To keep up with the pace of the world, businesses need to keep evolving in the digital age. One of the surefire ways to do so is to adopt cloud-based business management platforms as they come with dozens of advantages over traditional solutions. According to researchandmarkets, the global market value of the cloud computing industry in 2020 was USD 371 billion. In 2022, this has grown to USD 545.8 billion. In 2027, it is projected to be USD 1240.9 billion! This shows that cloud-computing is here to stay. In fact, you are likely to be using some form of cloud-based service to read this very article. Let us have a look at the advantages it brings in business management.
Advantages:
1. Scalability
Being able to quickly scale an IT solution is one of the most important advantages of using cloud- based business management platforms. Scalability refers to the expansion of infrastructure to handle an increased load for every application. Organizations with their own hardware setup are restricted by their size and processing power. Using cloud services solves this problem for good and thus helps businesses grow.
A 65% majority of respondents to an InformationWeek survey said “the ability to quickly meet business demands” was one of the most important reasons a business should move to a cloud environment.
2. Ease of access/flexibility
As cloud computing services as present over virtual media, employees can access data from anywhere, be it their homes, office, or even a remote location, as long as they have a reliable internet connection. Unlike grid computing, cloud computing promotes flexibility in the workplace, which was especially important during the Covid-19 pandemic.
Employees, especially those in sales, who are constantly on the move can access the data even via their smartphones. It also provides a better work-life balance to employees with a busy schedule, those who live away from the office, freelancers, etc. Thus, organizations with employee satisfaction listed as a priority are up to 24% more likely to expand cloud usage.
3. Eco-friendly
Due to its collaborative nature, a cloud platform ensures that data is shared between the various teams of the project digitally in real time. This equates to a reduced usage of paper and materials required for hardware globally. Moreover, the flexibility it offers (as discussed in the previous point) means that as employees won’t have to travel to work anymore as they can adopt the Work-From-Home (WFM) model. This would be a greener option for the planet.
4. Quality control by reducing the risks of errors
In cloud-based systems, all the documents are stored in one place in a single format. As everyone has access to these documents, data-consistency can be maintained as human error is almost eliminated. There are clear records of reviews and updates as well, which help avoiding confusion and data-dilution.
5. Lowered complexity of IT infrastructure management
Organizations that have their own IT infrastructure have to dedicate a significant chunk of resources into maintaining it and into the R&D (Research and Development) of new solutions. However, the responsibility for securing and managing IT infrastructure of a cloud service is the sole responsibility of that cloud provider. Thus, organizations that opt for cloud services can allocate those resources resources to fields like business development, customer relationships, growth strategies, etc., thereby increasing efficiency and profits.
PCWorld lists that 50% of cloud adopters cited requiring fewer internal IT resources as a cloud benefit.
6. Innovation and DevOps
Innovation is directly proportional to business growth. Using set legacy technologies can restrain an organization’s ability to come up with new solutions as well as implement them at a scalable level. Fighting back-end performance issues can also be a major struggle, especially in the realm of web applications.
Cloud-technology doesn’t restrain any organization’s technological abilities, thereby speeding up the development of scalable new solutions. The Internet of Things (IoT) industry has been able to innovate, create and launch world-changing products by using cloud as its infrastructure base, thereby increasing agility, reducing costs and improving performance.
Using DevOps (a conjunction of development and operations) in tandem with cloud computing provides an ease of communication between typically isolated teams during the entire development cycle, which leads to faster outputs with better functionalities. DevOps doesn’t just increase the pace, but also the quality of innovative solutions.
Dell reports that companies that in big data, cloud mobility, and security enjoy up to 53% faster revenue growth than their competitors.
7. Cost-efficient
Organizations with their own IT infrastructure spend a large chunk of their money on upfront hardware and software purchases and maintaining their IT infrastructure. They may also not be able to keep up with the software updates being rolled out as they are expensive and time- consuming to implement.
Using cloud for their business management ensures that they are always working with the latest technologies at a fraction of the price. The time to spend on computing, storage, and networking is reduced, which exempts plenty of costs. It also has shown amazing results in reducing operational costs, maintenance, and upgrade expenses as well. Organizations can also use these solutions on a subscription-based plan as most cloud-computing services are pay-as- you-go, bringing down the costs further. You will also only be paying for the exact space you need, leading to lower costs and higher returns.
A Bitglass survey from 2015 shows that half of all CIOs and IT leaders surveyed that year reported cost savings in 2015 as a result of using cloud-based applications.
8. Ease of collaborative effort and sharing, and providing a competitive edge over others
It is important for the various team members of an organization to work together as a well-oiled machine for maximum efficiency. Cloud computing makes collaborations easier as data can be easily and securely shared. In order to increase interest and engagement, some cloud-based services even provide collaborative social spaces. Non-cloud collaborations may be possible, but they will never be as easy or secure as cloud-computing options.
Adopting could-services before your competition will ensure you are ahead of the learning curve. The major advantage is the access and affordability of data for both small and medium- scale enterprises. It also reduces IT costs which is beneficial when you are starting your business. A Verizon study showed that 77% of businesses feel cloud technology gave them a competitive advantage, and 16% believed this advantage was significant.
9. Helps streamline supply chain management
According to researchandmarkets, supply chain management with SaaS (Software as a Service) is estimated to hold the highest Compound Annual Growth Rate (CAGR) of 17.6% in the cloud computing platform market. The SCM (Supply Chain Management) segment covers logistics, inventory and production planning. Streamlining SCM for large organizations is a tedious task due to the sheer complexity of them being multi-disciplinary. Cloud-based SCM solutions can tackle these issues.
10. Improves reporting and analysis capabilities
Sifting through all your business data to gain insights and predictive analysis is a huge task. Without the right data computing tools, you may never be able to optimize your business and get actionable insights. However, many cloud-based storage solutions offer cloud analytics. By utilizing tracking mechanisms and building customized reports to analyze information organization wide, you can increase efficiencies and build action plans to meet organizational goals.
The beverage company Sunny Delight was able to increase profits by about $2 million a year and cut $195,000 in staffing costs through cloud-based business insights.
11. Enhanced compliance and security
All major cloud service providers are enterprise-level organizations that employ stringent security, compliance, and data protection standards. They dedicate vast amounts of resources to developing advanced security protocols, and follow strict regulatory/compliance requirements. The safety of an in-house IT system in only a part of the overall list of duties of an organization, whereas it is a full-time job for a cloud-service provider. Also, the stringent safety protocols of the latter help prevent data thefts by employees. This is precisely why nearly all of the top organizations in tightly-regulated industries like healthcare, pharma, government and defense (and their related verticals) are utilizing cloud computing services.
Rapidscale claims that 94% of businesses saw an improvement in security after switching to the cloud, and 91% said the cloud makes it easier to meet government compliance requirements. The key to this is the encryption of data being transmitted over networks and stored in databases. By using encryption, information is less accessible by hackers or non-authorized personnel. As an added security measure, with most cloud-based services, different security settings can be set based on the user.
12. Ensures a secure data-backup option and helps with disaster recovery (DR)
It is crucial to have a data-backup in case your primary systems fail for whatever reasons. If you have no backup, the loss of data could potentially shut down your organization. If you have a physical backup, it could also be potentially lost, destroyed or stolen.
It is infinitely better to have this backup on a cloud-based platform as the data can be recovered remotely and operations can be started again as soon as possible. Rapidscale claims that 20% of cloud users claim disaster recovery in four hours or less, while only 9% of non-cloud users can claim the same. 43% of businesses that experience a disaster never open. Moreover, 93% of businesses that don’t have a DR plan run out of business within a year of experiencing a disaster.
Conclusion
With 451 Research showing that about 90% of organizations are already on the cloud in some capacity, the question isn’t “If you should be on the cloud” anymore. Rather, it is “When will you be on the cloud?”. In 2019, SaaS (Software as a Service) market revenues exceeded USD 110 billion. In 2020, total cloud services revenues exceeded USD 250 billion. With the IoT (Internet of Things) set to grow in the coming years, organizations that provide and use cloud services are only going to grow. This growth in computing capabilities and end-user functionalities will positively impact business across nearly all industries and verticals over the next decade.
