In this strange times the world has noticed Cloud’s advantages and possibilities, and so here are the main benefits that are to explain why its adoption is so widespread.

Definition

Cloud computing is the delivery of computing services — including servers, storage, databases, networks, software, analytics, and intelligence — over the Internet, to offer faster innovation, and flexible resources. Typically, you pay for the cloud services you use, which helps to lower operational costs and scale as your business changes.

What can be done in the cloud?

• Software development — web, mobile, and API
  
• Application testing
  
• Data storage and backup and recovery
  
• Data analysis (i.e. snowflake cloud data warehouse)
  
• Audio and video streaming
  
• Deployment of Artificial Intelligence
  
• Software on demand

Most of the services fall into one of four categories:

IaaS — infrastructure as a service is one of the most popular cloud computing services. In the case of IaaS, the company rents the entire IT infrastructure, i.e. servers, virtual machines, operating systems, as well as warehouses. Typically, costs depend on the usage.

PaaS — the platform in question is a cloud computing service that provides a digital environment on demand to develop, test, but also deliver all types of applications. It also allows the client to manage them. PaaS has been designed to enable developers to create any type of mobile or web application efficiently without any need to worry about configuring server infrastructure etc.

SaaS — is a software that works as a method of delivering all types of applications via the Internet based on the subscription model. SaaS is delivered as a cloud hosting solution. In this case, the provider of SaaS hosts the application with all essential infrastructure which is necessary to manage and maintain it (i.e. any updates).

FaaS — This solution overlaps with PaaS, but processes operations in the serverless model that allows the client to focus on creating various types of application functionalities. The entire system is created without using time to manage servers or any type of infrastructure. The serverless architecture is highly scalable with resources that can be used when a specific function is needed.

Benefits

Costs

Cloud computing eliminates costs related to hardware and software purchase as well as maintaining the entire in-house infrastructure. Clients take advantage of a pay-as-you-go system, which means they pay only for resources they use based on a subscription plan. It is also worth noting that migrating to the cloud is reasonably priced in comparison to upgrading legacy systems. Furthermore, thanks to it, companies tend to move from capital expenditure (CapEx) to operating expenditure (OpEx), allowing them to avoid large increases in IT spending, which would traditionally be seen in new projects.

Scalability

Thanks to the cloud, resources can be optimized and adjusted to the current business situation, being beneficial for both beginners and incumbent players. Depending on the company’s needs, the computing power can be freely reduced or increased. Regardless of whether you are planning an Agile transformation or your company has already refined structure, business needs scalability, especially in situations that require a lot of flexibility. Yet, compared to in-house infrastructure, cloud computing gives much more possibilities and quick access to resources they need.

Security

All files stored in external servers are encrypted, ensuring 100% security of data in a cloud — as a result, information is less accessible to hackers or anyone with no authorization. It not only protects information from leaking out but also provides extensive access options. Thanks to different locations of data centres, it guarantees access to all stored data, as well as the reliable operation of the application in any situation. Moreover, automatic backups eliminates the possibility of human error. According to RapidScale, 94% of businesses claimed to improve security, and 91% said that due to the impact of cloud solutions they were able to meet government compliance requirements much easier.

Mobility

All data is accessible from various devices, including mobiles, which allows improving communication, collaboration, and workflow in any organization. That, in turn, promotes efficient work during business trips. Through the cloud, employees are also able to work from home, which is a popular solution during the pandemic era. What is more, this flexibility has a positive effect on the work-life balance and the productivity.

Disaster Recovery

Enterprises that are using cloud services no longer need complicated disaster recovery plans. Cloud computing service providers deal with most problems by themselves doing it much more efficiently. As many use cases show, the entire process finishes four times faster than companies that were using in house infrastructure, and it works for all kinds of emergency scenarios — from natural disasters to power outages. What is more, using the cloud ensures access to resources is always available, even if devices like laptops or PCs, are damaged.

Productivity

An in-house infrastructure typically requires a lot of work, including configuring hardware, installing software patches, and performing other time-consuming day-to-day activities. By leveraging projects on cloud computing, there is no need to do many of the aforementioned activities, allowing IT teams to focus on key business objectives.

Sustainability

Companies using the cloud, utilize only the computing power they need, which, in turn, reduces their carbon footprint. Furthermore, taking advantage of the cloud solutions reduces energy consumption and carbon emissions by at least 30% compared to the use of on-site servers. Again, SMEs benefit the most: for small businesses, the reduction in energy consumption and carbon emissions is likely to be 90%. What is more, data centres run by major cloud service providers need to meet strict environmental standards. For instance, Amazon, with its AWS, announced that the company will achieve 100% renewable energy by 2030, as well as to reach net-zero carbon by 2040.

Control

Working with external agencies or clients often requires sharing many files. If a business doesn’t use the cloud, employees have to send files back and forth via email, which means only one person can work on a file at a time, whereas cloud computing allows companies to keep all files in one central location so all work can be done from one central copy in one format. This entire process promotes collaboration, which increases efficiency and improves the company’s bottom line.

Automatic updates

Cloud users don’t have to worry about updating their software regularly. Cloud-based applications automatically refresh and update themselves, instead of engaging IT departments and forcing them to perform a manual update. Thanks to that, companies can relocate their resources and IT staff to focus on performing tasks related to growing revenue.

Reliability

Building secure and reliable infrastructure costs a lot, with a hundred million euros spent per facility. Then, no wonder why cloud service providers emphasize the reliable infrastructure of their data centres — it is not only an advantage but even a necessity because it determines the business success of the investment. Thus, there is no such thing as a workstation failure in the cloud. Of course, servers in data centres also break down, yet their tasks are immediately taken over by other machines ensuring continuity of a service for a client.

Key takeaways

Many use cases show that only enterprises that can adjust their operational capacity to the changing conditions will be able to thrive in the current business environment. For instance, the inability to serve a growing number of customers will always result in financial loss. Yet, the only way to prevent the situation from happening is to adopt the Cloud Computing model. Its implementation reduces the risk of losing revenues and losing customers. Flexibility of response allows the company to maintain an advantage over competitors who do not have such flexibility and to minimize the operating costs incurred.