This blog will provide you with insight into the advantages of transitioning to a cloud file server, essential factors to consider for computing your return on investment (ROI), and a step-by-step procedure for calculating the ROI of migrating to a cloud file server.
Advantages of Transitioning to a Cloud File Server:
Before moving to the computation of ROI, let’s understand the benefits of moving to a cloud file server:
Provides Collaboration capabilities: Cloud file servers enable team members to collaborate efficiently across various teams and departments, regardless of the device they use or the time zone they are in.
Enhances scalability: Cloud file servers are quick to scale to meet the requirements of booming companies without requiring expensive hardware updates.
Security feature: Cloud file servers are carefully designed to provide enhanced security, including end-to-end encryption methods, restricted access to authorised personnel, and regular review of audit logs.
Decreasing costs: Cloud file servers can easily decrease unnecessary expenditures related to IT infra, hardware tools, and maintenance.
Improves mobility: Cloud file servers enable users to access their files from anywhere in the world, on any electronic gadget, and at their convenience.
Important Factors to Keep in Mind for Computing ROI:
While computing ROI of moving to cloud file server, you need to keep in mind the following:
Cost saving factor: You need to ascertain the cost savings related to decreasing the expense of hardware, IT infra and maintenance.
Productivity gains: It is also crucial to ascertain the amount of productivity gains regarding collaboration, increased scalability, etc.
Scalability advantages: Computing scalability advantages with regards to capability of scaling cloud file servers up or down according to the tasks of business.
Advantages of security: Ascertaining security advantages related to high security functionalities, namely monitoring audit logs, providing access controls and encrypting features.
Implementation expenses: Computing implementation expenses related to transitioning to the cloud file server include costs such as training and migration expenses.
Guide to Computing return on investment (ROI):
You must follow these below-mentioned steps to ascertain the figure of ROI:
Ascertain TCO (Total Cost of Ownership): Firstly, it is recommended to compute the TCO (total cost of ownership) of a recent file server infrastructure that involves expenditures related to hardware tools, IT support, etc.
Compute the cost savings: Another step involves computing cost savings related to taking measures to decrease costs of IT support, hardware, and maintenance charges by moving to the cloud file server.
Ascertain the amount of productivity gains: Compute the productivity gains related to collaboration features, ease of scaling, and mobility benefits for transitioning to a cloud file server.
Compute security benefits: In the next step, you need to compute security-related benefits for features such as encrypting files, access controls, and monitoring audit logs by moving to the cloud file server.
Computing scalability benefits: Here, you need to ascertain the advantages you will gain from scalability, which involves the capability to scale infrastructure up or down as per the business's needs by moving to a cloud file server for business.
Ascertaining implementation costs: Compute the implementation expenses associated with switching to a cloud file server. This includes all migration costs, fees for providing staff training, and other related expenses.
Computing ROI (return on investment): Now, you need to compute the ROI by dividing the total benefits figure (including scalability, cost benefits, productivity gains, and security advantages) by the total implementation costs.
Let’s understand this with a case study: Calculating ROI of transitioning to Cloud File Server:
For instance, a mid-sized enterprise with 500 total employees is currently leveraging on-premises file server infrastructure.
So, the present infrastructure expenditure incurred is:
- Hardware cost amounts to $100,000 p.a
- Maintenance costs equal to $50,000 p.a
- IT support cost comes to $ 75,000 p.a
- So, the total cost equals: $225,000 p.a
Now, Cloud file server costs:
- Subscription costs is equal to $50,000 p.a
- Implementation costs is equal to $20,000 (one-time)
- So, total costs: $70,000 p.a
Advantages of transitioning to Cloud File Server for Business:
- Cost savings figure comes to: $155,000 p.a (decrease in hardware tools expense, maintenance expense, and IT support costs)
- Productivity gains figure comes to: $50,000 p.a (enhanced collaboration capabilities as well as mobility)
- Security benefits figure is equal to: $20,000 p.a (high-end security functionalities)
- Scalability benefits figure amounts to: $30,000 p.a (ease of scaling up or down to as per the changing and growing business needs)
- Total benefits figure amounts to: $255,000 per year
Now, the ROI calculation is as follows:
ROI = (Total Benefits figure divided by figure of Total Implementation Costs) x 100
ROI = ($255,000 / $20,000) x 100
Therefore, ROI amounts to 1275%
According to the case study, an enterprise can forecast a 1275% ROI by seamlessly transitioning to a cloud file server for business.
Final Thoughts:
Now that you know the importance of moving to cloud file server along with its effect on the company's ROI, you must aim for Egnyte’s cloud server platform. Backed by AI, it is a highly secured cloud file server business that is diligently designed to enhance the efficiency of your business.
Additionally, determining the return on investment (ROI) of migrating to a cloud file server is crucial in assessing whether leveraging this technology is beneficial for your organization. To calculate your ROI easily, simply follow the guide mentioned earlier.