In the ever evolving corporate environment of today, cloud computing has fundamentally changed how businesses operate and add value. Because of the many advantages that cloud computing services offer, industry experts anticipate a sharp rise in their uptake and expansion by 2024.

However, what are the precise advantages of cloud computing and how may they propel your company to success? We’ll look at 12 key benefits that a business may get by implementing cloud infrastructure in this article.

What is Cloud Computing?

The usage of hardware and software that is delivered over a network, typically the Internet, is referred to as cloud computing. The phrase originates from the use of a cloud-shaped symbol that symbolizes the abstraction of a relatively complicated infrastructure that makes it possible for hardware, software, computing, and remote services to function.

In a nutshell, cloud computing is internet-based computing. Previously, individuals would use software that they had downloaded to run apps or programs on a physical computer or server within their building. People can access the same kind of applications online thanks to cloud computing.

The foundation of cloud computing is the idea that primary computation occurs on a machine, frequently located remotely, that is not the one being used at the moment. Remote servers, sometimes referred to as cloud servers, store and handle the data gathered during this process. This implies that less effort is required by the device that is accessing the cloud.

Cloud servers free up the memory and processing capacity of individual computers by remotely hosting platforms, databases, and software. With login credentials obtained from the cloud computing provider, users can safely access cloud services.

Without without realizing it, many people are already using a variety of cloud computing services; social media sites like Facebook and Instagram, as well as apps like Gmail and Google Drive, are all cloud-based. Users transmit their personal information to a server stored in the cloud, which keeps it for later use. For organizations that need secure internet network connections to access large volumes of data, these programs become even more important, even though they are useful for personal use.

Some executives are still apprehensive about implementing cloud computing solutions for their companies, even in spite of the obvious benefits. In order to allay any concerns, we will outline the top 12 benefits of cloud computing for businesses below.

1. Cost Optimization 

Concerns about the expenses associated with transitioning to cloud computing are common. However, those contemplating the pros and cons of embracing the cloud must look beyond the initial price tag and factor in the Return on Investment (ROI).

Once integrated into the cloud, the streamlined access to your company’s data translates into savings in both time and money during project startups. For those apprehensive about paying for unnecessary features, most cloud computing services operate on a pay-as-you-go model. This implies that if you do not utilize the full spectrum of cloud capabilities, you won’t incur unnecessary costs.

This pay-as-you-go system extends to the data storage space required to cater to your stakeholders and clients. It ensures that you pay only for the space you actually need, eliminating charges for any unused storage. Collectively, these considerations contribute to lower costs and increased returns.  

2. Security 

Security remains a top concern for business owners. Cloud computing emerges as a solution to alleviate this stress. Historically, concerns have been raised about the vulnerability of cloud-based platforms to hacking. Nevertheless, the robust encryption employed by the cloud significantly diminishes the risk of data theft.

Organizations express trust in cloud computing, with projections indicating that by 2025, global data storage on the cloud will surpass 200 zettabytes. 

3. Flexibility 

Your business’s focus is finite, and if current IT solutions demand excessive attention to computer and data-storage issues, it becomes challenging to concentrate on business goals and customer needs. Outsourcing IT hosting and infrastructure management to an external organization frees up time for aspects directly impacting your bottom line.

Cloud hosting offers greater overall flexibility compared to local servers. Additionally, for businesses requiring extra bandwidth, a cloud-based service can instantly meet the demand, eliminating the need for a complex and costly IT infrastructure update. This enhanced freedom and flexibility significantly enhance organizational efficiency. In an InformationWeek survey, 65% of respondents highlighted the ability to quickly meet business demands as a key reason for transitioning to a cloud environment. 

4. Mobility 

The defining characteristic of the cloud is its widespread presence, making mobility its key feature. Through cloud connections, businesses can effortlessly establish remote connections using various devices such as smartphones, iPads, and laptops. This facilitates swift responses, instant solutions, and continuous connectivity.

This epitomizes convenience, and as per GlobalNewsWires, it comes as no surprise that the cloud computing industry is projected to be valued at $1,949 billion by 2032, primarily attributed to its mobility features. 

5. Insight 

In the digital age, the saying “knowledge is power” transforms into the more accurate assertion: “Data is money.” Valuable insights within customer transactions and business processes await identification and utilization. Navigating this data challenge is eased with the right cloud computing solution. 

Read Also: How to Choose the Right Business Products for Your Needs

Cloud-based storage solutions with integrated analytics offer a comprehensive view of your data. Storing information in the cloud facilitates easy implementation of tracking mechanisms and customized reports for organization-wide analysis. Leveraging these insights enhances efficiencies and aids in formulating action plans to achieve organizational goals. For example, Sunny Delight, a beverage company, increased profits by about $2 million annually and reduced staffing costs by $195,000 through cloud-based business insights. 

6. Collaboration 

Whether your business has two employees or more, prioritizing collaboration is essential for effective teamwork. Cloud computing streamlines the collaboration process, allowing team members to easily and securely view and share information across a cloud-based platform.  

Some cloud services also offer collaborative social spaces, fostering connections among employees across the organization, thereby increasing interest and engagement. While collaboration is feasible without a cloud computing solution, it will never be as straightforward or effective. 

7. Quality Control 

Few factors are as damaging to business success as poor quality and inconsistent reporting. In a cloud-based system, all documents are stored in a unified location and format. With everyone accessing the same information, you can ensure data consistency, prevent human error, and maintain a transparent record of revisions or updates.  

Conversely, managing information in silos may result in employees inadvertently saving various document versions, leading to confusion and compromised data quality. 

8. Disaster Recovery 

The most significant disaster a company can face is the “loss of data”, with a ransomware attack costing approximately $4.54 million. However, the cloud serves as a secure repository for backed-up data, enabling companies to recover lost data effortlessly. According to Statista, about 85% of technical executives consider security a significant challenge.

The cloud reduces the time wasted on technical errors, server delays, and other drawbacks, amounting to almost 6 hours a week, equivalent to a full day lost. Consequently, the cloud aids businesses in optimizing data recovery, saving both time and effort. 

9. Loss Prevention 

Without a cloud computing solution, your organization’s valuable data is tethered exclusively to the office computers it resides in. While this may not initially appear problematic, the reality is that local hardware issues can result in permanent data loss. This is a more common problem than often realized; computers can malfunction due to various reasons, such as viral infections, age-related hardware deterioration, or simple user errors. Moreover, there’s the risk of misplacement or theft.

Not being on the cloud exposes you to the possibility of losing locally saved information. In contrast, a cloud-based server ensures the safety and easy accessibility of all uploaded information, even if the computer you regularly use encounters issues, as it can be accessed from any computer with an internet connection. 

10. Automatic Software Updates 

Imagine being engrossed in an important project only to be interrupted by a “Software update required” message. Manual updates can be tedious, but cloud-based applications address this issue. With automatic software updates and regular upgrades, users can now redirect their time and energy toward core business operations.

Businesses no longer need their IT departments to handle manual updates. This saves both money and time that would otherwise be spent on external IT consultation. 

11. Competitive Edge 

Despite the growing popularity of cloud computing, some still opt to keep everything local. While that’s a valid choice, it puts them at a clear disadvantage compared to competitors leveraging the benefits of the cloud. Implementing a cloud-based solution ahead of your rivals positions you further along the learning curve by the time they catch up.  

A recent Verizon study revealed that 77% of businesses consider cloud technology a competitive advantage, with 16% deeming this advantage significant. 

12. Sustainability 

In the current environmental landscape, merely placing a recycling bin in the breakroom no longer suffices for organizations claiming to contribute to planetary well-being. True sustainability requires comprehensive solutions addressing wastefulness at all business levels. Hosting on the cloud proves more environmentally friendly, resulting in a reduced carbon footprint.

Cloud infrastructures promote environmental proactivity by powering virtual services rather than physical products and hardware. This approach minimizes paper waste, enhances energy efficiency, and, by enabling employee access from any location with an internet connection, contributes to a reduction in commuter-related emissions.  

Reduced IT expenses are a result of the cloud’s improved performance, dependability, flexibility, and efficiency. Additionally, it encourages innovation, which helps businesses integrate AI and machine learning into their strategy and achieve faster time-to-market. These main advantages can then result in other benefits including increased productivity, assistance for remote workers, and better operational efficiency.

Understanding that starting a cloud journey doesn’t have to be a “all-or-nothing” situation is essential. For example, many companies discover that using a hybrid strategy allows them to operate in an environment that is in line with their overall business goals while also increasing the capacity and capabilities of their current infrastructure.

How is Cloud Used in Business?

Cloud computing has 3 main elements.

Cloud-based software refers to computer programs that use the internet to deliver digital tools and store documents, records, digital assets and data on remote servers or computers in data centres. It is often referred to as Software as a Service (SaaS).

Examples

• Internet banking
• G Suite (word processor, spreadsheet, email, file storage)
• MYOB (accounting software)
• Dropbox (file storage)
• Canva (design and presentation tools and templates)
• Salesforce (customer relationship manager)
• Zoom (video conferencing).

Cloud-based infrastructure refers to remote computers or data centres that you are able to use for computing, storage, and networking on demand, on a pay-as-you-go basis.

Examples

• DigitalOcean
• Linode
• Amazon web services (AWS)
• Cisco Metacloud
• Microsoft Azure.

Cloud-based platforms refers to complete development and deployment environment. It is typically used to build, test, deploy, manage and update software that is written for your business. These platforms are typically based in remote data centres.

Examples

• AWS Elastic Beanstalk
• Google App Engine
• Apache Stratos
• OpenShift
• IBM Private Cloud
• Cisco

Key areas to consider when choosing a provider are:

• availability of data and business functionality
• protecting data from unauthorised access
• handling security incidents
• business continuity and reputation in the event of an incident.

For many small businesses, using existing cloud-based software will meet many business needs. For businesses with needs beyond cloud-based software, IT solutions may involve cloud-based infrastructure or platforms.

Once a suitable provider has been identified, a contract including a service level agreement is recommended.

Consider including provision for:

• who has access to your customer’s data on the provider’s side
• how security is managed by the provider in order to prevent customer data loss or how it could be used
• any ISO (International Organization for Standardization) standards covered by the provider and independent verifications of the standards adhered to by the provider.

Discuss your needs with your IT, business, and legal advisers to ensure the contract protects your business.