How can cloud computing save money?
Cloud computing services save money by offering businesses access to more versatile and scalable IT services. This allows clients to choose specific service levels according to their needs, rather than buying or building out an IT architecture because of a temporary demand.
Save on Hardware Costs with Cloud Services
One of the biggest ways that cloud computing saves businesses money is by replacing the traditional system of adding hardware to server rooms. Instead of actually purchasing expensive hardware and installing it on-site, businesses can simply order up data use or storage services through the cloud and pay temporary access fees. This revolutionary model has spawned terms like software as a service (SaaS) and platform as a service (PaaS), where vendors tout the convenience and cost efficiency of these kinds of arrangements.
Read also: Top Tips from Experts for Cloud Business Strategies
On-Demand Cloud Services
Another big component of cost saving with cloud computing services relates to what’s called "on-demand service," which is supported by cloud principles like rapid elasticity. Because many cloud computing systems serve multiple tenants or clients, they can add or subtract resources from a client account quickly and easily, without a lot of cost. That means that as soon as a company doesn’t need part of its existing IP service, that company can drop that component of service and stop paying for it right away. A detailed service-level agreement (SLA) can support these kinds of options where service buyers can "turn on a dime" to save money and resources.
In addition to the above, cloud computing saves money when it enables more efficient or more effective operations. Having valuable data on hand at the right time can save money by eliminating the need for expensive travel, streamlining labor-intensive networking tasks, or helping leaders to make quick decisions about business operations. All of these can be part of how modern cloud computing services pay for themselves and more over time.
Tags
Written by Techopedia Staff

At Techopedia, we aim to provide insight and inspiration to IT professionals, technology decision-makers and anyone else who is proud to be called a geek. From defining complex tech jargon in our dictionary, to exploring the latest trend in our articles or providing in-depth coverage of a topic in our tutorials, our goal is to help you better understand technology - and, we hope, make better decisions as a result.
More Q&As from our experts
- How can companies tally up cloud costs for multi-cloud or complex cloud systems?
- What does the mobile network state mean?
- With more big data solutions moving to the cloud, how will that impact network performance and security?
Related Terms
- Cloud Computing
- Server Room
- Software as a Service
- Platform as a Service
- On-Demand Service
- Rapid Elasticity
- Service Level Agreement
- Cloud Computing
- Platform as a Service
- Distributed Computing System
Related Articles

Don't Mess This Up: How to Implement Cloud Computing

Money Laundering, the Internet Way

How Cloud Hosting Costs Can Creep Up on Unsuspecting Companies

Cloud Evolution: How We See and Use the Cloud Has Changed
Tech moves fast! Stay ahead of the curve with Techopedia!
Join nearly 200,000 subscribers who receive actionable tech insights from Techopedia.
- The CIO Guide to Information Security
- Robotic Process Automation: What You Need to Know
- Data Governance Is Everyone's Business
- Key Applications for AI in the Supply Chain
- Service Mesh for Mere Mortals - Free 100+ page eBook
- Do You Need a Head of Remote?
- Web Data Collection in 2022 - Everything you need to know