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What Are Your Company’s Cloud Costs?
Telecom Technologies
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What Are Your Company’s Cloud Costs?

Extensive data storage, unparalleled collaboration, preventative cybersecurity maintenance; these are just a few of the standard features any business can benefit from a cloud network infrastructure. Cloud-based telecommunication services have emerged as the dominant means to store and protect data for companies of all sizes and industries. In fact, current reports state that cloud data center traffic accounts for approximately 95% of all data center traffic in 2021, up from 88% in 2016.

But as more companies begin to embrace the technological advances of cloud computing, one element to cloud-based solutions remains somewhat murky: costs. Determining your company’s cloud costs depends on a variety of factors ranging from performance and security needs to which cloud storage provider you choose to work with. To get a better understanding of how much you should be spending on cloud computing, let’s break down the general components that play a role in projecting your company’s cloud costs.

Choose Your Cloud Computing Delivery Model

First off, businesses can choose between three different cloud delivery models that are priced on a pay-per-use billing scale. The three cloud service delivery models are:

  • Software as a Service (SaaS): A cloud storage provider rents you cloud-based software applications based on its own cloud network infrastructure, so your company doesn’t need to install its own cloud network infrastructure. This tends to be the most affordable cloud service delivery model because you don’t have to invest in any extensive hardware and payments can be made on a monthly or annual basis.
  • Platform as a Service (PaaS): This option tends to be the middle-ground between the three cloud delivery models, where businesses pay a third-party hosted server or operating system to access cloud-enabled software and applications. Like an SaaS, you won’t have to worry about installing any on-site software and hardware, yet you’ll have more access to higher-performing cloud network infrastructures.
  • Infrastructure as a Service (IaaS): This grants you access to your own cloud network infrastructure, equipping your business with servers, processing power, and extensive data storage. Because of its pay-per-use pricing model, an IaaS offers businesses total control over a cloud network infrastructure and tends to be extremely cost-effective due to its scalability and customizable options.

When it comes to choosing one of these cloud service delivery models, you’ll need to take your usage, storage, and cybersecurity needs into account. This will help you dictate which model best aligns with your performance standards, which you can then move forward on a pay-per-use process that only costs you whatever you wish to get out of your cloud network infrastructure.

Flat-Rate or Pay-Per-Use?

Choosing between a flat-rate or pay-per-use pricing model is another significant factor to consider when assessing your company’s cloud computing costs. While both have their advantages, essentially it all boils down to knowing what’s best for your company’s data storage or cybersecurity needs.

With a flat-rate cloud subscription fee, you’ll know exactly how much you’ll be spending on your cloud service provider, but you might not be getting the best value for your cloud computing budget if you’re not taking full advantage of all the cloud-based services your subscription offers. With pay-per-use pricing models, your company only spends money on however much space or services you’re using. This can ultimately prove more cost-effective, but costs could fluctuate drastically if you’re not carefully monitoring your cloud network infrastructure.

Audit Your Current Network Infrastructure

Knowing how much you’re currently spending on your network infrastructure will also help you evaluate how much you’ll ultimately spend on cloud computing services. This can include everything from software licenses or subscription fees, maintenance contracts, bandwidth usage, server capacity, data storage needs, etc. Adding up all of these network infrastructure costs will allow you to better assess how cloud computing services can decrease or increase your spending moving forward.

Evaluate Your Company’s Cloud-Based Needs

At the end of the day, your company’s cloud costs depend on which specific cloud-based services your business needs to maximize its productivity and efficiency. At Telecom Technologies, our team of IT specialists can evaluate any potential areas of improvement with your current network infrastructure setup, and connect you with the necessary cloud-based solutions or telecommunications equipment that will help your company thrive. Contact us today to learn more about all of our telecommunication services!

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