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Calculating Your Cloud Computing Costs

Before you start to calculate the costs you need to have a look at your requirements

There is so much happening in the Cloud Computing world and everyone seems to want a piece of the cloud. Though more and more users are positive about deploying a cloud solution for their business, they are still unclear as to how much they would need to shell out for it. Many organizations are still reluctant and feel they won't get the expected returns.

But this is not true and Cloud Computing does deliver organizations measurable benefits. Businesses that have deployed Cloud solutions have been talking about how it has helped them save their IT costs and be profitable in such tough times as well. They have achieved good returns from their investments in the Cloud and also have saved a lot.

If any organization or individual needs to ascertain how much it will cost to implement a Cloud solution they can easily do so. The cost of moving to the cloud can be estimated in two forms: i) Cost of migrating and ii) the ongoing costs.

Before you start to calculate the costs you need to have a look at your requirements. What kind of applications you wish to move to the cloud and which business processes you want to migrate. This would help you assess your needs and determine what kind of Cloud solution would be ideal for your organization. Then you can choose a suitable cloud service provider based on your needs. Once you have done this you'll know how much it will cost you to switch over to a Cloud based IT solution for business and later ongoing costs can be calculated easily.

The migration cost is something you would need to consider as well. Although you save equipment costs as you do not have to purchase any hardware you should consider the cost of hardware that you would have to abandon. Your existing IT equipments may remain idle which would cost you, as the money you put in it would not be fully utilized. In case the old hardware needs to be replaced then there won't be any losses.

After you have moved to the cloud you just need to pay for the usage expenses. These would include Storage space, RAM and CPU that you use. Here you only need to pay for the actual amount of resources you use and not what has been allocated to you.

Thus, you can make most of this amazing Cloud computing service and take your business to new heights. You just need to have a reputable Cloud hosting provider and you are good to go. A good Cloud service provider would give you the desired service and better your experience with the Cloud solution and give your organization the competitive edge over others.

More Stories By Eric Brown

Eric's field of interest includes dabbling with Social Media and technology especially Web Hosting & Cloud Computing. He looks after content and Social Media for eUKhost Ltd . You can get in touch with him on Twitter & Google+

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