Cloud Computing is one of the significant cost-cutting tools that global firms are moving forward to adopt. Based on statistics Gartner, Inc., the world’s leading researcher, forecast that 90% of global organizations will be using cloud computing services, bringing a total growth value up to $278.3 billion by 2022.

What is Cloud Computing?

Cloud computing is defined as virtual storage that can access data and programs over the internet instead of the computer’s hard drive. It enables users the customized storage type and resources based on actual capacity needs. The more you need the more you use.

Types of Cloud Service

  1. Infrastructure as a Service [ IaaS ] provides an on-demand IT infrastructure to organizations and enterprise storage systems to support software and applications. It focuses on building the power of processing speed. The customer rents an external infrastructure and the provider is responsible for installing the servers, setting up and running the networks, and storing the data.

2. Platform as a Service [ PaaS ] offers a platform service for software and application. It also encompasses a broad collection of middleware services — i.e. operating systems, integration, database services, web servers, etc. The customer rents the use of the servers and the integrated tools.

3. Software as a Service [ SaaS ] provides services for software and application in this cloud framework instead of installing the software on your servers. SaaS also known as Pay-As-You-Go, enables the customer to rent and use software owned by other providers, delivered remotely, and pay basically on a subscription feeby the number of users and period of use. The users do not need to invest in additional parts.

How does cloud computing help enterprises be more competitive?

  1. Convenient, Anywhere-Anytime: Cloud Service is internet-based storage that users could access through various channels at the same time (e.g. mobile phone, desktop, and tablet) ensures that data and applications will be available anytime, anywhere.

2. Cost Saving & Cost Efficiency: Firms can reduce or cut an IT fixed cost from hardware, servers, or other equipment. The maintenance fee also eliminates when the provider is responsible to build and maintain the system. Companies can achieve economies of scale with the subscription fee model which enables firms to invest as much as using it. Bring Your Own Device (BYOD) policy lets small and medium companies reduce cost by letting their employees use their own notebook, mobile, tablets, and devices in the workplace. BYOD also helps firms reduce costs of software installation and company assets maintenance costs.

3. Reduce time to market: The start of development on in-house technology itself will be slower than using outsource services. The adoption of Cloud Computing helps firms gain a competitive advantage over their competitors and keep up with market demand. It enables businesses to respond quickly to changing business needs in the field of IT.

4. Flexibility: Cloud Service enables businesses to be more flexible. Whenever the economy is booming, the company can immediately expand its business. On the other side, whenever the economy goes down, the company can suspend or minimize the size of its business in a short time.

5. Stability and Security: Cloud services are one of the most secure technologies in the world. The system will be an AI able to select a suitable safe area to store information. Cloud Security is continuously updated with Patch or Database Signature. To detect the system’s vulnerabilities and bugs, you can be assured of your security against cyber attacks and threats. Additionally, cloud storage access is reported and notified to administrators all the time. It is unlikely that the data will be stolen. Nowadays, service providers also adopt IT standards related to Cloud Security to meet global standards e.g. CSA-STAR Level 2 Cloud Security, ISO/IEC 27001 Information Security Management, ISO/IEC 20000, Information Technology Service Management.

Every time companies invest in expanding their business, sunk cost or fixed cost will be unavoided, therefore, fixed costs are the main factor that may cause the company to lack liquidity.

Based on a study conducted by Digital Insight: McKinsey, A Fortune 100 company with a $2.2 billion annual IT spend ($800 million on infrastructure costs alone) was seeking a way to reduce all these mega costs. The company adopted a cloud-first policy for all new applications. The company was able to reduce costs by $150 million within three years.

Cloud Services considered being an important aid in cost management and cost reduction. Consult with an expert today to apply Cloud Services to your business.

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