Over the Next 2 Years, 78% of On-Prem IT Professionals Are Headed to the Cloud

At Bloomip, we could list a million cloud migration benefits (but that would make for an unwieldy article). We’ve helped many clients move from on-prem to the cloud, or take advantage of hybrid cloud solutions. We can narrow down the significant cost benefits of migration to about 10.

On-prem IT infrastructure is still popular in several industries, including manufacturing, shipping/maritime, life sciences or financial. However, in a 2022 survey of 1,600 IT professionals, 51% revealed:

“They were planning to close all of their on-prem data centers in the next 24 months, and 27% said they would eliminate at least some of their facilities – all in favor of cloud computing.”

That’s 78% of IT professionals who are planning a move to the cloud or hybrid cloud. These decisions aren’t based on whims or trends. Cloud migration benefits are significant, and here are 10 cost-related benefits.

10 Ways to Save When Migrating to the Cloud 

1. No replacing aging hardware
2. No worries about outdated hardware
3. Scale resources up or down instantly
4. No need for large, on-site staff
5. Geographic expansion is easy and efficient
6. Grow your storage space as you need it 
7. Turn testing environments on and off as needed
8. Easily downsize if you suddenly need to
9. Hybrid cloud allows you to move into the cloud gradually
10. Enjoy discounts from cloud providers when they find themselves with extra resources

1. Cloud Migrations Benefits to Cost: Aging Hardware

Your on-prem hardware is aging. Ultimately, you will have to replace hard drives, power supplies and whole units. On-site staff must be available to perform these replacements. Replacements must be purchased, and warranty contracts must be maintained.

2. Cloud Migrations Benefits to Cost: Outdated Hardware

Hardware purchased last year already lacks features of hardware made today. This could limit a new software suite or open a security vulnerability tomorrow. Upgrading hardware in the cloud requires a few minutes. You haven't lost the cost of investment on your old hardware, you do not need to unrack the old server, erase data by compliance standards, and pay to store or recycle old hardware.

3. Cloud Migrations Benefits to Cost: Instant Scaling

Your current on-site facility must at all times be capable of peak expected performance, even if that peak just happens twice a year. The extra hardware must be already purchased and in place. In the cloud, the extra performance can be cued when you need it, so you’re not paying for what you don’t need.

4. Cloud Migrations Benefits to Cost: Staffing

In the cloud, there is no need for a large on-site staff. You do not need to maintain a local staff to service hardware.

5. Cloud Migrations Benefits to Cost: Geographic Expansion

With on-prem, if you choose to expand into a new area to service your customer base, you’ll face finding a physical data center closer to that area, purchasing a new entire infrastructure and having a team unpack and provision that hardware, along with travel expenses.

6. Cloud Migrations Benefits to Cost: Storage Space

Storage needs seem to always grow and never shrink. The longer your business is active, the more storage you need to purchase, and find space for. And you always must purchase what you’ll need one, two, or three years from now. In the cloud, storage is virtually limitless, and can be expanded in a few clicks as you need it.

7. Cloud Migrations Benefits to Cost: Testing Environment

As above, if you need a temporary testing environment in the cloud, there is no need to purchase new hardware that you would only be using for a short period. Only pay for what you need and what you are using.

8. Cloud Migrations Benefits to Cost: Easy to Downsize

Let’s say your DVD rental company is not what it used to be- you need to downsize. In the cloud, this represents a cost savings and is only a few clicks away. As there was no large upfront investment, you haven’t lost the initial cost of purchasing that hardware.

9. Cloud Migrations Benefits to Cost: Hybrid Cloud

Like what you have? You don’t have to throw away your current stack to expand into the cloud. Many companies are hybrid cloud, with certain portions of their business in the cloud, and certain portions at their faithful on-premises location. You can gradually migrate services as needed, and that saves money, especially if your hardware is new and 100% paid for already.

10. Cloud Migrations Benefits to Cost: Discounts

No one likes paying full price for anything. Cloud providers lose money on unused resources, and many businesses partner with distributors who can save you money when you purchase cloud services.

If you’re looking to take advantage of these cloud migration benefits, it’s also important to understand that the cloud migration process is only the beginning. IT professionals new to the cloud should consider engaging a managed service provider like Bloomip.

Visit our Cloud Migration Resources page to learn more, or contact us to clear the fog from the cloud for your organization.