According to a 2022 study, organizations harnessing the power of Amazon Web Services (AWS) Cloud instead of relying on traditional on-premises data centers were able to cut their yearly IT expenditures by 25 percent. This notable finding showcases the substantial cost savings that businesses can realize by embracing the transformative potential of cloud computing.
Small and medium-sized businesses (SMBs) often struggle with limited resources, budget constraints, supply chain issues, and evolving customer expectations. However, with cloud computing, SMBs can overcome these challenges and achieve cost savings while increasing efficiencies.
This blog will explore what cloud computing is and the different advantages SMBs can take advantage of cloud computing to save money on their cloud infrastructure.
Cloud Computing: A Major Game Changer for SMBs
Cloud computing refers to the delivery of computing resources, including servers, storage, databases, networking, software, and analytics, over the internet (“the cloud”). This has proven to be a game-changer when it comes to generating revenue, automating workloads, and reducing costs for SMBs.
Research suggests firms that migrated to the cloud experienced higher rates of productivity and revenue growth. Businesses that adopted cloud technology experienced 2.3 to 6.9 percent higher revenue growth compared to those that did not make the switch over the past decade.
While there are benefits to working with any cloud service provider, AWS stands out for its commitment to helping customers optimize costs beyond the general efficiencies that come with cloud adoption.
Cloud computing, with the support of AWS, has revolutionized the way SMBs operate by enabling them to save costs, increase productivity, and remain competitive in today’s fast-paced business landscape. With the flexibility and cost optimization features of AWS, SMBs can navigate the challenging economic environment and thrive in their respective industries.
Related: Seamless Cloud Migration Strategies for Small and Medium Businesses with AWS
Unlocking Productivity and Revenue Potential with AWS
One of the key advantages for SMBs is the pay-as-you-go pricing model for most AWS cloud services. This model allows businesses to pay only for the specific services they need and for as long as they need them. There are no long-term contracts or complex licensing arrangements, and once businesses stop using individual services, there are no additional costs or termination fees.
This flexible pricing model represents a significant departure from the past, where businesses had to make expensive and risky upfront investments without the ability to test systems and equipment. With the cloud, SMBs can start with small-scale experiments, ensure their viability, and then roll them out across the organization. If something fails, the fixed costs of IT infrastructure are no longer a concern.
AWS is committed to taking cost optimization to the next level for its customers. It achieves this through three key approaches: offering tools that automate the complex task of optimizing cloud spend, leveraging partners like nClouds in the extensive AWS Partner Network, and constantly striving to reduce costs.
Automating Cost Optimization with AWS Tools
Moving to the cloud empowers SMBs to reduce costs while competing with larger and better-resourced competitors. AWS provides automated solutions to ensure that customers do not overspend on cloud resources. Some of these solutions include the following:
- Amazon Simple Storage Service (S3) Intelligent-Tiering: Automates data lifecycle management, storing infrequently accessed data in low-cost storage classes, resulting in $1 billion in storage cost savings since 2018.
- Instance Scheduler: Automates the starting and stopping of instances in Amazon Elastic Compute Cloud and Amazon Relational Database Service, leading to significant reductions in operational costs and eliminating the need for constant resource monitoring.
By automating cloud cost optimization through AWS tools, businesses not only save money but also utilize their spend in a way that delivers efficient and high-value services to their customers. This approach frees up resources and energy to focus on proactive business growth rather than merely keeping up with the competition.
Leveraging the AWS Partner Network
The AWS Partner Network (APN) is a robust ecosystem consisting of more than 100,000 partners. It plays a crucial role in helping customers, particularly SMBs, reduce costs and achieve their goals. nClouds is an example of a Premier Consulting Partner with AWS since 2018 that helps customers experiment, solve technical challenges, and access well-architected tools that drive cost savings.
Contact us today to learn how nClouds can help you make the most of AWS and accelerate your path to success.