Break down the financial ramifications of switching from physical to cloud security.

Drilling into the numbers before making a big switch is crucial. A large business shift like migrating from on-premises to cloud security requires deep consideration from all angles. Understandably, one of the most common concerns about making the switch to hosted security is the cost of adoption and the long-term financial impact. In this article, we’ll outline a few key considerations to take into account as you calculate the financial implications of migrating to cloud security for your specific business. 

How Much Does Cloud Security Migration Cost?

The beauty of cloud security is that it is extremely customizable. A cloud security solution for a small law firm will look vastly different from a cloud security solution for a multi-campus medical institution, which means the costs will be different as well. This is one of the key benefits of hosted security, but it is also one of the cloud security challenges in terms of calculating costs in advance. 

There is no single number that can encapsulate how much cloud security migration will cost. However, you can take the following details into account in order to understand what the financial implications of cloud security might look like for your business. 

• The volume and complexity of all of the data you need to move to the cloud
• The cloud security provider or security integrator you work with
• Internal staff training and change management protocols
• Potential upgrades to existing infrastructure to ensure compatibility with cloud services
• Compliance costs
• Number of facilities
• Compatibility with your existing systems
• Service and subscription model and level

Every cloud security provider follows a unique structure, offering various tiers to cater to enterprises of every size and type. These details all play a role in how much your migration to cloud security may cost. 

In terms of downtime as the adoption occurs and overall ease of transition, these are some of the aspects that make working with an integrator particularly valuable. Experienced security integrators like Security Control Integrators can help smooth the transition and facilitate an easy, efficient adoption with minimal disruptions. Book a call with our team today! 

Top Financial Concerns

A significant mindset shift has to take place as organizations switch from an on-premises security system to cloud hosted security. At first glance, it’s common to feel that your on-premises system runs without significant monthly costs, while switching to cloud security would require an investment every month. Especially for organizations that have recently replaced hardware or made upgrades to their on-premises system in the last few years, it might feel like a loss to switch to a monthly payment model. In many cases, though, the totals suggest a different reality.

Initial Investment

When you’re used to initial fees requiring a significant portion of your budget — the way they do as you adopt or upgrade on-premises systems — it’s understandable to feel hesitant about taking that on until absolutely necessary. In reality, the initial investment for adopting cloud security is generally minimal, since these services take the form of easy-to-budget monthly payments instead of erratic popup costs and upfront investments. 

Ongoing Cost Comparison

It’s also important to consider the ongoing hidden and indirect costs of on-premises systems in addition to the more obvious factors. These include the real estate costs of the storage space to house physical servers, the cooling equipment for hardware, administrator salaries, lost productivity in cases of downtime, added costs for backup servers, and more. These are all line items that are rolled into one easy-to-budget monthly cost in the case of cloud security. 

Opportunity Cost

Promptly recognizing that even a recently-updated on-premises system may simply be a sunk cost can help your business reap the benefits of added uptime, improved redundancy, and impressive AI features sooner rather than later. In many cases, the benefits far outweigh this sunk cost and the monthly fees that come with a cloud security system. 

Financial Benefits of Cloud Security

Cloud security is a scalable and customizable solution with simpler monthly budgeting. Since cloud solutions usually leverage a subscription-based model, you’ll never pay for more than you need. 

With cloud security, organizations also benefit from the predictable monthly payment structure, eliminating the need for a security department rainy day fund for the next time hardware unexpectedly breaks down or a crucial battery needs replacing. Instead, all of the hardware, licensing, backups and more will be rolled into one monthly service cost. This shift from an endless list of operational expenditures to a budgeted monthly subscription payment can help smooth out cash flow. 

Cloud security solutions are maintained and updated by the service provider, potentially reducing the costs and workload associated with these tasks. This can lead to significant savings in IT labor costs and ensures that security measures are always up to date with the latest threats.

Migrating from on-premises security to cloud security presents complex financial implications. By carefully analyzing initial investments, ongoing costs, scalability, and the benefits and drawbacks of cloud versus on-premises solutions, organizations can make informed decisions that align with their financial and security objectives. Ultimately, the right choice varies for each enterprise, depending on its unique needs, growth trajectory, and the specific financial dynamics of its operation. For help determining the best course of action for your security needs, get in touch with us today.