The Relationship Between Corporate Real Estate and Cloud Technology
With the increasing usage of cloud technology across the board, it’s raising a lot of curiosity about how it works and what the advantages are of using a cloud-based subscription service. In order to help understand how cloud technology benefits corporations, a comparison may be drawn between cloud technology and commercial real estate. Here are some of the ways that corporate real estate is similar to cloud technology.
In the cases of cloud technology usage and of leasing real estate for corporations, it’s true that both options are flexible according to the needs of the corporation. In real estate, a lease is bound by a limited contract; once the lease is up, the business is free to move as it wishes or to stay. The lease can also be adjusted initially, according to what the business needs, thereby making this a more flexible option than purchasing real estate outright.
Cloud technology is similar in that you’re essentially leasing space from someone else, except the space is on a remote server instead of a commercial building. Cloud-based storage is enabled by a subscription-based contract. Once the subscription is up, a business can move on to a different provider or stay and adjust their plan as needed.
Cloud technology and corporate real estate options can also save businesses money, within the right contexts. In real estate, businesses aren’t necessarily responsible for any building repairs or accidents that happen – that’s the job of the property manager. Businesses also don’t have to pay a huge purchasing fee; they simply pay to lease it and possible a company will pay for some kind of renter’s insurance, but the property manager carries the bulk of the responsibility.
Cloud technology is similar to real estate in this way, too, because the company you’re subscribing to is responsible for the maintenance of their remote servers. You also don’t have to pay a lot of money to update your software when it breaks down – your cloud software company is required to keep up on that, so you don’t have to worry about it. This also proves beneficial with the fast-changing nature of technology. There’s always a new update, and with cloud technology you have better access to updated services.
As is true with both corporate real estate and cloud solutions, it may be a little more money up front, but (depending on your business needs) it may save you a lot of money in the long run. Depending on the long-term needs of your company, corporate real estate and cloud technology may indeed be the way to go.