How To Use Cloud Computing to Reduce Operating Costs

December 14, 2020

Can cloud computing reduce your OpEx (operation expenses)? Discover how a cloud service provider can help grow your business with cost-saving and scalability.

If you are a CTO looking to have exponential business growth, what is the first thing that comes to your mind? It’s the obvious- budget! It is the most common equation of any business. You will always want to spend less to achieve a higher profit margin, but on the same note, you can’t compromise on the quality of your service. Cloud computing is the answer to all your worries. Cloud Computing has become a one-stop-solution for all IT operations.

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Even with the pandemic’s negative impact on economic activities, cloud computing will attract over one trillion of investment from different enterprises worldwide, increasing about 4.1 %. The reason behind such popularity is simple, reduction in operation costs. Every organization needs to spend a considerable amount of money on resources to deliver operational capabilities.

With cloud computing, you get to share resources over a vast network across public or private networks of infrastructure. So, the cost of infrastructure reduces, and there is less provisioning. There are endless possibilities with cloud computing, and here we are discussing some of the benefits of cloud computing that help reduce OpEx(Operational expenses). But before that, let’s know the basics of cloud computing.

What is Cloud Computing?

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Cloud computing is a practice of storing or retrieving data over a cloud network of servers rather than a physical hard drive/storage device. Here, the cloud is referred to as the internet, a network provided by different operators to exchange data between heterogeneous systems. For any organization that needs to handle a massive amount of data, cloud computing is an excellent option as it explores vertical scaling of resources.

Now that we have a basic idea about cloud computing, let’s understand some of the benefits of reducing operating expenses.

Infrastructure Costs

Cloud computing can reduce infrastructure costs by a substantial amount. It is the reason why 42% of organizations migrate to cloud services from their legacy systems. Due to virtual servers and data centers, the infrastructure needs to store data or facilitate different features to become redundant.

It is similar to carpooling or hiring a cab. Instead of spending on a car and spending on fuel, taking a taxi can reduce your costs substantially, and that is the same idea behind choosing a cloud service partner.

SaaS Prowess

Often cloud computing is referred to as SaaS or Software as a Service. In this approach, you will only have to subscribe to a software application, and all the functions come as a part of the suite.

So, you don’t have to pay for individual services. Take an example of Hubspot’s marketing software, where you don’t need to subscribe to email marketing, content marketing, and other services individually.

It is the sole reason why SaaS products are surging in demand. The SaaS market is growing at a compound annual growth rate of 9% and is set to reach a staggering $60.36 billion for the forecast period of 2019 to 2023.

Maintenance & Operational Expenses

Cloud computing helps reduce the monthly overhead and reduce expenses on version upgrades. With the legacy system, the transition towards modern architecture has become a costly affair. Cloud computing helps reduce software maintenance costs and cost of version control with the reusability of source codes.

With a cloud service partner, you can create reusable components for your software and applications that reduce the need for repetitive coding on upgrading each version. Apart from coding, cloud partners can also help you establish secure data access and validation systems.

Cloud management and security services across public cloud networks will reach $17.6 billion by the end of 2022. So, a cloud partner can not only help you develop applications remotely without the need for extensive coding but also reduce the demand for separate cybersecurity services.

Better Efficiency & Productivity

With a cloud computing service, the remote capabilities of your business increase tenfold. It means your employees can access applications, data, and systems virtually from anywhere. So, there is a considerable increase in productivity as demographic boundaries are mitigated. Another benefit is the efficiency of systems, as cloud computing can process a larger amount of data than your average physical infrastructure.

Especially with innovative technologies like Artificial intelligence and machine learning, cloud computing has become a necessity. The amount of computing power that these technologies need is not easy to execute on physical IT infrastructures and is costly also.

According to a survey, 72% of companies report that they haven’t created a data culture, and that is where a cloud vendor can come in handy. E2E networks is one such cloud vendor for your business. It offers several different cloud-based solutions for enhancing operational capabilities. These solutions are tailor-made to fit your budget, and yet deliver efficient results.


Cloud computing is the new age advantage over legacy infrastructures. Physical IT infrastructures need more spending and do little to help your business scale. So, why not choose a cloud service partner to reap the benefits of cloud computing? We have discussed a few practical aspects of operating expenses and how cloud computing reduces them. Still, if there is any doubt regarding cloud computing’s efficacy, please contact us.

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