digital cloud illustration

Do I Really Need to Adopt the Cloud?

You’ve undoubtedly heard about the Cloud by now. It’s being adopted daily by businesses all over the industry. In fact, cloud adoption is at 95% now, and it’s predicted that by 2019, 83% of all data center traffic will be from the cloud, and by 2026, 73% of organization’s IT will be running in the Cloud.

So, why are businesses everywhere making the switch? What are the benefits they’re receiving from storing their data in these external data centers? There are many, such as:

Flexibility

One of the largest benefits that come with storing your data in the Cloud is the extreme flexibility it provides. What do we mean by that? Well, when you switch your data to cloud computing, it becomes stored in these data centers off site, and the way that you access your data is through the internet. You don’t need any onsite equipment anymore, just a device and an internet connection. This means that you can access your information from anywhere, anytime, as long as you have a device and a stable internet connection.

This flexibility will allow you and employees to work from home or abroad, and having all your data centrally located will reduce confusion and improve communication. Did we mention that cloud computing is also scalable? No matter how big you grow, we’ll grow with you.

Convenience and Cost Savings

When you operate off of the Cloud, you don’t have to worry about maintaining your applications anymore. Your IT service provider, such as us here at Diverge IT, will constantly be upgrading and monitoring your applications without you having to ask us.

Cloud computing is also budget friendly. Services are charged at a flat, monthly rate, and this has helped a lot of businesses save money. Here are some stats to prove it:

  • Most organizations have been able to increase revenues by 4–10% in the cloud.
  • 84% of CIOs cut application costs by moving to the cloud.
  • Organizations typically save around 21% annually by adopting cloud computing. 

Security

Remember those data centers we mentioned earlier? They’re highly, highly secure. In fact, 64% of businesses say that the Cloud is actually more secure than older legacy systems. In addition to these highly guarded data centers, your MSP, like us here at Diverge IT, will implement data encryption to even further protect your data.

Another attractive security aspect of cloud computing is its BDR planning. BDR, or backup and disaster recovery, is a plan that every business should have just in case the worst were to happen, such as a natural disaster wiping out your office space, or a theft. If any of those things were to happen, you don’t have to completely despair because your data will be safe in the Cloud. The Cloud offers frequent, automatic backup, 24/7 monitoring, instant file access, and instant data recovery in the event of a data loss. Don’t worry, you’re safe in the Cloud.

Diverge IT Can Take You to the Cloud

With all these benefits that the Cloud brings, it’s no wonder that 95% of cloud users intend to renew their contracts with their providers. At Diverge IT, we’re ready to help you make the switch over. Contact us today to get started!

Hardware as a Service

Tax Benefits of Hardware as a Service

Taxation of business expenses can be a murky and confusing topic for even experienced managers. Tax deductions are intricate, specific to the situation, and sometimes even metered out over a long period of time. When discussing the tax benefits of hardware as a service, the first and most important thing to know is the difference between capital expenditures and operational expenditures, which are two distinctly different types of expense that are taxed (and counted as deductions) in different ways.

Capital expenditures are purchases that carry primarily long-term benefits for a business. Examples of capital expenditures include new buildings, renovations, new and improved computers or production equipment like cameras and video software, and more. They may have some immediate benefits, but the vision behind the purchase is long term.

On the other hand, operational expenditures are the costs associated with the daily operations of a business. These include wages, maintenance, utilities, and pretty much every other normal expenditure that comes into play on a routine basis. Because operational expenditures are limited to immediate benefits, the entire associated tax deduction counts during the current fiscal year. This differs from capital expenditures because the tax deductions for capital expenditures must be drawn out over several years to reflect the long-term nature of the benefits such expenditures provide.

When working with information technology, going it alone racks up a lot of capital expenses. Setting up servers, maintaining storage, and managing hardware that you own (and all the hassles that go along with it like software updates, damage protection and more) will all count as capital expenditures, and can only be deducted from tax obligations incrementally.

Hardware as a service, however, is considered an operational expenditure. Because your business is paying to use hardware owned by a third party and not purchasing the hardware itself, hardware as a service can never be considered a capital expenditure since the benefits would end in the short term if a payment was missed. Unless your company’s needs are so demanding or complex that a third party IT service provider isn’t practical, your business can deduct more from its taxes by taking advantage of hardware as a service.

Besides the surprisingly generous tax benefits, hardware as a service has a number of other notable benefits for your business. First, working with an IT service provider guarantees that the people managing your hardware are professionals familiar with industry standards and all the latest trends. Secondly, it guarantees that specialists are managing your hardware needs around the clock without being on your payroll – in other words, outsourcing IT gives you access to all the perks of in-house IT personnel at a fraction of the cost. Finally, it removes the need to constantly maintenance and update your hardware, since whatever provider you’re working with is already on it.

Hardware as a service is a cost-effective way to help your business punch above its weight and get the most out of the tax code. We’d love to sit down with you and discuss your needs, then determine which of our offerings can give your business the edge you’ve been looking for. Give us a call today to find out more.