THE CLOUD

FINANCIAL BENEFITS OF THE CLOUD

Applications in the cloud are typically on a month-to-month basis. If I have 10 users of an application, piece of software that costs $1000  to buy, and I put it in the cloud it may cost me $1 a month per user, so I end up paying $10 a month for all my users, or $120 a year for use of my applications, or the opposite of that is to bring it on-premise and spend the $10,000 and bring it in house. So generally speaking the difference in terms of Accounting, the cloud allows the company to amortize the cost over a period of time.

 
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