Cloud Hosting Saves Expenses, New Prospective

Cloud Hosting Saves Expenses, New Prospective


It is well known by now that moving to Cloud Saves Cost for both large and small business alike. Everybody knows the common facts about how Cloud is great and Saves Cost. In fact, we strongly agree to this, so what is the reason for writing this article?


In fact, we have decided to point out some uncommon other Costs reduced and other goals that might be achieved by moving your software infrastructure to the Cloud. These might be simple reasons but it provides additional reasons to move all of your software Systems up to the Cloud.


Cutting down Costs of Electricity

 It might be simple but for companies who run many servers, Moving to the cloud will eliminate the cost of electricity consumed within the servers Area. Not only the Electricity consumed by the servers themselves, but electricity needed to run backup devices, network routers, firewalls and even the air-condition needed to cool the servers room down along with room lights as well.


Cutting down Costs of internet connectivity

 If you run software systems that runs on servers serving multiple users/clients on different geographical locations, then it is critical to have fast speed internet connection with high and stable upload rates as most clients connecting to your in-house servers will most probably consume traffic from the server to the client. This means that internet connections used at the server end must have high upload rate and probably will be required to be a leased line instead of normal internet connection. This means much higher cost than the type of internet connection you need for your employees if you have your systems up into the cloud.


Risk of Physical theft and internal sabotage

 Every corporate have enemies, whether they are competitors, angry customers or unhappy employees inside, Fact is: everybody have enemies especially in business. Did anybody considers the cost of losing a server physically? Based on my actual experience, a few years ago we had a customer who had his company location stormed by burglars. They stole servers, backup drives without even knowing what they contain. The loss was far beyond physical server loss, the data lost during the theft caused the company literally to lose millions.


Cost of getting your software System Down

 There is a cost of having your software system down, this is called: Cost of lost opportunity. Cost of lost opportunity can vary from losing sales while your web portal is down and up to paying penalties due to not meeting your SLA (Service level agreement) since your software is down. In order to increase your software system reliability, you need to make sure you have redundancy. Redundancy in network means more cost per month, redundancy in Storage for data drives means implementing Raid systems. Implementing Raid systems will cost money to acquire, maintain and monitor. These are hidden costs that are covered by migrating your software systems to cloud. In the Cloud, it is already redundant by default in both storage, network and even physical processing power and memory. Such concept in data centers is called clustering “A Cluster of servers is a group of servers working as if they are one server / One Cloud”. Clustering comes for free with all cloud hosting services and the good thing about it that failure in any server within the cluster will not affect the whole cluster availability.


Help Save the environment using clean energy

 It might be strange to think about saving the environment moving to the cloud, but Servers use energy. More processing means more power consumption. Using clean energy (generated from Solar panels, Wind power and/or hydro-generated electricity) is not available for small business to implement. Simply because it has very high start-up cost to implement. 90% of the companies worldwide, cannot afford and do not have easy access to purchase green power. On the contrary most modern data centers relies now in large portion of its consumption on green electricity. In fact Hosting data centers try now to market themselves as green service providers in order to attract more ethical customers. According to that moving your application on the cloud simply means that your business is moving to rely more and more on green energy provider which you cannot access or endure on your own.



 There are many other resources about how moving to cloud save money for different organizations, we just wanted to highlight some other perspective of cutting cost and may be some other reasons to move. It is just an additional more ways of looking at how Cloud computing can cut many costs. Don’t forget that Softex Software House has been developing Cloud Based Arabic ERP as well as Cloud based Travel Software Systems serving hundreds of customers in the last 10 years (specifically since 2004). To know more about Softex Cloud-based Arabic ERP check the link: and to know more about Softex Cloud-based Travel Software please check:

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