If you’ve had your ear to the ground the last few years, regardless of your industry, you’ll know that the buzz around cloud adoption is discernible. And for good reason. There are numerous benefits the cloud provides. But does cloud adoption only make sense if it’s a cost-saving?

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Cost Savings vs Cost Management and Predictability.

Cost savings are critical for any IT department. When considering the cloud, organizations are realizing that it is an efficient cost method for managing data, content, and applications in a highly secure environment. Cost savings include areas like hardware, software, networking, storage and security, all while reducing operational and maintenance costs since those are left to the cloud vendor.

Read more: Successfully Migrate to the Cloud.

When considering the key incentives for migrating to the cloud, cost management, reliability, and predictability must also be considered. They, for the most part, can be considered real motivators for making the case to move to the cloud.

Cloud computing can typically be provided on a monthly pay-as-you-go subscription model. The cost of IT operations is better aligned with business strategy and growth projections, and scalable based on usage and/or the applications being supported. Therefore, substantial initial capital expenses are not required and costs can be better predicted and managed.

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Making the Business Case for Change.

The value of the cloud goes well beyond the total cost of ownership (TCO)—the costs associated with migrating to and operating a business in the cloud. And many leading organizations that are experiencing the benefits of the cloud also understand that being in the cloud isn’t all about cost savings.

The cloud’s offerings and pricing models can provide significant improvements across the organization and in areas, many may not expect—increased productivity and operational strength and flexibility.

Read more: Moving to the Cloud: Is Your Legal Tech up to the Mark?

According to a McKinsey digital report, “75% of cloud’s predicted value comes from boosting innovation,” and “cloud promises an average rise in EBITDA of more than 20% across industries.”

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The Value of Moving to the Cloud.

Understanding the true value that the cloud brings to an organization can be a challenge. But realizing financial value is achievable.

Determine what matters most to your organization:

  • What is your cloud ROI?
  • What are your capital and real-time operating costs as a result of downtime and training?
  • How can you decrease your TCO?
  • How can you establish a cloud-first mindset? (Determine your cost of opportunity lost by not adopting the cloud.)
  • How can cloud adoption help transform your IT department from a cost centre to an asset with IT agility?
  • How will your move to the cloud impact your customers?

To remain relevant in an ever-changing global economy, an organization must find ways to be sustainable and future-ready. The cloud, especially in times of dramatic change and disruption (the COVID pandemic), has become a very relevant and necessary technology to remain competitive and resilient. And while your move to the cloud isn’t cheap, you’ll find that when building a business case, cost predictability will make the decision much easier.