Cloud Technology is an integral part of the IT strategy and frameworks for 82% of the organizations around the world, according to Cloud Sherpas’ 2015 Enterprise Cloud Report. So, why are businesses moving to the cloud? Let’s discuss the major drivers for businesses moving to the cloud.
- Reduction of Capital Expenditure
According to a 2015 Cloud Enterprise report, 52% of organizations have registered business growth after cloud adoption. Cloud makes your applications and systems more available, reduces your capital expenditure involved in procuring infrastructural hardware, and maintains the inventory at a level that it can meet demand spikes. Given the limited lifespan of this hardware, it has to be changed periodically, thereby compounding the costs to the company. Moving to the pay-as-you-go model has helped industries save a good amount and invest in resources directly linked to business growth. It also helps companies get over resources like lack of required systems availability, personnel, or expertise.
- Higher Efficiency
According to a 2015 Cloud Enterprise report, almost 71% of the organizations have stated that efficiency is the key motivator for moving to the cloud. Cloud helps you optimize resources, streamline the workflows and negate the unnecessary steps for enhancement of productivity. Cloud enables strong collaboration, project, and customer management, thereby raising the entire organization’s efficiency and enriching the user experience.
- Improved Business Agility
Business agility refers to the faster delivery of products with changing customer demands. Cloud provides you the ability to automatically scale up and down your infrastructure with demand, and hence you can respond with better products in a faster manner. The solutions are more easily tested on the cloud than on-premise. Your IT team is freed from the time it was involved in traditional on-premise application tasks, and hence they can focus on quicker delivery. Many organizations like Leisure, retail, and entertainment conducts seasonal events or campaigns. Cloud helps them to scale up their resources for meeting the demands of such times.
- Lowered Operating Costs
Moving to the cloud allows you the opportunity to optimize your daily business operations. With in-built provisioning and automation, pre-emptive incident management is possible. The cost involved in query solving, procurement process, and set up is greatly reduced. The cost of maintenance, producing upgrades, security patches, and others becomes the cloud provider’s responsibility. Hence, your investment in such activities goes down.
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- Cutting- Edge Security
Cloud providers invest hugely in creating impenetrable security for their clients. Regular security updates are provided, and timely up-gradation and security patches are employed. The cutting-edge security tools and technologies ensure that you have higher threat intelligence and are much better than on-premise security standards.
Are you starting a new cloud initiative? Always ask why!
Before starting a new cloud initiative, you must figure out which of the six possible reasons drive your decision to move to the cloud. Once you have done that, you also need to prioritize that decision against other factors you have identified as part of your cloud strategy. As mentioned earlier, this is essential to success because it will help you align your activities with the desired end goal and make it easier to resolve conflicts between factors as they arise.
For further discussion, you can talk to an expert at iSmile Technologies.
