In their 2016 State of the Cloud Report, Right Scale showed 95% of companies surveyed reported using the cloud in some form. Of those respondents, 18% said they were using the public cloud only, 71% said they were using a hybrid cloud, and 6% said they were only using a private cloud.
As cloud computing is poised to grow to $127 billion in 2017 and $500 billion by 2020, many companies may still be trying to reconcile with the reasons for moving the cloud. Here are just a few of many noteworthy benefits of migrating either partially or fully to a cloud computing model.
1) Getting new products and services to market faster.
Prior to the cloud, the development of product or service offerings was a tedious and time-consuming process, involving enormous amounts of man-hours and internal resources. Not only was the development process also cumbersome, so too was the implementation, making it difficult for companies to get their fully developed and tested offerings to market on time.
Instead of utilizing monumental amounts of time, infrastructure, and resources, the cloud now affords businesses a faster path to market. By moving to the cloud, companies can reduce development lifecycles and provision resources through external service providers, in a scalable way in a matter of minutes instead of taking months to do a roll-out. With the cloud, the focus has now shifted to a company’s processes rather than its internal infrastructure enablement or limitations.
2) The cloud enables fast growth.
According to a report on small business growth, SMBs using the cloud grow at a 26% faster rate than those that do not. Companies that leverage cloud computing tend to be more agile, making it much easier to adapt to changes in their environment, and this makes it easier to modify their offerings to keep up with changes.
Cloud empowered companies are able to provide more scalable solutions to a larger number of customers and increase their opportunities for growth. They are also capable and more prepared to service a broader range of new clients. In fact, the same report shows by moving to the cloud, 77% of SMBs were able to access new markets.
3) Improving process efficiency.
Prior to the cloud, companies were limited in capability and offerings by their internal infrastructure, and their processes were also limited as a result. By moving to the cloud many companies are now able to develop a higher level of process efficiency by spending more time focusing in this area, rather than their internal infrastructure limitations. In doing so, companies can now offer customers higher levels of service and perfect internal processes through continuous improvement efforts.
4) Reduction in IT spending.
With cloud computing, the as-a-service model provides companies of any size the ability to deliver a product or service to their customers without incurring large capital intensive infrastructure costs. Instead, services can now be quickly and cost-effectively provisioned through external cloud-based service providers, translating to a reduction in in-house IT spending. As a result, these funds can now be re-deployed in other areas of the IT department or business where it offers a greater return.
5) Reduction in IT maintenance costs.
In addition to the reduction in IT spending, IT maintenance costs also decrease once services are migrated to the cloud. IT departments no longer need to worry about maintaining equipment or other infrastructure, as this responsibility (make sure to read vendor service level agreements for details) falls to the cloud service provider. As with IT spending budgets, IT maintenance budgets can also be put to better use.