Cloud computing is transforming IT as it enables business agility, by altering conditions with the available IT resources. The need for mobile technology has become a basic necessity and data analytics has always been a requirement for businesses. This is why some innovative businesses have already made the transition to cloud systems early on.
Cloud computing is normally associated with the ability to reduce costs and improve efficiency, but is so much more than that as it has revolutionized business IT systems. Instead of storing resources on local servers, data has been centralized by storing data on the internet. Cloud-based EPR systems are faster and considerably more responsive, this contributes towards faster business developments because of the speed, compared to that of traditional ‘in house’ systems.
Businesses have come to the time when they need to upgrade IT infrastructure. They formulate a plan and decide a time scale for implementation. Then they realize they need new hardware, which can take weeks to months to setup. In addition, new software is needed which adds further weeks or months to their plan. Some companies also need to convert a large amount of digital files to a different format so they can be used appropriately.
Reasons for the switch
Early adopters of cloud based systems understand the benefits package. They can get ahead of their competitors vastly. They choose to upgrade their systems because they’ve come to a pain point and seek a way to make their current infrastructure work for them, because ‘in house’ systems are incredibly high maintenance. Cloud Computing eliminates the need for an on-call technician to manage your company’s hardware or software. Cloud is more than a service, it’s a personalized to a company’s requirements and is built on trust between companies and their provider.
Implementation and Agility
Cloud Systems are agile, the cost of maintaining old hardware or buy new is a key motivator. Businesses can save dramatically while at the same time see a return on investment. Cloud based systems are fast to set up and are easier to manage. Cloud implementation has a quick implementation time compared to weeks and months. They are also easier to manage and simpler to evaluate business impact. Time to produce details reports is dramatically shrunk and only takes seconds to perform a detailed analysis of your business. The software uses a ‘pay-per-use’ model, a company only pays for what it uses.
Cloud is unlike standard software as it has the ability to grow with your business, therefore being scalable. There is an ability to scale both horizontally, with the amount of applications used, as well as vertically, the use of them. Adding new workstations or new servers takes seconds. When a company needs a higher bandwidth, cloud providers are able to respond immediately. This takes away forecasts for when your system will need to be upgraded next or whether it can cope in high periods of business. Cloud gives you access to the same software that bigger companies use. Meaning that your business does not run the risk of being left behind.
Cloud software brings a whole new level of security. Data never leaves the cloud so, if any of your companies’ hardware is stolen, you no longer have to worry about a security breach. If your business is held across multiple locations you no longer have to refresh the data at each, because it’s all stored at one central location, which can be accessed from anytime, anywhere. This in turn makes your document management and control well-organized. The cloud eliminates the need to keep physical media such as paper documents. If company offices are broken into, there is no need to worry about security breaches, or if a server crashes.
Because business systems and processes are closely linked, it will mean a greater increase of productivity, and this will affect the quality of service provided to your customers. This means that you can remain competitive within your industry. Focus is moved to innovation, research and development. Allowing for business and product/service growth as it no longer has to focus on IT resources.
Cloud Computing as reinvented the cost expenditure of companies as it becomes an easy operational expense, which helps towards making budgeting easier. Companies no longer have to produce costly up front infrastructure expenses and revert to a pay per use method. For small business this is a ‘no-brainier’, as companies no longer have to spend free capital upfront. Licenses are also cost efficient as users only pay for what they have.
Businesses becomes mobile with the cloud, as accessed is made by web browsers. Employees can work from any location, which can reduce office space. This allows both management and employees to live a much improved work-life balance. As well as gaining access to data when it is most needed anytime, anywhere. Cloud provides a new way of thinking, which can alter business models as workflow is greatly impacted.
In summary combining all of these transforming measures is most likely that costs are reduced, having a positive effect on your profitability, if software expenditure, employees, and office costs are taken into account. Cloud providers handle operational activity smarter, faster and cheaper and these results are changing business prospects worldwide.
Cloud Computing is transforming business because;
- Drive Cost Efficiencies
- Better enable mobile workforce
- Improve alignment with customer/partners
- Better leverage data to provide insight
- New product development/innovation
- Develop new business models
- Shift to a global shared services model
- Faster time to market