The surge of cloud computing is propelling the rapid growth of data center utilization and public cloud platforms. With more and more data being migrated to cloud environments, companies are seeing significant energy savings in their operational expenses.
According to a report from the Natural Resources Defense Council, the majority of U.S. small-to-medium sized businesses with on-premise server rooms waste as much as 30% of total electricity consumption powering and cooling servers running 24/7, even when performing little or no work at all. The same research estimates that this much energy waste costs U.S. businesses more than $2 billion in unnecessary energy expenses annually.
Cloud computing is a major boon for businesses looking to cost-effectively reduce their carbon footprint. Here are some key reasons why cloud environments are inherently more eco-friendly:
1. Higher Server Utilization Rate
The U.S. Environmental Protection Agency (EPA) estimates that in-house data centers have a typical server utilization rate between 5 and 15 percent, while server utilization at public cloud data centers is 50% or higher.
2. Power Usage Effectiveness (PUE)
Large cloud computing vendors continue to invest in improving their PUE at costs that would be unbearably expensive for an individual business. Public cloud providers commonly have a dedicated team to deliver state-of-the-art efficiency improvements.
3. Economies of Scale
Running a business application in the cloud is generally more energy-efficient because cloud data centers can serve thousands of organizations at the same time, achieving better economies of scale when it comes to technology and green IT practices.
Caspio helps our customers simplify data management and reduce costs by providing an all-in-one platform with a built-in database, application-building tools, and reliable cloud infrastructure. All applications are hosted in a shared cloud environment running on world-class data centers operated by Amazon Web Services.
Learn how easily you can bring your on-premise apps to the cloud by starting a Caspio free trial.