More and more companies are shifting their IT infrastructure to the cloud rather than using servers, a move that can help reap tremendous savings in carbon emissions and energy costs. In fact, a study by the Carbon Disclosure Project (CDP) found that U.S. companies using cloud computing could save $12.3 billion in energy savings and 85.7 million metric tons of CO2 savings a year by 2020. The firms interviewed for the study anticipated reducing costs by as much as 40 to 50 percent.
The study also analyzed the business impact of transferring human resources to the cloud and found that it could achieve payback in less than a year. Beyond reducing their carbon footprint, cloud computing saves companies in other ways like avoiding up-front investments in infrastructure, improving time-to-market and improving automation. Cloud computing offers additional business benefits such as greater flexibility and scalability and easier upgrades.
As a Rackspace white paper points out, the key to achieving the benefits of cloud computing is proper vendor selection. Here’s a look at several factors to consider when choosing a cloud computing vendor:
- Pricing model: The white paper recommends looking for a cloud computing vendor that bills cloud computing infrastructure on an hourly basis, because spikes tend to last only a few hours. Companies would not reap as much savings with a cloud computing vendor that charges by the day rather than the hour. Some cloud computing vendors also charge users a setup fee for provision (and even de-provision, in some cases) to offset their costs, so try to avoid vendors with high setup costs.
- Security and compliance: Whether you’re used on-premise servers or a cloud-based solution, you need to do your due-diligence about the vendor’s security protocol. If your business is subject to standards such as Health Insurance Portability and Accountability Act (HIPAA) or Payment Card Industry Data Security Standard (PCI DSS), you’d want to choose a vendor who complies with those standards.
- Performance: Cloud computing offers a high level of reliability but it’s not infallible. Look for a provider who can offer you a strong Service Level Agreement (SLA) covering factors like host failure and network availability.
- Support: Your in-house IT department may not have the bandwidth to offer around-the-clock support, so find out what level of support you can expect from your vendor. With the global economy, outages at any time of day are inconvenient and cost you money.
Cloud computing has the potential to save your business energy and money, but it’s important to select your cloud computing provider carefully to ensure the right fit for your needs.