• Customer Stories

      • XTREME-D

        Find out how XTREME-D was able to meet its objectives and has positioned itself for further growth by partnering with Digital Realty and leveraging PlatformDIGITAL®.

        Keep Reading
      • Telefónica UK

        See how they leveraged PlatformDIGITAL™ Data Hub to localise data aggregation, staging, analytics, streaming and data management to optimise data exchange and maintain data compliance.

        Keep Reading
      • Criteo

        By partnering with a company like Digital Realty, Criteo has somebody who can work with them to ensure they move a long way towards their sustainability goals

        Keep Reading
      • Join Digital

        With increasing demand for a turnkey experience, Join™ helps their customers brings the built and digital worlds together with the essential Network-as-a-Service and IT-as-a-Service offerings for Smart Buildings and Smart Workplaces.

        Keep Reading
      • AIB

        AIB, Inc., a leading data exchange and management firm serving over 1600 automotive customers, sought to diversify their cloud portfolio to realize reduced latency, increased availability, and harden security posture.

        Keep Reading
    • Global Data Insights Survey

      Read the survey

    • Investor Relations

      Digital Realty owns, acquires, develops and operates data centers. The company is focused on providing data center, colocation and interconnection solutions for domestic and international customers.

    • Investor Relations
    • Leadership
— Blog

How Cloud Cuts Costs for IT Departments

Okey Keke, Sr. Solution Architect
August 17, 2017

Businesses turn to new technologies for a variety of reasons. Often, the intention is to be on the cutting edge and stay ahead of the competition. In other cases, the pace of change has accelerated so quickly that the business needs to catch up with the rest of their industry. Generally, those costs are seen as investments that are necessary for future growth.

However, cloud services are unique in the way that they enable future growth in numerous ways, but they also have the capacity to help businesses and IT departments cut costs in the short term. Read on to learn how.

As cloud computing has evolved, two major changes have happened for organizations and their IT expenditures. First, the onset of virtualization means that hardware spend have decreased drastically. Second, the proliferation of cloud and interconnection services means that deploying services/applications is easier than ever and organizations don’t have to spend weeks or months ordering and configuring connectivity to access them. Digital Realty’s Service Exchange, powered by Megaport, is an excellent example of these two factors coming together.

This is an evolution that is very much still in progress. But it’s not hard to see that cloud can make a real impact on organizations and their IT departments. Network World reports that from 2013 to 2017, IT capital spending has dropped from 24% of total IT spending to 18%. Organizations that have adopted a platform like Service Exchange know that they can scale connectivity to the cloud as they need them and enable multicloud connecitivty without having to reinvest in hardware.

A comprehensive total cost of ownership analysis shows the impact that cloud can make on a business’ capital expenses. Beyond the cost of the services themselves, this type of analysis goes more in depth to determine the approximate total cost of service and support over the solution’s useful life. Some of the highest costs of operating your own compute and storage solutions are associated with personnel, mitigating the effects of downtime, and especially buying, installing, and maintaining hardware.

According to the CTO of Rackspace Hosting, John Engates, "the bottom line is cloud saves companies money and increases their profits." It’s not always a straightforward calculation of ROI, but most companies understand that cloud adoption is a transformative investment that enables insights that can spur growth and further differentiate businesses from their competitors. For businesses that are not only concerned with their bottom line today, but more importantly in future-proofing their IT strategies, cloud has become a necessity.

If you would like to learn more about how Digital Realty’s cloud and interconnection services can help your business cut costs and future-proof its IT strategy, click here. Digital Realty’s growing data center footprint currently spans 4 continents and 11 countries, and more than 32 of the world’s most active global metro areas.

Architech image02 2021 12 17 134536 Architech image01 2021 12 17 134535 Architech image03 2021 12 17 134537

Future-Proof Your Digital Deployment

Connect with a Digital Realty Cloud Certified Solution Architect to help build your scalable growth strategy and transform your business.

Connect with Us