The Best Way How Cloud Software Companies Can Cut Costs – Without Impacting on Quality

Apr 22,2020 by Admin
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A traditional business has more options to cut costs. Moreover, as a rule, these escape routes are quite simple and predictable. It is always possible to optimize production, switch to cheaper raw materials, reduce the number of workers or outsource specific tasks.

As for the cloud business, not everything is so simple and not so predictable. This is a relatively new, specific and digital business. Moreover, small cloud services are constantly forced to fight with industry giants like Amazon or Azure. The issue of cost reduction can be a critical condition for survival in the market, so in this article, we decided to give you a guide to action.

Start With Your Customers’ Expectations

Before you do any action, it is always necessary to think about how this will affect your customers. If you start to cut costs, does this mean a simultaneous decline in the quality of cloud infrastructure services and the refusal of customers to use them as a result?

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Therefore, the first thing to do is to analyze your marketing component and your market position. Think about what your customers expect from you and what you definitely cannot risk while cutting costs. At this stage, your task is to find such an opportunity which at the same time will reduce costs without compromising your reputation in the eyes of customers.

Assess the Risks

Loss of users and reputation is always the most frightening risk for any business. However, if you have to sacrifice anything to reduce costs, other risks can also be waiting for you around the corner. Try to foresee the largest number of causal relationships.

For example, if you reduce part of your team, can you be sure that someone will not share the technical secrets of development with your competitors? In simple words, you need to find several opportunities that you can implement to reduce costs, provide for the biggest risk associated with this action and develop a strategy for responding to each of the risks.

Analyze and Measure

In order to determine which aspect of your service you need to make more economical, you need clear mathematical and statistical data for each of your products. Most likely, you already know what exactly eats an inadequately large part of your budget, but at the same time is ineffective. You need to look at this item again, and also develop a clear system for measuring results before you start to do anything.

By the way, if you have several cloud products, it makes sense to check each of them to find out if the same area needs cost reduction. In this case, you are likely to be able to apply a single strategy for each of the products.

Try the Reverse Strategy

Sometimes it makes sense not to cut costs, but rather, look for ways to increase profits to cover unforeseen costs. Think about this strategy from the perspective of your business. Perhaps your users are willing to pay more for using your cloud services. The most obvious solution is to raise your subscription fee. However, there are other options.

Try revising your pricing policy and consider the behavior of your users. Do you know how they use your service? Perhaps it makes sense to create something more flexible and personalized, something individual for each or for a group of users, something for which they will want to pay. For example, you can revise your service sets and match them with specific users groups and specific prices.

Set a Common Goal to All Team Members

After you have decided what will be sacrificed in favor of money, it’s time to share this idea with your team. Share and direct it along the desired path of development. In any business, it is important that all team members have a common goal. In this case, this goal is to cut costs.

You may need to brainstorm with your team and find out what everyone thinks about your cost reduction strategy. Perhaps you will immediately lose one of your team members, especially if you decide to cut costs by cutting their wages.

But in any case, you need a collective opinion and understanding of what you need to do next. Write down your action plan and make sure it is understandable to each team member. In addition, authors and editors with the Best Writers Online writing services review website are always able to help you with writing, proofreading, and editing.

Make Sure You Don’t Go in a Vicious Circle

Unfortunately, none of the business strategies, like none of the strategies to reduce costs, gives guarantees that everything will go according to your plan. That is why you need to monitor your results both in the short and long term.

Do not forget that each action has a cause and effect, which means that cost reduction in one area can lead to higher costs on the other hand. Before undertaking anything, think about the maximum possible number of consequences and their impact, as we have already said.

In addition, you need to create a more advanced financial monitoring system in order to control your financial results and compare them with the results preceding the decision to reduce costs.


Less cost with more profit is the main goal of any business. Unfortunately, neither a magic pill nor a universal prescription exists. Too much depends on the specifics of the business and the expectations of your users. The most appropriate strategy is clear planning and competent risk assessment. Moreover, sometimes it is worth abandoning cost reductions in favor of improving the quality and increasing the cost of your cloud managed services.


Gregory is passionate about researching new technologies in both mobile, web and WordPress. Also, he works on Best Writers Online the best writing services reviews. Gregory in love with stories and facts, so Gregory always tries to get the best of both worlds.

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