Cloud computing: do you really need it? This will help you decide!
Over the past decade, technology has changed the way many companies conduct their business, allowing an unprecedented level of collaboration, flexibility and productivity. For most industries, the Internet has been the most disruptive tool of this century. in a study Performed by 451 Research, 90% of the organizations surveyed reported that they were already using some type of cloud computing service to increase their business. In the same line, Gartner predicts that the global cloud services market will grow exponentially until 2022, reaching an estimated $ 331 billion.
While taking advantage of these technologies is the goal of many companies today, there can be huge costs associated with infrastructure, talent recruitment and maintenance. Cloud service providers offer a solution to this problem, allowing business owners to pay a monthly price for hardware, Internet infrastructure and other services.
Why companies favor the cloud
In addition to reducing the initial cost of admission, cloud-based services offer a number of advantages related to security, availability, reliability and scalability. To understand why cloud computing has become a multi-million dollar industry in a few years, let's expand each of these benefits.
While data security is essential for the operation of any business, many non-IT companies are not adequately equipped to deal with viruses, ransomware and other attacks. Large financial institutions, for example, have been subject to many security breaches in recent times, with the US bank Capital One, which is in the middle of a data leak controversy in September 2019.
Cloud providers specialize in maintaining a secure physical and virtual environment to ensure that their customers' data is protected in accordance with local laws and regulations. With the introduction of the General Data Protection Regulation (GDPR) in 2018, many companies have to walk carefully on the storage and use of personal information. By leveraging the experience of existing service providers, companies can abstract much of the overall compliance costs at low cost.
Any company with an online presence must ensure that its services are available at all times. However, companies that rely on internal infrastructure often report that this can be an extremely challenging process. Data centers, on the other hand, are specifically designed to migrate workloads in case of failure, which guarantees a constant uptime and a virtually perfect experience for end users.
Business owners also do not have to worry about aspects such as disaster recovery, hardware and software incompatibilities and data loss. Service providers have the resources to build safe deposit boxes and avoid downtime, even in the most serious situations.
In today's fast-paced environment, companies often cannot estimate the exact amount of computing resources they need for a given task. In addition, companies experiencing small explosions of consumer interest may have to temporarily increase their infrastructure. However, buying additional hardware specifically to handle these rare cases can be an expensive and wasteful effort.
Cloud service providers offer a robust and scalable platform capable of handling variable processing or storage requirements. Many providers also offer a pay-per-use plan, so that companies are not forced to pay for services they do not need or use.
The future of the cloud
Around one third of the IT budget of all companies - an average of $ 2.2 million - is already dedicated to services related to cloud computing, such as email and web hosting. Cloud service providers are uniquely positioned to serve this segment of the market, particularly because budgets for digital transformation seem to be rising in many companies. However, identifying these opportunities can be a challenge due to lack of market data.
However, data providers can help mitigate this problem by offering updated information on new and future startups. Oddup , for instance, specialises in providing real-time data on the global startup ecosystem across a multitude of industries and geographic locations. Oddup offers decision-makers proprietary tools like the Oddup Score and the Reference Rating , which estimate the health, potential and valuation of a startup, as well as exclusive startup exploration reports that highlight potentially disruptive companies, and markets and industries that show a growing startup activity.
Data providers can also help with a new challenge that even established cloud service providers face. Some of the world's biggest technology giants are leading the cloud computing revolution, however, the rapid growth of the market means that there is plenty of room for smaller companies with unique services and offers. Currently, Amazon Web Services, Google Cloud, Microsoft Azure and Alibaba to hold The vast majority of the global market share in the cloud. These companies could face strong competition from smaller suppliers with the emergence of new technologies such as machine learning, blockchain and Internet of things (IoT).
This is resulting in the emergence of new, smaller Independent Software Vendors (ISVs). ISVs are both threat and opportunity for the larger players. Consequently, larger companies are on the lookout for disruptive ISVs with whom they can partner or whom they can acquire. Data providers like Oddup aid in identification of such ISVs too, enabling cloud service providers to expand both, their portfolios and client base.
As modern companies continue to generate and process more data, cloud computing will become the main focus of many companies. This fact is especially true for smaller companies and new businesses, which also have significantly less capital at hand and have variable needs. With a growing global emphasis on cloud computing services, we are likely to see an exponential increase in the number of new businesses and companies with Internet access in the coming years.