Benefits of Cloud Computing for Business
It’s 2022, and the cloud as we understand it is just one facet of the cloud computing world that encompasses Internet as a Service (IaaS), Platform as a Service (PaaS) and software as a service (SaaS). The complex universe of multiple, varied networks and technologies spawned a multi-billion dollar industry with revenues of over US$150 billion, prior to the pandemic.
The pandemic years have brought increased activity and expansion of cloud computing with unprecedented change in the way we work – particularly remote and hybrid working models becoming more widespread – leading to increased spending on IT infrastructure by businesses from all walks of life.
Three cloud computing giants control over 60% of the market share in the space, with AWS capturing the largest share at 33%, followed by Microsoft Azure at 21% and Google at 8%. Providers like Alibaba and Huawei have emerged as future leaders in the field, with China contributing to global cloud expansion.
The rise in cloud-focused IT spending warrants a closer look at the benefits of the cloud for businesses and why it’s relevant for businesses to have a cloud strategy if they don’t already have one, and how can- they make the most of it.
The main benefit of cloud computing for businesses is cost reduction. The obvious reduction in capital expenditure on technology infrastructure by moving to the cloud from on-premises hardware comes from the fact that the business only spends what the business needs and uses, with the ability to scale up or down as needed, on demand.
The distributed nature of cloud services enables massive reductions in total cost of ownership. Cloud providers typically have hundreds of thousands of users in all geographies, allowing them to pass on the benefits of lower operating costs to their customers.
The second most impactful benefit of the cloud is the increased mobility it offers its users. Since the pandemic, the majority of the IT workforce globally has shifted to remote or hybrid working models. This ability to work from any time zone and any geographic location is not possible with on-premises hardware and software.
The increased number of people working from home in the post-pandemic scenario is the main beneficiary of increased cloud-facilitated mobility. Businesses that depend on these employees for critical tasks will benefit even more, as employees can access work on the go.
According to a recent RapidScale report, more than 90% of respondents saw an improvement in overall infrastructure security after adopting cloud computing. Advanced security tools such as encryption, firewalls, DDoS attacks, and identity access management help create some of the most secure systems.
With predefined access conditions, automated security and software updates, and easy integration of high-end security tools with the cloud service, the cloud is a more reliable choice over on-premises infrastructure. and the high costs associated with its maintenance. .
According to a recent Gartner report, “The global infrastructure-as-a-service (IaaS) market grew 40.7% in 2020 to $64.3 billion, from $45.7 billion in 2019.” . For any business, growth and expansion automatically mean greater spending on infrastructure. With physical infrastructure, this involves planning and provisioning, and takes time, resources, and time.
With the cloud, the ease of starting a new business or expanding an existing one involves minimal effort and expense, allowing for greater flexibility in operations, allowing businesses to hire talent across borders. with much lower infrastructure spending.
More speed and collaboration
Speed is a major factor that determines the success of most modern businesses. This typically includes deployment speed, processing speed, and latency. While on-premises infrastructure has the lowest latency, its limitations in the international workspace far outweigh the benefits.
Likewise, to ensure a secure collaborative workspace in the hybrid age, cloud computing solutions are the only option. Ensuring that resources can be shared more quickly and accessed by the workforce across geographies is a unique advantage that small, medium, and large-sized businesses consistently benefit from.
Systems integrators around the world, including TCS, Tech Mahindra, Accenture and others, have been actively building their multi-cloud capabilities to serve a wider range of businesses. A recent study by Verizon indicates that 77% of companies believe the cloud gives them a competitive advantage.
The benefits of the cloud are only growing as the IT industry increases its spending on the cloud. Now is a good time to move to the cloud if you haven’t already.
Written by: Mr. Subramanyam Reddy, Founder and CEO, KnowledgeHut