CapEx to OpEx – cutting costs with the Cloud

Written by:
by Hyve Management
Date Posted:
3 April 2013

Purchasing and maintaining in-house IT resources is costly for businesses, using considerable amounts of capital expenditure (CapEx) budget.

In such uncertain times, so many businesses are having to tighten their purse strings and focus on their budget allocations. With in-house systems, businesses have to purchase expensive hardware (which becomes redundant over time) at a large upfront cost. The company would then have total control over their infrastructure and would maintain and upgrade it as required.

The cloud is a virtualised solution where businesses ‘rent’ hardware, using operating expenditure (OpEx) to pay a subscription to a cloud provider for their services.

Whilst this may be beneficial in some respects, technology is developing at such a pace that financing regular upgrades would be a huge drain on the IT budget. The cloud offers not only a faster and more reliable service, but it’s also substantially cheaper for businesses. Due to the fact that the Cloud is essentially a ‘rented’ virtual server that is paid for on a subscription basis, it eliminates the cost of purchasing physical hardware.

Our enterprise cloud platform is tailored specifically for businesses. The virtualised servers run on VMWare and use fibre channel drive technology with ‘light speed’ disk access. Businesses can start small and scale upwards as they grow, saving money as it only uses the required CPU, RAM and disk space.

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