12 Benefits of Cloud Computing
Cloud computing has been around for about 20 years, and even though there is a lot of evidence that it is better for business in terms of efficiency, cost savings, and being more competitive, a lot of businesses still do things the old way.
According to a research by the International Data Group, 69 percent of firms currently use cloud technology in some capacity, and 18 percent expect to deploy cloud-computing solutions in the future. Dell reports that firms who invest in big data, cloud, mobility, and security experience revenue growth that is up to 53 percent quicker than their competition. This data demonstrates conclusively that an increasing percentage of tech-savvy firms and industry executives recognize the numerous benefits of the cloud computing movement. Moreover, they use this technology to manage their businesses more efficiently, improve customer service, and significantly raise their overall profit margins.
All of this appears to indicate that, given the current trajectory of the sector, there has never been a better time to put your head in the clouds.
Cloud computing is a term that has gained popularity in recent years. With the exponential increase in data usage that has followed the transformation of civilization into the digital 21st century, it is becoming increasingly impossible for individuals and businesses to maintain all of their essential data, applications, and systems on their own computer servers. This problem’s answer has existed for nearly as long as the internet, yet it has only recently received mainstream acceptance among corporations.
Similar to web-based email clients, cloud computing enables users to access all of the system’s functions and files without having to save the majority of the system on their own computers. In reality, the majority of people are currently use cloud-based services without recognizing it. Gmail, Google Drive, TurboTax, and even Facebook and Instagram are all cloud-based applications. For each of these services, customers transmit their personal information to a server stored in the cloud, which archives the information for later retrieval. And as beneficial as these programs are for personal use, they are even more handy for enterprises that require access to massive volumes of data over a secure internet network connection.
There are still some CEOs who are apprehensive to fully commit their firms to cloud computing technologies. Therefore, we would like to take a moment to discuss 12 business benefits of cloud computing.
1. Cost Savings
20 percent of firms are concerned about the initial expense of adopting a cloud-based server, so you’re not alone if you’re anxious about the price tag associated with making the switch to cloud computing.
But those attempting to analyze the advantages and downsides of cloud computing must consider more than just initial cost; they must also consider return on investment.
Once your business data is stored in the cloud, you will save time and money on project start-ups. Moreover, the majority of cloud computing services are pay-as-you-go for people who are concerned about paying for items they neither need nor want. This means that if you do not take advantage of the cloud’s benefits, you will not be required to spend money on it.
The pay-as-you-go system also applies to the data storage space required to support your stakeholders and clients, so you will only be charged for the capacity you use. These characteristics collectively result in lower expenses and higher returns. Half of the CIOs and IT leaders surveyed by Bitglass in 2015 cited cost savings due to the use of cloud applications.
2. Security
The issue of security is a significant barrier for many firms when it comes to adopting a cloud computing solution. How can you be sure that files, programs, and other data are safeguarded if they are not stored securely on-site?
If you have remote access to your data, what prevents a cybercriminal from doing the same? Well, quite a bunch, actually.
A cloud host’s full-time job is to closely monitor security, which is substantially more efficient than a normal in-house system, in which a business must divide its efforts between a variety of IT concerns, security being only one of them.
And while most firms prefer not to openly address the potential of employee-committed internal data theft, the reality is that an astoundingly high percentage of data thefts are committed by workers. When this is the case, it can be far safer to store critical data off-site. Obviously, this is all somewhat abstract; thus, let’s consider some concrete statistics.
RapidScale asserts that 94 percent of firms noticed an improvement in security after migrating to the cloud, and 91 percent reported that the cloud made it easier to comply with regulatory regulations.
Encryption of data transported over networks and maintained in databases is essential to this heightened security. Using encryption makes information less accessible to hackers and other unauthorized parties. As an additional security safeguard, most cloud-based services allow for user-specific security configurations. While 20% of cloud users claim catastrophe recovery within four hours or less, only 9% can make the same claim.
3. Flexibility
Your company has a limited amount of attention to allocate to all of its duties. If your present IT solutions require you to devote too much time to computer and data-storage issues, you will be unable to focus on achieving company objectives and satisfying customers.
On the other hand, by outsourcing your IT hosting and infrastructure to a third party, you will have more time to spend to parts of your business that directly impact your bottom line.
The cloud offers enterprises greater overall flexibility than local server hosting. And, if you require additional bandwidth, a cloud-based service can fulfill that demand immediately, as opposed to requiring a sophisticated (and costly) update to your IT infrastructure.
This increased independence and adaptability can have a substantial impact on the overall effectiveness of your firm. Sixty-five percent of respondents to an InformationWeek survey cited the capacity to quickly satisfy business demands as one of the most critical reasons a company should migrate to the cloud.
4. Mobility
Cloud computing enables mobile access to company data via smartphones and other mobile devices, which, given that over 2.6 billion cellphones are currently in use worldwide, is a terrific method to ensure that no one is ever out of the loop.
This function allows employees with hectic schedules or who reside far from the corporate headquarters to be in constant contact with clients and coworkers.
For a better work-life balance, you can make information easily accessible to traveling sales personnel, freelancers, and remote employees via the cloud. Therefore, it is unsurprising that firms that designate employee satisfaction as a priority are up to 24 percent more inclined to increase their cloud utilization.
5. Insight
As the digital age progresses, it becomes increasingly apparent that the ancient adage ‘Knowledge is power’ has been replaced by the more current and true ‘Data is money.’
Within the millions of data points around your customer transactions and company processes are nuggets of useful, actionable information just waiting to be discovered. Obviously, filtering through this volume of data to locate these kernels is a challenging task, unless you have access to the appropriate cloud computing tools. Numerous cloud-based storage systems include cloud analytics to provide a bird’s-eye perspective of your data.
With your data stored in the cloud, you can quickly deploy tracking systems and generate customized reports for enterprise-wide data analysis. You can boost efficiencies and develop action plans to achieve organizational objectives based on these findings.
For instance, the beverage company Sunny Delight was able to improve annual earnings by almost $2 million and reduce employee costs by $195,000.
6. Collaboration
If your organization has two or more employees, teamwork should be a primary concern. After all, there is little point in having a team if it cannot function as one.
Cloud computing simplifies the process of collaboration. On a cloud-based platform, team members may see and share information conveniently and securely. Some cloud-based systems even offer collaborative social areas to link employees across the enterprise, hence boosting interest and engagement.
Without a cloud computing solution, collaboration may be feasible, but it will never be as simple or effective.
7. Quality Control
Few things are as harmful to the success of a firm as inconsistent, low-quality reporting. In a cloud-based system, all documents are kept in a single location and format.
With everyone having access to the same data, you can preserve data consistency, prevent human error, and keep track of all modifications and updates.
Managing information in silos, on the other hand, can result in employees unintentionally saving separate versions of documents, resulting in confusion and diluted data.
8. Disaster Recovery
Control is one of the characteristics that contribute to the success of a firm. Unfortunately, regardless of how well-managed your organization’s processes are, there will always be factors beyond your control, and in today’s market, even a small bit of useless downtime can have a resoundingly negative effect.
Your services’ downtime results in lost productivity, money, and brand reputation. You may not be able to prevent or even anticipate the potential calamities that could affect your organization, but there are steps you can take to expedite your recovery.
Cloud-based services provide rapid data recovery in a variety of emergency situations, including natural catastrophes and power outages.
While 20% of cloud customers claim catastrophe recovery in less than four hours, only 9% of non-cloud users can make the same claim. 43 percent of IT executives stated in a recent poll that they want to invest in or improve cloud-based disaster recovery solutions.
9. Loss Prevention
If your company does not invest in a cloud-computing solution, all of your precious data is inextricably bound to the office machines on which it lives.
This may not appear to be a concern, but if your local hardware encounters a breakdown, you could end up losing your data forever. This is a more prevalent issue than you may believe; computers can malfunction for a variety of reasons, including viral infections, age-related hardware damage, and user mistake.
Or, despite your best efforts, they may be lost or stolen (over 10,000 laptops are reported lost every week at major airports).
If you’re not using the cloud, you run the risk of losing any locally stored data. With a cloud-based server, however, the information you’ve uploaded to the cloud remains secure and readily available from any computer with an internet connection, even if your primary computer isn’t functioning.
10. Automatic Software Updates
There is nothing more frustrating than having to wait for a system update to be implemented for busy individuals.
Cloud-based applications refresh and update themselves automatically, rather than requiring the IT department to make a manual organization-wide upgrade.
This saves critical IT staff time and money that would have been spent on external IT consultation. 50 percent of cloud adopters cited the need for fewer internal IT staff as a cloud benefit, according to PCWorld.
11. Competitive Advantage
Despite the growing popularity of cloud computing, there are still people who prefer to retain everything on-premises.
This is their option, but it puts them at a significant disadvantage when competing with those who have access to the cloud’s benefits. If you adopt a cloud-based solution before your competitors do, you will be further along the learning curve when they catch up.
According to a recent Verizon study, 77% of firms say cloud technology gives them a competitive advantage, and 16% believe this advantage is “substantial.”
12. Sustainability
Given the current situation of the environment, it is no longer sufficient for businesses to place a recycling bin in the breakroom and claim to be helping the earth.
Real sustainability necessitates solutions that target waste at every level of an organization. Cloud hosting is more environmentally friendly and leaves a smaller carbon impact.
Cloud infrastructures support environmental proactivity by utilizing virtual services as opposed to physical products and hardware, reducing paper waste, enhancing energy efficiency, and (given that it enables employees to access information from anywhere with an internet connection) reducing commute-related emissions.
Based on the expansion of cloud computing and other virtual data choices, Pike Research predicts the energy usage of data centers will decrease by 31 percent from 2010 to 2020.