Are you considering making the move to the cloud this year? When it comes to business, cloud computing isn’t something new but is growing. Gartner predicts global public cloud spending to grow at a rate of 21.7% to reach $482 billion in 2022, up from $396 billion in 2021. The leading cause of growth unsurprisingly the pandemic, which has forced certain changes in the industry.
More and more companies are moving to the cloud and refuse to rely on old systems in order to maintain corporate operations. Flexera conducted a survey of worldwide decision-makers, and believe that cloud usage and expenditure will expand in the future. In this article, we will explore cloud services and the benefits of migrating and embracing digital transformation.
Types of Cloud
Before we dive into why cloud computing is beneficial it is important to understand all the different variations of the cloud. Below is a breakdown with examples of the types of cloud computing options currently available.
Software as a Service (SaaS): Software that’s available over the internet. Acumatica, Epicor, Microsoft Teams, SharePoint, and MailChimp are all examples of SaaS.
Platform as a Service (PaaS): Platforms that provide tools needed for application development. An example is Microsoft Azure services.
Infrastructure as a Service (IaaS): Cloud-based platforms using a pay-as-you-go model to provide computing infrastructure. For instance, AWS EC2, Rackspace, Digital Ocean and Google Compute Engine are examples of IaaS.
On-premises: Software and hardware installed in the company’s office or datacenter.
With a better understanding of the types of cloud options available today, we will discuss the benefits of migrating to the cloud.
5 Benefits of the Moving to the Cloud
Improved communication and collaboration in the Cloud
According to Statistics Canada, from April 2020 to June 2021, 30% of employees were working the majority of their hours from home. In contrast, about 4% of employees did so in 2016. With the surge of employees not in the office the need for communication and collaboration skyrocketed. Cloud computing enables employees situated in various locations to collaborate effortlessly. Tools like Microsoft Teams which provides simultaneous syncing, working, and sharing documents and records in real-time, helps increase the collaboration and efficiency of employees.
Increase your business growth and scalability
Many times when businesses are looking or considering a cloud-hosted solution it is commonly due to hurdles with existing legacy software and servers. These challenges tend to impede an organization’s ability to grow and scale. Cloud solutions offer a variety of integrations and flexibility which can optimize your business processes for streamlined workflows.
Improved Security in the Cloud
Cloud providers regularly upgrade their services following the latest industry standards and complying with regulations. Such measures are aimed to reduce the risk of cyberattacks on you as a customer. According to Gartner’s predictions, up to 99% of cloud security failures through 2025 will be the customer’s fault.
Ease of Upgrading and Staying Up To Date
Cloud ERP solutions providers typically manage all system upgrades and updates on an ongoing basis, keeping up with evolving business needs and ensuring customers are using the most up-to-date technology.
Updating or upgrading on-premises ERP software requires more time and may even involve hiring contractors to manage the process. With cloud ERP, updates can take as little as 30 minutes and usually occur during off-hours to prevent business disruptions.
A Reduction In Operational Expenses With The Cloud
With the shift in workplaces moving teams to hybrid or remote offices can mean changes in operational spending. Gartner’s research and studies find that adopting the cloud can save companies a significant amount of money — an overall average of 14% in fact.
Many of the cloud technologies offer a pay-per-use model, in that you are only paying for what you need versus a lump sum with an antiquated pricing structure. One example is Acumatica ERP which is determined by your unique business needs and can evolve as you grow. The key is to pay only for the functionality you need, not for user seats.
Another area of reduced expenses is with your resources, your IT team, specialists, and system administrators will no longer need to dedicate time to backups and hardware maintenance when using a cloud solution.
In light of the current business and technology landscape, the transition away from legacy software and the adoption of cloud computing is obvious next steps. It quickly becomes a must-have step in ensuring business continuity, as well as an investment that pays off rather quickly for the majority of enterprises.