3 Main Advantages of Cloud Computing in Business
Advantages of Cloud Computing in Business are Hard to Ignore
The advantages of cloud computing in business are really starting to shine these days. Cloud is getting harder to ignore with the shifting role of the CIO. Today’s organization’s CIOs are not in charge of IT management anymore, but are now in charge of growing the business, driving innovative building strategies and reducing costs.
Lowering costs and driving innovations is a lot of pressure. Cloud computing is a driving force to help improve in these areas. Businesses are able to reduce total costs and transition themselves from a cost structure that is fixed to a variable one by integrating cloud solutions. They can also enhance strategic innovations and initiatives by freeing up important IT resources. Below are a few more advantages of cloud computing in business.
Both money and time tend to hold back businesses from pursuing new ideas. Let’s take designing and testing a new product line, for example. With on-demand cloud computing being available, businesses can now have their new configurations up and running in only a few hours or in some cases; minutes, reducing time considerably. Since businesses are charged only for the time spent using cloud, it helps reduce costs as well which is clearly one of the biggest advantages of cloud computing.
Improvement with Data Security
A big concern for people who are skeptical of cloud is they feel they are risking data security once it hits outside their internal firewall. In reality, there is an increase in security using cloud because of its stringent standards in ISO security that the cloud providers need to adhere to, as well as security audits that are performed regularly. This prevents risks associated with lost confidential data and hacking.
Many small to medium-sized businesses risk losing confidential data by ignoring cloud technology and storing their private data on-site instead. However, according to a survey conducted by the Onyx Group, many businesses have a good idea of the significant importance of cloud. Out of all participants surveyed, 30% thought cost effectiveness was one of the main advantages of cloud computing, 40% felt resilience was, 38% ruled on flexibility and scalability and 22% valued agility. Companies are able to market quickly, since cloud services are easy and fast to set up. However, even though there are clear benefits to cloud computing, almost 40% still do not incorporate cloud in their IT management.
Actually, traditional methods are still being used by many businesses for data backup even though there is significant research out there that shows that nearly 50% of tape backups do not restore. Because of this, businesses are risking damaging their profit margins and their growth. Data loss can have a profound impact on businesses too.
Subscription Based Fee Model
With a subscription-based, pay-as-you-go type of cost structure, there is a lower initial investment with cloud solutions which are far more lower than on-premise overall costs. Also, in the event a customer is not happy with the product, cloud solutions are not hard to get out of. Therefore, any potential risk would be to the cloud vendor and not the business which is by far one of the leading advantages of cloud computing.
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