronts does indeed consume much power, it is important to note that the surge in cloud technology is actually harnessing the duplicity of data centers that could arise within a company.   In the process, the inherent agility within cloud computing technology is actually proving to be both an energy-saving and cost-saving measure.

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