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  • Writer's picturePeter Thomson

How can remote computing save money and impact the income statement?

Here are a few ways remote computing can help companies save money:

  1. Hardware Costs: Remote computing can help companies save money on hardware costs by centralizing computing resources and reducing the need for individual devices to have high-performance computing resources. Companies can use virtualization technology to create virtual desktops or servers, which can be accessed remotely by employees using low-cost devices such as thin clients or personal devices.

  2. Software Costs: Remote computing can also help companies save money on software licensing costs. By using virtual desktops or servers, companies can reduce the number of licenses needed for their software applications. Additionally, some remote computing solutions offer pay-per-use pricing models, which can help companies avoid paying for unused licenses.

  3. IT Management Costs: Remote computing can reduce IT management costs by centralizing IT resources and reducing the need for IT staff to manage individual devices. IT staff can manage virtual desktops or servers from a centralized location, reducing the need for on-site IT support.

  4. Real Estate Costs: Remote computing can also help companies save money on real estate costs. By enabling employees to work remotely, companies can reduce their office space needs and potentially save money on rent or property expenses.

The exact amount of savings will vary depending on the company's specific needs and the remote computing solutions they implement.


Latency, or the delay between sending and receiving data, can have negative impacts and costs for remote computing. Here are a few examples:

  1. Reduced Productivity: High latency can cause delays in accessing applications or data, which can reduce productivity for remote workers. This can lead to frustration and decreased job satisfaction.

  2. Impaired Collaboration: Latency can also impair collaboration between remote workers. Video conferencing, file sharing, and other collaborative tools may not work effectively if there is high latency, leading to communication breakdowns and delays.

  3. Increased IT Costs: Latency can also increase IT costs for remote computing. Companies may need to invest in additional hardware, software, or connectivity solutions to reduce latency, which can be expensive.

  4. Reduced Quality of Service: High latency can also result in reduced quality of service for remote computing solutions. For example, video conferencing quality may be reduced or applications may not work as smoothly, leading to a poor user experience.

  5. Increased Security Risks: Latency can also increase security risks for remote computing. Delays in data transmission can leave data vulnerable to interception or unauthorized access, leading to potential data breaches or other security issues.

Overall, latency can have negative impacts and costs for remote computing, including reduced productivity, impaired collaboration, increased IT costs, reduced quality of service, and increased security risks. Companies must carefully evaluate their remote computing solutions to minimize latency and ensure that their employees have a productive and secure computing environment.


Remote computing can have an impact on the income statement of a company. Here are a few examples:

  1. Cost of Goods Sold (COGS): Remote computing can impact the COGS of a company if they are using cloud-based services or software. The cost of using these services will be included in COGS, which can impact the gross margin of the company.

  2. Operating Expenses: Remote computing can also impact operating expenses. Companies may need to invest in additional hardware or software to support remote computing, which can increase operating expenses. Additionally, companies may need to spend more on IT support or training to ensure that remote workers can access the resources they need.

  3. Depreciation and Amortization: Companies may also need to account for depreciation and amortization of the hardware and software used for remote computing. This can impact the net income of the company.

  4. Revenue: Remote computing can also impact revenue. By enabling remote work, companies may be able to expand their customer base or improve customer satisfaction, leading to increased revenue. Alternatively, if remote computing is not implemented effectively, it can impact customer satisfaction and lead to decreased revenue.

Overall, remote computing can impact various aspects of a company's income statement, including COGS, operating expenses, depreciation and amortization, and revenue. Companies must carefully evaluate the costs and benefits of remote computing to ensure that it is implemented effectively and has a positive impact on their financial performance.


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