# How cloud computing saves businesses money
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-10
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: The Benefits of Cloud Computing for Business Growth
Meta Description: Learn from Michelle Stark, sales and marketing director of Fasthosts, how cloud computing can revolutionise your business with collaboration, scalability,
URL: https://financedigest.com/how-cloud-computing-saves-businesses-moneyhtml

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# ![Michelle Stark, sales and marketing director of domain and server providers, Fasthosts](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/michelle-stark-1736815493539-compressed.jpg)

_By_ **_Michelle Stark,_** _sales and marketing director of_ [_domain and server providers, Fasthosts_](http://www.fasthosts.co.uk) _._

Is your business on the cloud? We’re not referring to cloud nine here, we’re talking about [cloud computing](https://www.fasthosts.co.uk/blog/what-is-cloud-computing-used-for/). In a nutshell, cloud computing is when computing services are delivered by non-localised networks via the internet, using [cloud servers](https://www.fasthosts.co.uk/cloud-servers) rather than on-site ones. That includes databases, software, storage, networking, analytics, and much more.

## **The collaborative aspect of cloud computing**

One [benefit that stands out from using cloud](https://www.financedigest.com/the-benefits-of-adopting-cloud-technology-in-the-finance-industry.html "The benefits of adopting cloud technology in the finance industry") computing is its collaborative nature, which gives incredible flexibility to employees. And with a more globalised world, it allows companies to be more cohesive in projects. Being on the [cloud ensures that data can be accessed securely](https://www.financedigest.com/cloud-security-and-the-department-of-go.html "Cloud security and the ‘department of go’") from anywhere in the world, by anyone and at any time. This system enables users to not be restricted by geography or time zones, so there’s no frustrating access barriers. And when time is money, this is crucial. So whether you’re delivering educational courses, developing a new application, or accessing IT infrastructure from multiple locations, [cloud computing is incredibly useful and offers](https://www.financedigest.com/how-hybrid-cloud-computing-offers-the-best-of-all-worlds.html "How hybrid cloud computing offers the best of all worlds") so much flexibility in keeping business streamlined and cost-effective.

## **[Cloud computing](https://www.financedigest.com/the-value-of-cloud-computing.html "The Value of Cloud Computing") and scalability**

This system certainly isn’t a static one; it has lots of expansive potential, and it’s so important to consider this when investing in new technologies. [Cloud computing](https://www.financedigest.com/tomorrows-world-how-cloud-computing-will-impact-the-financial-services-sector-in-2016.html "TOMORROW’S WORLD: HOW CLOUD COMPUTING WILL IMPACT THE FINANCIAL SERVICES SECTOR IN 2016") can work with your expansion in projects, upgrades, storage, applications etc., and it also allows you to customise set-ups – whether your servers are physical, virtual, or a mix of both. What makes [cloud computing](https://www.financedigest.com/enterprise-training-and-the-future-of-cloud-computing.html "Enterprise Training and the Future of Cloud Computing") scalable also comes down to its multitude of uses. For example, the cloud can help with [game servers](https://www.fasthosts.co.uk/game-server-hosting), where cloud hosting can offer up powerful performance, with plenty of flexibility if you need to scale. Whether you need custom maps and mods, game servers let you play around. Cloud computing is also perfect for developing software that can be scaled as projects grow. As you develop, you can easily save snapshots and restore previous versions.

## **Security and reassurance**

As a [business owner](https://www.financedigest.com/ladbrokes-owner-entain-buys-sports-media-business-365scores.html "Ladbrokes owner Entain buys sports media business 365scores"), the last thing you want is any qualms on security, especially when it comes to data. One of the main drawbacks of physical servers is the unreliability of them during unforeseen disasters, like power outages and natural disasters. If a fire or flood tragically [hits your business](https://www.financedigest.com/julius-baer-2022-profits-fall-as-it-hits-business-cycle-targets.html "Julius Baer 2022 profits fall as it hits business cycle targets"), your physical servers are under serious threat, not to mention, your costs in repairing and replacing them skyrocket. When a server is cloud-based, this concern vanishes. With a non-localised set-up, cloud computing can provide a more secure and reliable solution, with user and device authentication and robust anti-malware defences against [cyber threats](https://www.financedigest.com/cyber-threats-for-finance-organisations-to-watch-in-2023.html "Cyber threats for finance organisations to watch in 2023").

## **Smart investment**

[Cloud computing is just good business](https://www.financedigest.com/7-ways-cloud-technology-can-transform-business-finances.html "7 ways cloud technology can transform business finances"). With physical servers, a lot of [power is needed](https://www.financedigest.com/europe-power-firms-need-1-5-trillion-euros-in-margin-calls-equinor-says.html "Europe power firms need 1.5 trillion euros in margin calls, Equinor says"), and they are susceptible to damage, which means there’s the financial burden of maintenance and repairs. When servers are in the cloud, all maintenance costs fall under the responsibility of the server provider, and the hardware is elsewhere.

The [way in which cloud](https://www.financedigest.com/green-cloud-one-way-your-company-can-commit-to-sustainability.html "Green Cloud: one way your company can commit to sustainability") computing works is also kind of like a pay-as-you-go system. So [businesses only pay for software](https://www.financedigest.com/4-kinds-of-software-your-new-business-needs.html "4 Kinds of Software Your New Business Needs") that they are utilising, and if there’s any software that’s not working for the business, you can cancel when you need to. A lot of [businesses therefore save money](https://www.financedigest.com/how-to-save-money-on-business-tripsabroad.html "How to save money on business trips abroad") from the get-go with cloud solutions, when they can pay for what they need and be more precise with the pay model. If companies go down the route of in-house, then [costs can rise](https://www.financedigest.com/can-cfos-balance-the-books-with-rising-operating-costs.html "Can CFOs balance the books with rising operating costs?") through investing in hardware, software and in the upkeep. So if your capital is constrained, you may want to hop on the cloud.

## **Energy-saving tech**

As well as being more eco-friendly, cloud [technology is a money and energy](https://www.financedigest.com/schneider-and-greenyellow-target-smaller-businesses-with-energy-saving-technology.html "Schneider and GreenYellow target smaller businesses with energy saving technology") saver. With physical, internal servers, there’s a hell of a lot of [energy and electricity that goes into keeping them and all the hardware powered](https://www.financedigest.com/france-strains-to-avert-power-cuts-as-cold-snap-tests-europes-energy-resolve.html "France strains to avert power cuts as cold snap tests Europe’s energy resolve") up. Therefore, cloud computing provides more [energy efficiency as it reduces your power](https://www.financedigest.com/siemens-energy-signs-7-billion-eur-offshore-power-deal-with-tennet.html "Siemens Energy signs 7-billion-eur offshore power deal with TenneT") usage, which obviously drives down those bills.

## **Productivity is increased**

Not only do [businesses save in hardware costs](https://www.financedigest.com/top-5-ways-businesses-can-save-on-energy-costs-in-q4.html "Top 5 Ways Businesses Can Save on Energy Costs in Q4") when switching to cloud solutions, but they also benefit from increased productivity. Cloud software is much faster to implement than the standard installation of hardware. We’re talking hours to get things [set up with cloud computing](https://www.financedigest.com/embracing-cloud-computing-how-and-why-organisations-are-set-to-invest-more-in-cloud-computing-in-2023.html "Embracing Cloud Computing: How and why organisations are set to invest more in cloud computing in 2023") as opposed to weeks or even months for company-wide installations. What does that mean? Your workforce isn’t waiting around too long; they can crack on and [reap the benefits](https://www.financedigest.com/can-finance-reap-the-benefits-of-the-cloud-without-compromise.html "Can finance reap the benefits of the cloud without compromise?") of a more streamlined system quickly.

## **[Businesses using cloud](https://www.financedigest.com/does-the-cloud-benefit-modern-business.html "Does the Cloud Benefit Modern Business?") computing**

It’s worthwhile having a peek into some of the businesses that are on the cloud that are doing incredibly well on it. Global giants such as Netflix, Pinterest, eBay and Apple are all floating along happily. For instance, taking a look at Netflix, this company was grounded in a [business subscription model](https://www.financedigest.com/7-factors-to-consider-before-your-business-moves-to-a-subscription-model.html "7 Factors to Consider Before Your Business Moves to a Subscription Model"), starting out as a DVD-rental service. How far this business has come. Flying high, it’s now producing its very own groundbreaking shows and films, with the power to even [send 80s tunes back into the charts from its global](https://www.financedigest.com/spacex-rocket-sends-first-global-water-survey-mission-into-orbit.html "SpaceX rocket sends first global water survey mission into orbit") hit _Stranger Things._ With a mighty log of accounts – hundreds of millions of global customers – this [site and app needs](https://www.financedigest.com/5-reasons-why-e-commerce-sites-need-a-token-gateway.html "5 reasons why e-commerce sites need a token gateway") a reliable computing system that can handle all that data, activity and hours and hours of streaming. That’s where cloud computing has helped massively, with Netflix being able to move all that data into the cloud, like a breeze.

So whether it’s huge-name companies or smaller enterprises, a whole host of [businesses can reach cloud nine and save](https://www.financedigest.com/5-simple-ways-in-which-your-business-can-save-water.html "5 simple ways in which your business can save water") money with the emergence of new computing technologies that serve to make data handling, transfer and software development so much more efficient. It’s just a case of looking up cloud providers and finding the one that will serve your business just right.


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