If you’re wondering how the cloud can benefit your business, you’re in the right place. Although this technology is constantly rising in popularity, it doesn’t necessarily mean it is the best option for your business.
It’s essential to understand the benefits of cloud computing before leaping.
This article will cover all there is to know about what cloud computing is and how it can potentially benefit your business. By the end, you’ll understand the type of business suitable for cloud computing and whether yours is one of them.
Let’s get started.
Table of Contents
What Is Cloud Computing?
Cloud computing is the delivery of computing resources via the internet.
Instead of buying, owning, or renting physical servers in data centers, cloud computing lets you access technology services, such as storage space and databases, from an on-demand resource provider.
A great example of a cloud hosting service provider is Hostinger, as it comes with the following features:
- Multiple data centers worldwide.
- Unlimited bandwidth and databases.
- 99% uptime guarantee and 24/7 support.
- Free CDN, SSL, domain name, and site migration.
- Daily backups.
Cloud computing has been widely used and will only continue to grow due to its robust and scalable resources. That said, this service is best for websites with high traffic and rapid growth.
For example, health care companies use cloud computing technology to develop more personalized treatments for patients. Also, video game makers are using the cloud to deliver online games to millions of players worldwide.
This shows how flexible a cloud computing system is and how widely your business can use it. Now, let’s see if it would work for your business too.
5 Benefits of Cloud Computing
The global cloud computing market is expected to reach over $620 billion by 2023, meaning its popularity will only be increasing. To understand why so many businesses opt for this option, let’s look at the various benefits it offers.
1. High Speed
The bigger your company, the more website performance matters.
47% of consumers expect web pages to load in two seconds or less. Not only will a slow-loading site give visitors a poor browsing experience, but it can also negatively affect your conversion rates.
Cloud computing can help your site’s performance as it offers low latency and high availability. This happens because cloud hosting service providers store data closer to your user base.
On top of that, cloud computing also comes with automatic upgrades to ensure a smooth browsing experience for users without any lag in the process.
Finally, this technology also allows automatic scaling in the cloud, which will adjust to unexpected traffic spikes.
2. Saves Costs
The cloud computing model has numerous financial benefits. Cost optimization is the primary reason for 47% of businesses’ migration to the cloud.
Here are several areas in which cloud computing can save you money:
- Hardware. Instead of purchasing in-house equipment, hardware is left to the service provider. This is beneficial for companies that are consistently growing since upgrading equipment can be expensive.
- Maintenance. Cloud computing reduces the need for in-house IT staff because the hosting service provider takes care of the maintenance, repairs, and upgrades for the server and other hardware.
- Expense. Cloud solution offers a pay-as-you-go pricing model, where clients only pay for the resources they use.
Scalability refers to the ability to increase or decrease resources to fulfill businesses’ changing needs.
While a traditional server system generally comes at a set size, cloud computing delivers resources via on-demand employment. This allows companies for an easier, faster, and more efficient way to scale resources.
With cloud computing, there are three types of scalability:
- Horizontal scaling. Refers to the changes made to an existing physical server to accommodate the shifting needs.
- Vertical scaling. Adding additional cloud-based services and resources to expand the company and facilitate more complex needs.
- Diagonal scaling. A combination of horizontal and vertical scaling, which is often favored by businesses due to its versatility.
Scalability benefits businesses that expect sudden traffic increase, gradual growth, and cost-effective storage increase.
Aside from network performance and scalability reasons, Gartner predicted that through 2020 the cloud infrastructure would have at least 60% fewer security incidents than traditional data centers.
Here are several ways cloud computing can increase security online:
- Protection against DDoS. Cloud solutions protect against DDoS by monitoring, absorbing, and dispersing attacks to minimize risks.
- Data security. With the rise of remote working, employees now access and share files from different locations. If not handled securely, this can lead to data leaks and malware infestations. Cloud services encrypt data transfers and allow for a collaborative and secure environment.
- Physical security. Cloud solutions address disaster recovery by storing data in multiple locations and protecting it with automatic backups.
- Patches and updates. Unpatched software is the leading cause of malware infection. Due to that fact, cloud providers regularly install patches and updates.
The cloud computing model improves organization workflow as files and documents are kept in the cloud, which makes them accessible from anywhere at any time.
Additionally, updates are real-time. Therefore, employees can work on a project and have the latest version available for other team members to see. This eliminates miscommunication and the need to send updated versions to all necessary team members.
In line with that, the cloud encourages higher participation levels. Team members can provide input, make comments and suggestions whenever an idea comes to mind.
The cloud also improves access to large files. Traditionally, email servers can’t handle large documents such as audio or video files. Meanwhile, the cloud can store large files that are accessible to all.
Through the cloud, there is no delay in receiving or distributing files. Additionally, the documents are kept safe in a centralized location.
Some famous software examples that use the cloud computing model to help with collaboration include Google Workspace, Slack, and Dropbox.
Cloud computing offers a secure, scalable, efficient, and collaborative environment for your business. With it, you can also save on expenditures because you’re only paying for the resources you’re using.
So if your business is increasing or working in a global environment, migrating to the cloud is worth considering. Good luck on your business journey.