We all love having the latest, newest and best technology but there’s one small problem: whatever you buy today will be obsolete tomorrow. And with technology’s accelerating rate of change, ‘tomorrow’ comes faster and faster every year.
That’s why ‘as a service’ (aaS) software (and even hardware) offerings are gaining in popularity. More broadly, it’s also why leasing is oftentimes a better option than owning. The costs come out of our operating expenses (OpEx) budget, not capital expenses (CapEx), for faster tax deductions and an end to complicated depreciation calculations.
They also allow you to outsource expertise, specifically technical support. Most services – the most common which include email, accounting, software, and backups – different levels of support so you can tailor a package to your requirements.
Software as a service (SaaS) means lower initial costs – no more buying expensive software packages and worrying about getting the best licencing deal or having licences that you’ve paid for sitting around being unused. You simply sign up and pay for your software on a consumption basis.
Your provider will manage updates and upgrades for you, removing the need for patch management and security fixes. And in some cases you might even want to look at PC or workplace as a service (PCaaS and WaaS) as a way to roll up new hardware and refreshes into a single package.
Cloud backup avoids a common problem in backup infrastructure: adding storage in the primary environment but not matching it with additional capacity to match it in the backup environment. With cloud backup, you pay only for what you need – so as you add storage in the primary environment, your cloud service scales to match it. Your costs will come down because you’re not paying for infrastructure, such as data centers, and your vendor probably has complementary services like replication, redundancy and disaster recovery. So it won’t just save you money – backing up your data on the cloud just might save your business.
It’s easy to see that the cloud is here to stay and, in many cases, its value proposition is irresistible. Many small and medium businesses are already entirely cloud-based and while larger businesses may prefer or need to keep some data and functions in-house (for regulatory, competitive or other reasons), it’s not hard to see a future where the vast majority of business data and transactions are located in a data centre far, far away.