Cloud transition:
Beyond the major advantages
lie sustainability benefits

Common misconceptions about cloud computing

Perceptions of cost and complexity

One of the primary obstacles to cloud adoption is the perception of high costs. While initial investments are required, the long-term savings often outweigh these expenses. This is because most cloud service costs are distributed over time as operating expenses, unlike the significant upfront investments needed for hardware, infrastructure, or equipment for on-premises solutions.

Migrating to a public cloud can cut the total cost of ownership (TCO) by 30–40%

The pay-as-you-go model provides flexibility that enables organizations to scale services based on demand, preventing wasted resources and promoting sustainable practices. SaaS can alleviate the IT burden, giving organizations more control over their expenses and resource usage.

Providers generally offer tiered pricing

Today, both SaaS and cloud providers generally offer tiered pricing and optimization tools to help organizations right-size their usage and minimize their expenses, ensuring they only pay for what they need. These options make cloud adoption increasingly cost-effective, especially for organizations aiming to balance operational efficiency with financial sustainability.

Data security is a common concern

A common area of concern when talking about cloud solutions is data security, particularly when it comes to organizations, such as healthcare providers, that handle sensitive data. However, cloud solutions are designed with robust security measures, including:

• Encryption
• Compliance and regular security audits
• Access control
• Security monitoring
• Real-time vulnerability scanning

Healthcare is under constant attacks

This proactive approach is especially valuable given the increased number of cyberattacks on both public and private institutions, resulting in an average cost of about USD 4.88 million in 2024, which is 10% higher than in the previous year and the highest average cost to date. In fact, the healthcare industry alone has seen a marked increase in ransomware and data breaches over recent years.

Cloud providers continuously invest in advanced security tools.

That is why major cloud providers continuously invest in advanced security tools, regularly update systems, and employ threat prevention protocols. As a result, 81% of IT leaders have reported significant improvements to their data security since transitioning to the cloud. All these security measures make cloud computing not only safer but also more efficient for organizations prioritizing sustainable and secure IT solutions.

Environmental advantages of cloud computing

Data center solutions and sustainability goals

Healthcare organizations now have the option to move away from resource-intensive, on-premises solutions, thereby eliminating high maintenance costs and reducing the environmental impact of physical infrastructure.

As healthcare organizations aim to balance rapid technological advancements with sustainability goals, cloud computing has emerged as a pivotal solution.

Reducing both energy consumption and environmental impact

It enables a transition to green IT practices, aligning operational needs with broader environmental objectives. Unlike traditional on-premises systems that require constant power and cooling, cloud infrastructure leverages energy-efficient data centers designed to minimize waste and optimize resource usage. These centers often use cutting-edge technologies, such as virtualization and load balancing, to ensure that the hardware operates at peak efficiency, reducing both energy consumption and environmental impact.

Energy efficiency and renewable energy

Major cloud providers design data centers with energy efficiency in mind, often aiming to run on 100% renewable energy within set timelines. This not only enhances environmental sustainability but also aligns with broader corporate goals for reduced operational costs and ecological impact. For instance, Microsoft’s quantitative model comparing cloud services to on-premises solutions showed remarkable energy efficiency improvements across its cloud services, from Azure Compute to SharePoint Online.

Reducing carbon emissions and energy use

Cloud computing offers a significant environmental advantage by centralizing resources and optimizing data center efficiency. Transitioning from on-premises to cloud infrastructure can cut carbon emissions by up to 60 million tons annually. As a leading provider, Microsoft demonstrates how cloud technology can generate energy savings of 22–93%, depending on the service. These gains are made possible through:

• Advanced operational practices
• Energy-efficient IT equipment
• Renewable energy sources

Working towards environmental sustainability with cloud solutions

Aligning with corporate sustainability goals

To meet sustainability goals, organizations should consider cloud providers that prioritize eco-friendly practices, including:

• Reduced water use
• Renewable energy commitments
• Efficient data center cooling technologies

Many cloud providers now offer dashboards and analytics tools to help organizations track and optimize their carbon emissions, making it easier to set, measure, and achieve sustainability targets. This transparency helps organizations not only to align with environmental goals but also to report their progress to stakeholders, reinforcing their accountability and commitment to a sustainable future.

Cloud solutions for the healthcare sector

Because healthcare providers have large-scale data storage and computing requirements for patient records, diagnostics, and research, they need to have a sustainable IT solution at hand. With low maintenance requirements and no hardware updates, cloud technology can help “reduce up to 32 metric gigatons of carbon dioxide equivalent emissions” and directly reduce 1.5 gigatons of carbon dioxide. By adopting cloud computing, healthcare providers can:

• Streamline data management
• Reduce the need for physical infrastructure
• Contribute to industry-wide sustainability goals

Another major advantage of cloud solutions is the possibility for healthcare providers to collaborate more easily on research, share data securely, and leverage cloud-based analytics to improve patient outcomes and drive innovation. Coupled with AI and machine learning advancements, cloud computing can have a positive impact at both an operational and an environmental level.

References:

1. Betley, B., Cariati, T., Gao, F., Hannon, E., Levy, C., Parente, F. & Seo, J. (2023, November). Cloud powered technologies for sustainability. McKinsey Digital. 
2. Boppana, V.R., (2024, January). Sustainability practices in IT infrastructure for healthcare. EPH – International Journal of Business & Management Science.
3. Kazeem, A. (2024, August 29). Cloud sustainability statistics: definition & efforts in 2024. Cloudwards.
4. Lacy, P., Daugherty, P., Ponomarev, P. & Durg, K. (2020, September 22). The green behind the cloud. Accenture.
5. The carbon benefits of cloud computing. (2020, July 29). Microsoft.
6. Vladimirskiy, V. (2024, August 28). Breaking down the top cloud migration myths holding organizations back. Forbes.