How Does Using Cloud Computing Reduce Company Costs?

How does cloud computing reduce costs

December 3, 2020

We are in the midst of a computing revolution on steroids! High performance computing and quantum computers are no longer a myth. Scientists have access to supercomputers and data centers to help them leapfrog years of technological advances in just months. 

Engineers, Scientists, Developers, and Researchers have, by now, seen that cloud computing provides an answer to the ever-constant question of the cost-to-benefit ratio. The core of the value-based service, a business area cloud computing excels at, is the ratio between cost and benefit. If the benefits of cloud computing outweigh the costs, everybody wins. 

It is apparent to those who work in modeling and simulation that cloud computing is here to stay. From sophisticated acoustic modeling to system-level failure analysis, engineers and scientists use cloud computing simulation to develop better-performing products than ever before. The final result of better performing products doesn't mean that computing costs increase.

In this article, we highlight how an engineering firm, for example, can use cloud computing to reduce costs.

Reduce the burden on IT support

  • Desktop support, and the infrastructure it takes to provide desktop support, are areas that cloud computing helps companies reduce costs.  By using cloud computing, companies, such as engineering firms, can:
    • Scale down their internal IT workforce
    • Shift their IT personnel to other company roles
    • IT personnel continue to utilize their skills and provide value to the company
  • Shifting IT personnel's roles allows the engineering firm to stay focused on engineering analysis while still providing high-quality IT service to their analysts. Firms that use computer modeling and simulations in the cloud see a significant decrease in costs of installing, running, and maintaining simulation software

Reduce fixed cost for infrastructure

  • For an engineering firm, a cloud partner can maintain all the hardware and infrastructure needed to stay competitive in the increasingly demanding high-tech area.
  • Computer clusters and data centers require dedicated space and resources to operate.
    • A cloud partner will provide and optimize computing resources for the engineering firm at a lower overhead cost than if having to continuously invest in up-to-date hardware.
  • Working with a cloud computing partner such as Nimbix also allows the engineering firm to utilize internal personnel to take on complex projects instead of configuring hardware and software.

Remote workforce and collaboration

  • Using cloud computing, simulation experts can optimize the output of a distributed team.
    • Cloud computing allows many engineers to collaborate in real-time from anywhere in the world which improves resource efficiency while maintaining a relatively low-cost operation model. 
  • Using a web browser to access simulation software in the cloud is also beneficial as the company will not need a team of IT experts to be on call for hardware or software support, further reducing costs by increasing their experts' efficiency. 

IT personnel shift to retraining and specialization

  • Freeing up specialized resources, such as highly trained computer programmers and IT professionals, from the tedious activities needed to maintain a costly infrastructure and support engineering personnel allows redirection and retraining of valuable IT resources.
    • IT personnel can now help develop applications to optimize internal workflows and deliver projects on time and within budget.
    • In the long run, the cloud partner becomes an essential resource for the engineering firm. 

Increase reliability and eliminate redundancies

  • A cloud partner that maintains its resources, IT support for Linux and Windows programs, data center infrastructure, high-speed connections, and focuses on optimizing its operation will deliver seamless hardware and software performance.
  • Reducing the burden of hardware and software failures allows engineering firms to meet their deadlines and deliver outstanding performance. In time, this results in increased brand recognition, market share, and diversified services to their clients. 
  • Redundancy, alternative hardware that keeps the infrastructure running if the system fails, could be problematic for an engineering firm. 

Cloud providers have multiple data centers to protect your data and ensure your business's continuous operation and therefore minimize the cost for the engineering firm.

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Barriers to entry into computer simulation and analysis services for start-up firms are now lower than ever, partly due to the cost-cutting benefits that cloud computing offers. 

While the above list is not exhaustive, one can see that cloud computing offers many advantages to both the private and public sectors. Specialization, innovation, and focus on core competencies should be the priority of a technology corporation. Concentrating more on these aspects of the business ensures short and long-term sustainable growth and helps companies develop better-performing products and services with a more significant impact on their bottom line.

In summary, cloud computing reduces costs by:

  • Reducing the need for IT support
  • Reducing or eliminating the need for infrastructure
  • Allowing for a remote workforce and collaboration
  • Shifting IT’s focus to specialization and retraining
  • Increasing reliability and eliminating redundancies

For companies not yet ready to entirely shift to cloud computing, running an HPC Platform such as JARVICE™ XE in their data center is a great option. This option brings industry-leading Supercomputing Cloud technology into a company’s data center, supports advanced computing workflows, and allows users to burst to the public cloud for additional resources easily. JARVICE XE delivers accelerated applications and workflows that take advantage of diverse infrastructure, including InfiniBand, GPUs, and FPGAs on dedicated Kubernetes infrastructure.