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Various Business Benefits of using Cloud Computing

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Global spending on cloud system infrastructure services is predicted to grow to $81 billion by 2022. -Gartner

Cloud computing technology provides versatility and agility to business operations. It comes as no surprise that 80% of companies report operation improvements, while 94% of companies report improvements in online security, after migrating their data to the cloud. This article will take you through the concept of cloud computing, its various types and the business benefits of cloud computing that is leading to its increased adoption, worldwide.

What is Cloud Computing?

Cloud computing delivers computing services like data storage, databases, servers, networking, analytics and much more over the web. The whole idea of cloud computing is to help companies with faster innovation, flexible resources, and better storage investments. Rather than owning the physical computing infrastructure or data centers, companies can rent access to the above-mentioned services from a cloud service provider, on a pay-per-use basis.

Cloud computing services run on an interconnected network of data centers that are regularly upgraded with security patches and the latest generation of software and hardware updates. This caters to faster data load time, lesser down-times, better security and 24*7 data accessibility.

Common examples of cloud computing include- Netflix, a popular video streaming giant, uses cloud computing to operate its video streaming service. Music streaming services like Amazon music and Spotify also operate off the cloud.

Types of Cloud computing

The 3 main types of cloud computing models include:

#1 Public Cloud

  • Public cloud is purely owned and operated by third-party cloud service providers
  • Service providers are responsible for delivering computing resources like servers and storage
  • The cloud provider manages the cloud infrastructure and supporting components
  • Public cloud is used when computing resources need to be shared by hundreds or thousands of people. For instance, Google product suite, Microsoft Azure, Amazon AWS are cloud computing technologies where multiple stakeholders can work at the same time.

#2 Private cloud

  • Private clouds services are designed to be accessed only by selected users.
  • Companies decide where their data will be held and they build the infrastructure in a way that is feasible to business requirements
  • Private cloud is used to control access to highly sensitive data, by meeting regulations and industry-based criteria. This can include storing medical records, government records, classified information, and other confidential information. More often than not, these are cloud computing resources adopted exclusively by single businesses/individuals.

#3 Hybrid cloud

  • Hybrid cloud combines public and private cloud functionalities
  • Data can be transmitted and shared between the public and private cloud using a hybrid approach
  • Hybrid cloud provides greater business flexibility, more deployment options and a better security and compliance architecture.
  • Example of Hybrid cloud is when any business or individual wants to store confidential information on their private cloud, and keep the general, customer-facing data available on a public cloud.
Business Benefits of Cloud Computing

Let’s take a look at some top reasons why companies are adopting the cloud computing model:

Efficient Scalability

Cloud servers offer better bandwidth and almost unlimited storage space. Businesses can change their cloud storage plans irrespective of whether they scale up or down, depending on their growth. In case of physical data storage, this is an issue in terms of buying equipment to increase storage. In case the business scales down suddenly, this equipment is of no use anymore. And hence, the capital involved in buying this equipment goes to waste.

Round the Clock Accessibility

With cloud computing, employees can access applications and data anywhere and at any time, as long as a stable internet connection is available. Cross functional teams can easily collaborate with each other, making it simpler and faster for employees working in different geographical locations to access information. Cloud technology also guarantees website speed and minimises downtime, ensuring that your customers always face a smooth service.

Better Data Security

Most cloud service providers offer regular system updates, round the clock maintenance of cloud servers and security patches. This takes away the load from businesses that usually spend time and money performing these tasks in house. There has also been a gradual growth in cloud security tools, with advanced functionalities that can monitor data moving to and from the cloud and also between various cloud platforms. These tools are programmed to identify fraudulent use of data in the cloud, unauthorised access of data, and virus/malware issues.

Faster Data Backup and Disaster Recovery

Cloud computing guarantees reliable disaster recovery and data backup solutions.The cloud is designed in such a way that data stored in it is mirrored across multiple servers on the cloud provider’s network. This means that if one server fails, data is instantly backed upon the mirrored servers. An instantaneous turn-around-time after a failure, minimises security risks and maintains smooth business continuity.
Additionally, cloud servers also eliminate the cost and space of setting up a physical server. With physical storage solutions, companies have to invest time and money to formulate disaster recovery plans and mitigation measures to back up compromised data.

Capital Savings

When data is stored on physical servers, companies have to incur costs involved in in-house storage equipment, software and hardware updates, 24*7 electricity for power and cooling of servers, IT experts for managing the infrastructure, disposing of hardware or software when it is out of date and the actual cost of the physical storage space. Cloud-based services, on the other hand, are deployed on a pay-per-use basis, which means businesses can rent cloud storage space depending on their growth, and scale down in case business sees a slack period. Plus, there is no need to rent a physical space to buy and store storage equipment.

Final Thoughts

Cloud technology eliminates the need to buy servers and invest in the multiple overhead costs that come with it! Cloud services help companies achieve business agility with data accessibility, scalability and security.

To know more on how our team of experts can help your business scale up with the cloud, send an email at contact@fargowiz.com or submit the below quotation form.

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