Economics of Cloud Computing and Paying for What You Use

Cloud computing is all the hype these days. The question that arise while talking about cloud is “whether or not cloud is going to save my business any money?” We, as a well-established cloud service provider, have seen instances where clients have complained about their costs scaling up even after switching to a Cheap Cloud Hosting provider.

After reading this blog you should be able to answer: “Whether or not cloud computing can be useful for my business”, “How much cost am I going to save with cloud computing?” and also to the more important ones like “Should I really switch to a paid cloud?”

Prior to focusing on the economic aspect of cloud let us first talk about what cloud computing is and why there is so much hype about it.

Cloud computing, as it sounds, does not require you to scale high mountains with a laptop on your back. Nor does it demand you to be on an airplane to be able to use cloud effectively. But cloud, rather, is an analogy. It refers to a data storage facility that is easily accessible online.

How Cloud Differs from Dedicated Server

The dedicated servers store all your data in a disk which can be maintained in-house or can be installed in a third party’s so called data centers.

The problem associated with a dedicated servers is that it has a single point of failure. So, if the hardware undergoes breaks down, you run the risk of losing all your data.

To counter this problem it is recommended to frequently back up your data to backup servers, which, consequently, is accompanied by an increase in a company’s expenditure.

Cloud on the other hand stores your data on a shared environment managed by your cloud computing provider. The vendor manages the hardware entirely, leaving all the other controls of your cloud with you.

With a dedicated server you enjoy a physical storage which is specifically allotted to you. Cloud, on the other hand is virtualized and shared storage. There is no specific directory to which your data is fed in cloud so you do not run the risk of losing your data on account of any hardware malfunction.

Why Cloud is growing so popular these days?

Cloud has become a major player of today’s IT market and has garnered deserved attention over the past few years. What follows a cloud is the ease with which data can be stored and shared with other users.

The hassles of configuring your server and managing the storage has been wiped out completely with the new virtualized storage.

A key note on points as to why cloud computing has become a buzz:


The downside of a conventional dedicated server is that scaling up the data storage occupies some of your real estate and requires extensive capital.

With cloud, infrastructure and hardware are never your concern. You can stop worrying about hardware and start focusing on building your business instead.


Dedicated servers require timely and quality maintenance to keep up with the fuss of the hardware.

Cloud computing can be set up instantly through your PC or mobile. Just choose a reliable cloud provider. There are a lot of Cheap Cloud Hosting providers out there. Sign up. If required, pay for the plan that suits you the best and you are good to go.

Setting up storage has never been so easy.

Eased sharing & Editing

The downside of sharing files via email is that it restricts the number of files that can be attached to it. Besides, you run the risk of exceeding the allowed attachment size. Any modifications done by a user will only take place to the file locally saved on his computer. Inorder to convey these modifications to other users, the file will have to be individually mailed to all the other users concerned with the change.

A cloud allots a common storage that can be shared by a number of workstations in an enterprise. Alterations made to the file(s) stored in a Cloud is reflected back to all the users sharing the same cloud storage.

Economics of Cloud- Why it helps saves cost

Reduced Infrastructure Cost

Unlike any other server hosting cloud is a virtualized storage that does not involve any hardware and server installation on user’s part. The procurement cost towards setting up infra and installing storage is thus entirely expelled.

You can therefore turn your capital expenditure into operating expenditure.

Pay for what you use

Just like your gas and electricity connection, in Cloud Server Hosting you only pay for what you use. You can shrink and expand your storage anytime you want.

Need to scale up your cloud due to intense traffic?

Expand your cloud storage.

Too much cloud storage for a relatively less traffic?

Shrink your cloud.

Cloud computing is more cost effective for typical small businesses that need not more than a few servers. For businesses with humongous storage appetite cloud can prove to be more expensive than other conventional storage.

Some organizations have started implementing a mix of cloud and dedicated servers to arrive to a more cost-effective solution.

The effectiveness of Cloud towards cost-saving depends solely on the extent to which your organization intents to use cloud computing?

“Whether or not cloud will save my business any money?” we leave it for you to decipher.

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