Cloud Computing in Business- What It Is & Why It Matters
As one of the fastest-growing sectors of technology, cloud-based computing services are being adopted by a growing number of businesses in order to help them cut down on costs, improve their operational efficiencies, and to simply provide better products and services to their customers.
By 2025, the cloud computing industry is estimated to grow to approximately $832.1 billion, which is up nearly $500 billion more than it's a current market cap of $371.4 billion. Along with this, businesses are increasingly adopting this newer type of technology, which helps simplify their everyday operations.
Unlike the early millennium, cloud-based services are now extremely popular. And most businesses have already realized the benefits of using such cloud solutions.
However, some are still unaware or simply unsure if using these newer types of cloud-based technology is the right solution.
Here's why businesses should be leveraging this new, revolutionary technology.
What is Cloud Computing?
Cloud computing refers to the use of remote computing resources made capable thought the internet.
Using this type of technology, businesses no longer need to maintain on-site computer infrastructures, but can still access the benefits of large digital storage systems and their computing power, and cloud networks can be either public, private, or hybrid.
On a public cloud network, businesses will share the network's computing resources with other businesses and individuals. On the other hand, with a private cloud network, the entirety of the cloud's resources belong to the business or individual paying for the service.
What Cloud Computing Offers
Businesses can use cloud resources for several purposes, including-
- Storage - Many businesses pay for remote disk space, which can be used to store data and/or applications. Businesses can also use cloud storage for creating and storing backups of their website securely.
- Infrastructure as a service (IaaS) - Cloud infrastructures are flexible and cost-effective, allowing business owners to access increased computing power or network resources, without the cost of owning and managing their own infrastructures.
- Platform as a service (PaaS) - PaaS provides enterprises a cloud environment to develop and deploy applications.
- Software as a service (SaaS) - Software can be hosted on a cloud and offered on a subscription basis. Examples include Quickbooks, Dropbox, etc.
Why Cloud Computing Matters to Businesses?
Not only is cloud computing significantly more versatile than traditional in-house computer infrastructure, but there are also many other benefits that businesses can - and should - be taking advantage of.
Businesses that use cloud-based computing services can save money in many different ways. In fact, a survey by TechRepublic showed that-
- 94% of respondents who adopted cloud technology were able to save on setup and maintenance costs.
- 47% said they curtailed IT costs by 30% to 35%.
- 62% were able to save capital expenditures on both IT and software.
There is a cloud computing software for virtually every business need imaginable, including accounting, employee payroll, web hosting, and much more.
In other words, cloud-based computing services offer a high degree of flexibility to all businesses, no matter the industry they're in.
Apart from being cost-effective, this approach can help businesses adjust to volatile market conditions, by reducing their overall operational costs. They can simply rent additional resources during periods of high demand, and then cease using them during slower times of the year.
The flexibility of the cloud also makes it much easier for businesses to scale up or down as needed. This is because business resources can be purchased at a moment's notice, and there is also no need to disrupt services or wait for weeks.
By using cloud-based services, scalability is virtually instant and hassle-free.
Improved collaboration is one of the natural advantages of cloud computing. Businesses can break out of on-premise silos and host data and apps on the cloud for higher accessibility.
Employees can easily access data and apps by using laptops or mobile devices, even on-the-go.
According to Synergy Research Group, the cloud contributes heavily towards the growth of the global collaboration market.
Cloud service providers take the responsibility of maintaining and running their cloud infrastructures. Therefore, businesses using these services will also get the benefit of any security features or measures implemented by the service provider.
Typically, cloud-based service providers will offer 24/7 monitoring, as well as encryption, as a part of their service to help keep their networks safe and free from cyberattacks.
In the end, business owners can expect a much secure digital environment for their business operations.
Downtime or network disruptions are a nightmare to any business owner. In fact, a single hour of downtime can cause some organizations to lose as much as $10,000.
Fortunately, moving to the cloud can reduce the risk of downtime since cloud networks are typically monitoring 24/7, offering quick emergency support, just in case anything ever does go wrong.
Many cloud-based solution providers offer uptimes of 99.99%, giving business owners peace of mind that their digital infrastructure will remain up and online at all times.
Improved Performance and Growth
Finally, all the benefits of cloud computing add up to increased efficiency and business performance.
In fact, most organizations that move to the cloud experience an 18.80% average boost in process efficiency? Along with that, they also, on average, achieve about a 19.63% growth increase.
Adopting Cloud Computing Today
In the end, using cloud-based technology is a sure-fire way to unleash business growth, driving better operational efficiency, and in turn, better returns on investment.
From cost savings to improved productivity, using could-based technology can drive any enterprise towards the path of success.
And, now is the time that businesses can, and should, be using cloud-based computing solutions to gain an unbeatable competitive edge on their competition.