Cloud computing is a technology that allows organizations and individuals to access and use computing resources and services such as processing power, storage, software, and network facilities on-demand through the internet. There are four main types of cloud computing:
- Software as A Service (SaaS)
- Platform as a Service (PaaS)
- Infrastructure as a Service (IaaS)
- Functions as a Service (FaaS)
Small and medium-sized businesses use cloud solutions mostly for online storage and for hosting enterprise and communication systems. According to a report by MarketsandMarkets, the global cloud computing market is expected to reach $623.3 billion by 2023, at an 18 percent CAGR from 2018. This means more businesses are continuing to embrace the idea of cloud computing, and many are migrating from on-prem IT systems to cloud-based infrastructure.
So, why the growing interest in cloud-based services? Well, here are some of the main benefits that SMBs enjoy when adopting cloud solutions.
Cuts IT costs
Switching to cloud computing is an excellent way of reducing your business operation costs by cutting down on IT expenses. Companies are spending more on IT resources than ever before to utilize new technologies in order to gain a competitive edge and streamline workflows. Unfortunately, IT systems are not what you’d call cheap, and this is a problem for small businesses with limited resources.
With cloud computing, you don’t incur the upfront cost of setting up servers and other IT infrastructure since you can use already-existing systems at a much lower overall cost. Plus, you don’t have to worry about maintenance, upgrades, and servicing; saving you the additional cost of hiring specialists to look after your equipment.
And since you only pay a flat-rate subscription for cloud solutions, the IT budget is predictable and manageable.
Boosts collaboration and workplace flexibility
Another great advantage of using cloud computing is increased flexibility and collaboration in the workplace. Cloud services are accessible from anywhere and on a variety of devices, provided there’s an internet connection. You can easily collaborate with remote employees, contractors, and shareholders and monitor your business while on the move. Remote workers can share information, files, and documents and work together on common tasks just like they would in an office.
Cloud computing lets you have a central data and communication platform. Any updates or changes in the data reflect in real-time to all the parties involved. You don’t have to update each independent data hub, which saves time and minimizes data duplication errors.
Scales quickly as the business grows
As your business grows, your IT needs also change. Cloud computing helps enterprises manage to fluctuate IT demands through scalable features and functions. With cloud solutions, you only pay for the features you need, which not only makes IT usage efficient but also means you can scale up or down to satisfy arising needs. You can, for instance, expand your storage space to accommodate a surge in data usage or up the processing power to have things done faster.
Secures business data
Cloud storage provides a secure platform on which to store sensitive enterprise data. Hosting services have robust data storage systems that guard against hardware and software failure, ensuring that your data is always available on-demand. Unlike on-prem workstations and data centers, cloud systems store data in virtualized drives and machines, creating a dependable backup and disaster recovery system.
Data availability is a big part of data security. Bear in mind that a majority of SMBs struggle or fail to recover following a data loss incident. Ninety-three percent of small businesses store their data and backups in the cloud for a good reason. On-prem data storage facilities run higher risks of data loss, leakage, and theft than cloud storage. What’s more, you’re in complete control of data access and usage authorization.
Cloud computing is a real gamechanger for SMBs. Small firms lacking the financial backing to acquire and run expensive IT resources can have access to cutting-edge hardware and software through cloud solutions for a mere fraction of the price. This level the digital playing field for both small and large companies. Digital prowess has become a key performance indicator for many enterprises; in that respect, cloud computing is a convenient and affordable solution to meeting your business’s IT and productivity goals.