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The cloud has revolutionized the way companies operate. While cloud solutions provide many advantages, one of the most significant is the breadth and depth of cost savings.
With cloud solutions, companies can reduce both capital and operational expenses. These solutions allow for better allocation of resources, reduced ongoing costs, and long-term financial flexibility.
How Do Cloud Solutions Reduce Expenses?
Let’s begin by defining cloud services. Cloud solutions can be deployed throughout an organization, enabling employees, supply chain partners and customers to access information and resources.
Cloud solutions let companies store data and applications in a virtual environment, making them available from any desktop or mobile device via a web browser. Among the most common solutions are:

  • Data backup and storage
  • File sharing, allowing for simultaneous access to documents and applications and real-time updates
  • Productivity and collaboration tools, such as Microsoft Office 365, which offers web-based versions of the popular applications suite
  • Specialized software services, including common applications used in your industry

Along with considerable savings, cloud solutions also offer:

  • Rapid scalability to add storage and users seamlessly
  • Higher speed and reliability rates
  • Business continuity and disaster recovery in the event of a cyber attack or natural disaster

The flexibility, functionality and financial savings make cloud solutions the right option for nearly every business.
How Does Scalability Work in the Cloud?
Company growth is a good thing. But with expansion into new market areas or product/services offerings comes added complexity. You need more servers, more computers, and additional capacity. Typically, that means securing the capital, space and IT staff to install, monitor and maintain additional tech. Often capital budgets are set years in advance or require future business projections based on best-guess information.
As a consequence, small- and medium-sized companies are buying more capacity than they need; typically 25 percent to 50 percent of available technology goes unused. That’s a lot of wasted virtual and physical space. Server costs on top of licensing costs a spiral of mounting IT budgets for many companies as the business gets bigger.
In 2017, companies spent $3.5 trillion on IT services, maintenance, hardware and software, a 2.45 percent increase year over year. Those growing expenses are what drive companies to cloud solutions that eliminate the need for capital, space and utility costs. With the cloud, you can add what you need when you need it.
What Types of Cloud Models Are Available from a Financial Perspective? 
There are three basic financial structures for cloud-based IT:

  • Metered, These solutions allow companies to pay on an as-used basis. A company is charged for space, services, storage, and applications used only when they are accessed.
  • Elastic. These cloud options use variable pricing that allows a company to scale up or down as needed.
  • Subscription An ideal solution for small- and medium-sized businesses, subscription cloud services are affordable and delivered at a predictable monthly rate.

Often a cloud package includes components of multiple service types, such as offering elasticity in a subscription plan.
What About Security Cost Savings?
Today’s companies need a comprehensive suite of security tools that cover the network perimeter, devices, and website. Buying all the proactive monitoring, automated anti-malware software and firewall services can be expensive. It’s also a massive undertaking to make sure those services are maintained and updated regularly.
The other concern is recency. You need security tools that are the most relevant and up to date. Tools that are purchased today may well be out of date quickly. A cloud solution provides automated updating and upgrading to new versions and can adopt newer, better tools quickly and seamlessly.
What Can the Cloud Do For Labor Savings?
Your in-house IT staff likely spends a great deal of its time fixing minor issues with hardware and software, maintaining servers and keeping physical infrastructure up to date and compliant. With a managed IT solution, those IT resources can be reallocated to other tasks. You may need fewer IT staff, saving ongoing operational, salary and benefit costs.
What About Liability and Compliance?
Compliance is a major issue for many companies today, with various regulatory requirements needing detailed reporting, monitoring and auditing. This reality is especially pertinent for federal government contractors. When you use a cloud-based managed IT solution, much of that liability burden shifts to your IT provider. While you will remain responsible, the solutions necessary will be deployed by an experienced IT team familiar with your regulatory needs, often at a considerable cost saving.
Where Can I Turn for Cloud Services?
At Kyocera Document Solutions, we offer companies an array of cloud services to store, protect and monitor your technology. To learn more about how our cloud solutions can address your greatest IT needs, contact us today.