What’s The Cloud?

Not to get overly complicated, the Cloud is simply using the Internet to distribute software or hardware “as a service” to consumers and businesses regardless of location.

Prior to the Cloud, companies would have to purchase expensive servers, routers, switches, and more just to build a basic network for operating their business. 

Furthermore, not only did they have to hire someone to maintain that equipment but they also had to upgrade or more likely replace it every 5 years.   For a small business, that kind of capital investment would often break the bank. With the Cloud, a company can now purchase access to the same equipment for a fraction of the price, not have to worry about the ongoing maintenance, nor the cost of upgrades down the road.

CapEx vs OpEx

Buying versus leasing I.T. infrastructure. How will it affect my business?

There are many angles to consider when making business investments. When we look at capital versus operational expenditures we must take into account tax ramifications, cash-flow implications, cost of financing and operational efficiency and predictability. In most cases, businesses find that OpEx is preferable.

Move To Cloud

You should answer these questions first.

Cloud solutions offer the same financial advantages to any small business as leasing does to any person who drives a car.  For a small business, determining if you should go to the Cloud lies in the answers to these three questions:

  1. How much has been spent on Information Technology over the last seven years?
  2. How long is the warranty on the new equipment being considered?
  3. Will the purchased equipment have any resale value in five years?
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