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Cloud service costs are on the rise: How to choose the best productivity solution for your business

Cloud service costs are on the rise: How to choose the best productivity solution for your business

The cloud technology landscape is witnessing a significant transformation as cloud costs continue to climb. SaaS solutions surged in popularity during the pandemic due to their timely flexibility and convenience, but with an ever-increasing trend in SaaS prices, companies now find themselves re-evaluating their use of of cloud services as they become unsuitable for their needs.

 

With a 20% projected increase in worldwide SaaS end-user spending this year, Gartner predicts that 60% of infrastructure and operations leaders will face cost overruns in public cloud service spending that will negatively impact their budgets. The widespread adoption of cloud storage services has only exacerbated the financial strain on enterprise budgets.

 

Major players in the SaaS productivity industry such as Google Workspace recently started rolling out 20% price hikes to their subscription plans, with Microsoft 365 preceding them in 2023 with a 9% increase to their office applications. Aside from plan price increases, the industry is also facing “SaaS shrinkflation”, where vendors don’t change their listed prices, but rather offer reduced functionality at the same rates.

 

As a result, organizations are finding their SaaS unsuitable, which some have described as a poor return on their cloud investments. However, switching from one SaaS productivity suite to another can come with a hefty price tag. The switch supposes significant costs and operational disruptions to businesses. Moreover, the risk of vendor lock-in further complicates matters, as organizations become tied to their existing plans, making it increasingly difficult to switch providers.

 

In response, many companies have started to explore on-premise private cloud solutions as more stable and cost-effective options in the long run. SaaS productivity tools may offer convenience in some aspects, but they may not always be the optimal choice to handle critical business workloads due to the limited control it offers over the server. Meanwhile, private cloud productivity solutions like Synology Office Suite offer an all-in-one workspace to help businesses boost their productivity.

 

Synology Office Suite provides a comprehensive on-premise productivity suite with essential tools at a one-time purchase. Offering complete data ownership and seamless communication and collaboration tools including cloud storage, email systems, calendar scheduling, contacts management, instant messaging, note-taking, and real-time collaboration apps.

 

Like this, businesses can benefit from a cost-efficient solution and avoid disruptions associated with migrating services due to plan changes. By emphasizing data ownership and security without recurring subscription fees, organizations can safeguard their data and maintain productivity in the private cloud, in face of market fluctuations.

 

Join our productivity solutions webinar to explore how Synology Office Suite boosts productivity for your enterprise: https://sy.to/z8uf2

 

 

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