Cost Benefits of Using Cloud-Based Software

This article is Part 1 of two articles exploring the benefits of cloud-based software for dental practices. Part 1 focuses on cost benefits and Part 2 focuses on additional benefits.

As a dentist and small business owner, you’re likely very careful with your purchase decisions. You want the most value for your hard-earned money.

You also want the latest technology for your practice if—and only if—it helps you achieve your profitability goals. Technology that’s unstable, high-maintenance or difficult to learn hurts productivity and can be a wasted expense.

Many small businesses today are choosing cloud-based software and services as a stable and affordable technology solution. According to researcher SMB Group, the cloud is the new IT infrastructure for small-to-medium-sized businesses (SMBs) this year:

Why the Cloud?

In May 2015, Forbes predicted that 78 percent of U.S. small businesses will have fully adopted cloud computing by 2020. Why is the cloud so attractive to small businesses? According to Forbes, the top three reasons are:

With a low initial cost and lower overall IT costs, cloud-based software offers budget relief to small business owners. You get more value for your money with a cloud solution because you’re not paying for software features you don’t need. And, with a monthly subscription, your IT costs are predictable and your budget forecasts more accurate.

While most dentists still use client-based systems with on-premise servers, others are moving to cloud-based software. They access their practice management system through the Internet and store their data on offsite servers.

Cost Benefits of the Cloud

Cloud-based software offers your dental practice a more productive staff, high system availability, greater mobility, and several cost benefits.

Cloud advantages over on-premise software include:

Total Cost of Ownership

Compared to a traditional on-premise solution, how much less expensive is a cloud-based solution? The answer depends on many factors, including the costs for these items:

You can roughly compare the total cost of ownership of an on-premise system to a cloud-based system using an online calculator. Keep in mind that the calculator doesn’t include the hidden costs of on-premise software, such as consulting fees, connectivity fees, storage and backup fees, virus removal costs and so on.

Cost benefits aren’t the only reason dental practices and other small businesses are moving to the cloud. We will explore additional benefits, such as mobility, multisite dentistry, integration with web applications and more in Part 2.

For more information on the advantages of using cloud-based software in your dental practice, download on how to transition your dental practice to the cloud.