How Cloud Computing Is Changing the Business LandscapeSteve Dawson
Cloud computing services have completely taken over the business landscape today. All major corporations and even small business operate on cloud services on varying degrees. They outsource their storage, data analytics, security, customer relationship management software, and other functions. It’s not only convenient, but it’s also more efficient and economical to shift to cloud computing in business.
As a result, the world of business has been irrevocably changed due to cloud adoption. Here are a few of the fundamental changes that have occurred or are currently happening.
One of the significant effects of cloud computing in business has been an increase in virtualisation. Fewer devices can now handle a greater load by working off of servers. A single device can run two different operating systems without having the storage or RAM needed to do so. Virtualisation has thus allowed organisations to leverage their limited hardware to accomplish much more than what they could before. It has allowed companies to scale up operations, accommodate more projects, handle bigger workloads, and the like. This opportunity gives small businesses a better chance to compete against their better-equipped competition. In this regard, it has granted more companies increased freedom to tackle projects of increasing magnitude.
Today, over 75% of businesses utilise server virtualisation leading to increased productivity. According to Gartner, companies have reached a saturation point as far as virtualisation is concerned. That’s how transformative the power of the cloud has been.
Harnessing the Power of Data Analytics
Data is the new oil today. That statement couldn’t be true without cloud computing services for businesses. It’s due to the enormous volumes of data which are gathered by companies through the cloud today that it is.
Data can be leveraged to create new products and services, design marketing strategies, and eliminate entire assembly lines. The reason data drives such big decisions is because the cloud allows the harnessing of vast insight along with all the information it holds.
Data warehousing, for instance, allows companies to make better decisions with their data. The analysis of that data by dividing it into demographics helps companies determine their niche. It enables them to target new markets and further exploit old ones. An example is Uber Eats. The food delivery option begun by the ride-hailing service has become hugely successful. The service has now taken in to account different rates of delivery based on geo-location. None of this would’ve been possible without the cloud.
Leveraging the Hybrid Cloud for Constant Uptime
Another great benefit of cloud computing services is constant uptime. By using multiple cloud services to back up data and deliver services, companies have been able to achieve continuous uptime. Tech companies like Facebook and Google, as well as Uber, Lyft, and Microsoft, all provide 24-hour services. These services can function round the clock with zero downtime for most of the year. Any updates or upgrades are installed without the need to shut down all parts of the network.
It is common now that services that appear to be dysfunctional in one region are fine in another. It’s the reason that different services across the world can receive updates at the same time as well. Take, for example, the simultaneous Netflix rollout to 130 new countries on January 6, 2016.
Hybrid cloud setups also provide other advantages such as scalability, custom applications, and emergency services. This way, a business can mitigate its risks.
OpEx Has Overwhelmed CapEx
It’s a staple of cloud service providers to shift a company’s financial structure from CapEx (Capital Expenditure) to OpEx (Operational Expenditure). Companies used to depend on on-premise hardware and software to provide their needs, which can be expensive depending on the software and the provider. Even if the company only needs some features of the software, they have to purchase the software as packaged. In today’s market, customers can now pay for only the services they need and stick to the basics required. It allows companies to put excess CapEx into OpEx, increasing the ROI of the company.
Capital Expenses would lead to high expenditures and spending spiking a few times a year. It could be due to paying for licenses for software or hardware upgrades. It could also be related to expanding storage capacity, adding new hardware, and the like. Now, the tables have completely turned. Updates and additions are included within the services package. Cloud computing only requires that you have the minimum basic requirements to run that software.
The software is optimised to run on the existing devices already owned by the company. The solutions are also designed for the company’s specific needs. Hence, the company is not responsible for the maintenance of the network, the updates, or the optimisation of software. The cost-saving potential here is enormous.
Custom Rather Than Standard Solutions
Cloud computing services for businesses do provide a very standard suite of applications and operating system. However, the cloud affords a high level of customisation for different companies. Data analytics, custom applications, specific preferences are all provided in this setup to those that have custom needs.
It’s the reason why many companies have moved away from standardised solutions. When such a high customisation is possible in the cloud, companies feel it’s in their advantage to demand custom solutions.
Particular examples of this include cloud service providers from Microsoft. Microsoft has transitioned into a services company. It now provides custom business applications and CRMs to companies. These include its Microsoft Office 365 suite. It includes Teams, which helps to bridge communications between business departments and seamless compatibility across all apps.
Each company can demand different limits and upgrade their services if they can pay high enough. It was never possible with the rigid structure of Microsoft’s operating systems before.
Cloud computing has indeed provided the business world with a lot of innovative applications. It’s no wonder that cloud services in Gold Coast have become so popular throughout the decade. Cloud computing will no doubt continue to grow and be adopted by businesses across the world. It’s not only the most economical option, but the most convenient option to scale up and be flexible.