Cloud computing has transcended being a mere buzzword; it has emerged as a thriving industry, currently valued at $371 billion worldwide and continuously expanding. Projections indicate that by 2025, the global cloud computing market will surpass a staggering value of $832 billion (researchandmarkets.com).
The significance of cloud computing for businesses cannot be overstated, as it offers a multitude of benefits across various areas such as large-scale data storage and analytics, web-based service delivery, infrastructure scalability, and disaster recovery, among numerous other applications.
According to Exploding Topics, approximately 89% companies have adopted a multi-cloud strategy. While 80% take a hybrid approach, combining both public and private clouds to meet their specific needs. Remarkably, despite the already widespread adoption of cloud systems, 97% of IT leaders express their intention to further expand their cloud infrastructure. This demonstrates the recognition of the value and benefits offered by cloud computing, driving organizations to pursue its expansion and integration even more extensively.
Outlined below are 10 reasons why IT managers should leverage cloud computing for business growth in 2023 and beyond.
Leverage cloud computing for business growth
1. Scalability
The remarkable scalability of cloud computing stands as one of its key advantages. The ability to swiftly and effortlessly scale IT solutions can have an instantaneous and extensive impact on businesses. In the past, organizations were confined by the size and processing capabilities of their hardware infrastructure, making on-demand scaling an unattainable feat.
However, the advent of cloud computing has eradicated this constraint, revolutionizing the management of technical resources for businesses. The cloud empowers organizations to break free from the limitations of hardware setups, opening up unprecedented opportunities for scalable and flexible resource allocation.
2. Digital Innovation
The connection between digital innovation and business growth is undeniable. Organizations that rely on outdated legacy technologies may impede their ability to explore new solutions and deploy them at a scalable level. The struggle to address back-end performance issues, particularly in web applications, can pose significant challenges.
Adopting cloud computing as the foundation for innovation can yield several benefits, including enhanced performance, cost reduction, and increased agility. A prime example lies in the realm of IoT product development, where companies leverage cloud computing to drive innovation at an unprecedented pace.
Cloud computing has played a pivotal role in enabling the IoT industry to innovate, create, and launch groundbreaking products that are reshaping the world. This impact extends throughout the entire technology ecosystem, fostering transformative advancements.
With the widespread integration of technologies like artificial intelligence (AI), machine learning, and edge computing, especially within the cloud computing domain, the industry is poised to experience rapid growth and continuous evolution.
This expansion in computing capabilities and the availability of advanced end-user functionalities will have a direct and transformative impact on businesses across diverse industries and verticals in the upcoming decade.
3. Cost-Effective
The cost-effectiveness of cloud computing stands as a prominent benefit for businesses. While cloud migration may involve initial expenses, focusing solely on potential cost savings is not the optimal approach. Instead, it is crucial to evaluate the existing expenditures on IT services compared to the anticipated costs associated with cloud adoption.
Determining the actual total cost of ownership for a cloud solution can be challenging due to the diverse requirements of each project or solution. Engaging a cloud partner for an approximate estimation is generally recommended.
The true value of cloud computing lies in the additional functionalities inherent in cloud environments, such as agility, scalability, and optimized DevOps practices. These features contribute to business growth and operational efficiency, transcending mere cost considerations.
4. Improved DevOps
The primary advantage of DevOps lies in its ability to accelerate the deployment of innovative solutions, fostering both quality and speed. This is achieved through a flexible communication process that promotes collaboration among traditionally siloed teams throughout the entire development cycle.
The core reason why numerous organizations have adopted a DevOps model is the capability to introduce new functionalities while ensuring stability. However, failing to leverage cloud computing alongside DevOps means missing out on a significant opportunity to expedite product development processes and benefit from the operational enhancements provided by the cloud.
Furthermore, the capacity to consistently release new functionalities while maintaining application stability serves as another pivotal reason why cloud computing holds immense importance for businesses.
Drive business success with DevOps
5. Enhanced Compliance & Security
Prominent cloud service providers in Vietnam, such as VNG Cloud, are reputable enterprise-level organizations that prioritize robust security measures, compliance adherence, and data protection standards.
One of the primary concerns expressed by business leaders regarding cloud computing is the secure transfer of critical applications and sensitive company or customer data to the cloud. However, it is crucial to recognize that major cloud service providers invest significant resources in developing advanced security protocols and diligently comply with stringent regulatory and compliance requirements.
Organizations operating in tightly-regulated industries like healthcare, government, pharmaceuticals, and defense must adhere to numerous industry-specific compliance mandates to ensure the integrity of their applications and data. It is noteworthy that nearly all leading organizations within these industries and related verticals are leveraging cloud computing services, underscoring the confidence placed in cloud technology for maintaining robust security and meeting compliance obligations.
6. Flexibility
The importance of cloud computing for businesses is often attributed to its inherent flexibility. It is evident that cloud infrastructure offers greater flexibility. However, flexibility in the context of cloud computing also encompasses its future-proof nature. The technology industry is in a constant state of evolution, where adaptation is not only crucial for survival but also vital for business growth.
In the past, expanding a business was a costly endeavor that often required significant human and financial resources for a single project that may or may not yield business growth. Today, organizations possess the technical capacity to scale on-demand and adapt to market changes swiftly. This on-demand scalability is made possible through the inherent flexibility of cloud computing technology.
The operational flexibility of cloud computing allows businesses to scale at a significantly reduced cost compared to more traditional resource-intensive methods. As a result, cloud computing empowers businesses with cost-effective flexibility to navigate the dynamic demands of the modern market.
7. Lowered Complexity Of IT Infrastructure Management
Executives and business leaders often grapple with the task of allocating resources to research and development (R&D) for innovative solutions, all while effectively managing and securing their organization's intricate IT infrastructure.
Cloud service providers take on the crucial role of securing and managing the IT infrastructure, relieving organizations of this responsibility. Consequently, businesses can redirect their resources towards driving operational scalability in various other domains.
By embracing a cloud computing environment, organizations unlock additional resources that can be channeled towards essential areas like business development, enhancing customer experience and relationships, and experimenting with new growth strategies. This strategic shift empowers businesses to focus on key initiatives, fostering innovation, and propelling growth.
8. Multiple Service Offerings
The landscape of cloud computing includes four primary deployment models: public, private, hybrid, and community. When formulating a cloud strategy, it is crucial to carefully consider the advantages and disadvantages associated with each deployment model.
In recent years, a notable trend in the industry has been the increasing adoption of hybrid cloud approaches, which allow organizations to leverage multiple service providers rather than being locked into a single provider.
Furthermore, there are three main cloud service models to be aware of: SaaS, PaaS, and IaaS.
- SaaS (Software as a Service): encompasses popular platforms like Dropbox, Google Apps, Slack, and Gmail. It refers to software applications accessible via the Internet.
- PaaS (Platform as a Service): includes cloud platforms. PaaS providers enable organizations to develop custom technical solutions through the cloud, eliminating the need for extensive infrastructure requirements during the development process. PaaS is commonly utilized for web application development and can also offer extension development capabilities for certain SaaS applications like CRM and SCM.
- IaaS (Infrastructure as a Service): IaaS providers offer scalable cloud-based computing resources, including servers, data storage, networking, virtualization, and disaster/data recovery capabilities.
Many SaaS applications, such as CRM (Customer Relationship Management) and SCM (Supply Chain Management) apps, often incorporate PaaS functionality. This allows users to develop custom application extensions tailored to their specific needs. Moreover, numerous cloud computing service providers offer both PaaS and IaaS functionality to cater to diverse requirements and provide comprehensive cloud solutions. Understanding the distinctions between these cloud service models and deployment models is essential for making informed decisions when implementing cloud solutions for your organization.
Cloud deployment models & service models
9. Strong Data Protection
Contrary to concerns raised by skeptics, moving your digital assets to the cloud does not make your company more vulnerable to cyberattacks. In fact, cloud computing provides a secure IT platform that is at least as secure, if not more secure, than traditional in-house hardware setups.
While some security breaches in the cloud may occur due to human error, rather than technical flaws, reliable cloud service providers offer robust security measures, including automatic data encryption. By leveraging dependable servers and advanced security protocols, the cloud minimizes the risk of cyberattacks, ensuring the protection of your valuable data.
10. Eco-Friendly
By adopting cloud computing, your organization can actively contribute to reducing its carbon footprint, especially if you have established Corporate Social Responsibility (CSR) policies. The shift to cloud computing significantly lowers energy consumption as your company shares resources with other organizations across various industries.
Moreover, cloud computing enables your IT team to work remotely, saving time and resources while further reducing your organization's environmental impact. Embracing cloud technology aligns your business with sustainability goals, fostering a greener and more eco-friendly approach to operations.
Final thoughts
In conclusion, cloud computing has become an integral part of the modern business landscape. It offers numerous benefits such as cost-effectiveness, scalability, flexibility, enhanced security, and the ability to drive digital innovation. With a global market value exceeding billions of dollars and the majority of organizations already adopting cloud solutions, it is clear that the cloud has revolutionized the way businesses manage their IT infrastructure and leverage technology for success.
As the cloud continues to evolve and incorporate emerging technologies like AI and IoT, its impact on business growth will only intensify, providing new opportunities for organizations to thrive in an increasingly digital world. Embracing cloud computing is no longer just an option, but a strategic imperative for IT managers seeking to stay competitive, agile, and future-proof their organizations in the dynamic landscape of the 21st century. By harnessing the power of the cloud, IT managers can unlock new levels of efficiency, innovation, and business growth, positioning their organizations for long-term success.
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