How does cloud computing increase a company's profitability?

Most companies that are moving their data and applications to the cloud are managing to reduce costs and increase overall business profitability. And with more cash on hand, managers are being able to increase the number of employees on their team, offer them higher salaries and give them more time to focus on crafting innovative strategies.

This is what a survey conducted by Rackspace Hosting , which included the participation of 1,300 companies based in the UK and the US. Of the total respondents, 88% said that the cloud helped to reduce costs, while 56% said that this technology boosted business profits . In today's post, see how cloud computing can increase your business profit. Check out:

3 ways the cloud can increase business profits

1. Eliminating IT infrastructure investments and expenses

Maintaining an IT infrastructure is something that demands a large amount of financial resources. This is because, in addition to having to buy servers, software and other expensive equipment and bear the costs of cooling, space and electricity, the company also needs to hire highly qualified IT professionals to constantly monitor the infrastructure and carry out preventive maintenance.

But with cloud computing, all these expenses are eliminated, as the company does not need to invest and maintain a local IT infrastructure . According to a survey by IDC , which interviewed companies that use AWS services (Amazon Web Services), they managed to save US$ 131,073 annually related to capital expenses and data center operation when they decided to host their business application in the cloud.

2. Increasing workforce productivity

Companies using cloud computing are also making their employees much more productive, thanks to the agility, scalability and improved performance that this technology brings to their business applications. Analytics and intelligence technologies and mobile work tools are also enabling workers to work better and faster.

IDC points out that companies that host their application in the cloud have seen an increase in the productivity of their workforce . That's because the cloud eliminates stale work and enables employees to better serve customers and address new business opportunities. Five of the companies interviewed earned between $100,000 and $10 million a year in revenue thanks to increased productivity.

3. Reducing application development time

The development and implementation of applications becomes simpler and faster with cloud computing. That's because IT professionals can rely on pre-built computing modules and resources. With this technology, the companies interviewed by IDC were able to deploy applications in less time and make them available quickly to employees, so that business opportunities were not lost.

All of these efficiency gains resulted in savings of $133,389 per application. Application management in the cloud environment is also facilitated. The organizations interviewed were able to manage their applications much more efficiently than in environments hosted on on-premises infrastructure. In addition, employees now have more time to work on new projects and innovate.

Did you see how many different ways the cloud can help your business reduce costs and increase your profitability? Now take the opportunity to learn about our solutions or write your questions or experiences in the comments!