Many businesses are utilizing cloud technology to enhance or streamline their existing operations, data storage, hosting and software development. But, reengineering the back-end architecture and building the framework to access virtual environments can be tricky and take months to finalize. This fear has held organizations from making the jump to cloud computing by sticking to their on-prem counterparts. According to a report by marketsandmarkets, the global cloud computing industry stood at USD 445.3 billion in 2021 and is expected to grow beyond USD 1 Trillion by 2027. This positive outlook is promising enough to consider using cloud technology to some capacity in your organization but, here we look into some key aspects of Cloud that can help your business.
Reduction in Capital and Labour costs
Setting up a basic on-premise server can cost upward of $7000 excluding the monthly housing and maintenance costs. Cloud technology can save space and the cost incurred by allowing businesses to pay a cloud provider for hosting. This transforms the capital expense into an operational expense and providers like Oracle have stated a total saving of 30-50% by switching to the cloud. On-prem servers, apart from the capital invested, also require an IT team to manage the entire infrastructure and since the cloud does not require you to have any physical assets, this cost is reduced as well. For example, Goldman Sachs is estimated to have reduced their IT staff by 50% once they had migrated to the cloud.
Improved Collaboration and Mobile Work Environments
Cloud computing improves collaboration by making documents available to everyone located in different regions at any point in time. This facilitates workforce mobility and gives a flexible work environment. Businesses can cut down their office operational costs while making their communication with customers and vendors more efficient. Anyone with an internet connection and a device to access your cloud, can work.
Prototyping and Experimentation
One of the biggest advantages that cloud can provide to any organization is the low cost of prototyping and experimentation. From scaling to different regions to utilizing the cutting-edge AI modules, a business can develop and push innovations into their mainstream channels without investing in new systems, servers or even software that is required for processing intensive machine learning and artificial intelligence programs. These services are easy to avail of and can be integrated at a much lower cost than hiring a dedicated team for its development.
Less Risk of Disaster and Increased Security
Data stored in the cloud can be easily accessed but it is also secure. Stored on encrypted servers with multiple copies of the data in locations independent of each other, Cloud provides a robust backup and disaster recovery service. Even on individual devices like laptops or phones that can access cloud through the internet, one can remotely clear out all the data stored on it in case of theft.
Fulfilling the Increasing Resource Demands
Businesses like E-commerce that have seasonal or hourly peaks profit massively from cloud computing. By enabling certain parameters, extra cores can be switched on automatically when the load on a website increase. By using the elastic load balancer, variable loads can be accommodated. Hence, there is no need to purchase extra computing power just for the peaks. In future, this scaling can also be done on an international level due to the large number of regions served by cloud providers, giving a global reach to the business.
This flexibility and ease of operation of cloud comes at a much lower cost than its on-prem counterparts and it does not have to be expensive or complex. Start this journey with Stanra Tech, your partner in digital transformation. Connect with us at email@example.com.