Episode 24: Commercial benefits of cloud computing
- Embedded IT
- Feb 4, 2025
- 2 min read
Updated: Jan 16
This article is part of our Cloud Computing series, exploring the technology, commercial models, and risks organisations need to understand when adopting cloud services.
Cloud computing offers a range of commercial benefits for organisations looking to modernise their technology procurement approach. This blog explores the financial and operational advantages of using cloud services, focusing on cost, scalability, business continuity, and access to new technologies. The aim is to give procurement and IT teams a practical view of what the cloud can deliver when managed carefully.
This builds on our introduction to cloud computing, which sets the foundation for this topic.
Looking at cloud costs and cash flow
One of the biggest advantages of cloud computing is cost, although it can be a double-edged sword. Cloud services allow organisations to use computing power without spending heavily on hardware or software upfront. Paying by the hour offers flexibility and can support better cash flow.
However, these savings only apply when usage is actively managed. If a cloud server runs all day, every day, it may be more cost-effective to buy hardware outright. The real benefit comes from matching usage to need, ensuring the consumption model works in an organisation’s favour. Effective commercial modelling is essential for understanding how charges apply and whether usage patterns justify cloud or on-premises investment.
Gaining scalability without the infrastructure burden
Cloud platforms also allow organisations to scale up or down rapidly. Instead of buying new servers, users can tap into the large infrastructures cloud providers have already built. This ability to grow quickly, or reduce capacity just as easily, can significantly shorten time to market and reduce the cost of managing fluctuating demand.
Considering business continuity and resilience
Many organisations assume the cloud automatically provides business continuity, but it is not guaranteed. Large providers such as AWS, Azure, and GCP offer highly resilient platforms, yet outages do happen. Their service-level agreements typically guarantee access to virtual servers but do not promise 100% uptime.
To gain true resilience, organisations must design their own fault-tolerant architectures, such as using multiple data centres. When done well, this can be far cheaper than building and maintaining physical infrastructure.
Access to new and innovative technologies
Cloud platforms are constantly investing in new tools and services, giving organisations access to advanced technologies on a pay-per-use model. Experimenting with features that would otherwise require costly hardware becomes far more achievable, allowing teams to innovate at lower cost and lower risk.
Taking advantage of migration incentives
Many cloud providers offer migration assistance or investment programmes to encourage organisations to move their workloads. These incentives can reduce the upfront cost of adoption, although they are designed with long-term usage in mind. It is worth exploring what support is available when reviewing cloud procurement options.
For organisations exploring whether cloud computing is the right commercial fit, get in touch.
