Why Are Companies are Running To The Cloud?
As many of you may have noticed cloud computing is growing in popularity and use as more businesses focus on remote work. What you might not know is exactly how much money the cloud makes up in enterprise tech spending.
Public cloud spending is projected to grow 18.4 percent in 2021 to $304.9 billion. That’s an increase from $257.5 billion in 2020.
Businesses experiencing lock-downs, shut-ins, and who were forced to work remotely are the main cause of the increase. With these physical spaces closed, companies had to think fast and move to cloud-based solutions to remain productive.
Cloud based platforms allowed businesses to access files and data they couldn’t get to in a shuttered office building.
Migrating towards the cloud has a number of benefits for businesses. The cloud cuts IT solutions spending, improves security, increases productivity, and boosts efficiency.
The Pandemic Made Cloud Computing Inevitable
The COVID-19 pandemic shifted organization’s focus on optimizing IT costs, thus allowing them to support remote employees. They also needed to save money on operational costs and infrastructure spending as the lockdown impacted the global economy.
Companies like Capital One and American Airlines have adopted the cloud for precisely the benefits we’ve mentioned. Capital One moved to the cloud because they wanted enhanced security and to save money. American Airlines, on the other hand, switched over because they wanted to improve customer service experience.
Luckily, the cloud was a clever way of accomplishing those goals. It’s no wonder that over 70 percent of organizations using the cloud today plan on increasing their cloud spending, according to Gartner.
The largest sector that showed the most growth was Software-as-a-service (SaaS). Platform as-a-service (PaaS) is predicted to grow at a faster pace as well. PaaS provides businesses with application software that allows them to work from anywhere. Nerds Support, for example, provides its clients with the OS33 cloud platform. A reliable cloud platform allows remote workers a scalable, high performance, series of cloud-based applications that emphasize collaboration, security and practicality.
Managed IT services companies, better known as Managed Service Providers (MSP’s) are a good option for cloud services. Depending on the type of cloud experience you’re looking for you can choose a public or private cloud.
The Costs of Ignoring the Cloud
Businesses are investing in cloud and the trend will most likely continue as cloud solutions provide increased collaboration, mobility, and other technologies that enable remote work.
What’s even better about the cloud is that companies have seen huge savings as well. In recent years there has been a development in a new kind of discipline called Financial Operations or “FinOps” that monitor, evaluate, and measure cloud costs.
Maintaining on premise data centers is becoming expensive. An increasingly data driven environment means that companies need to put money into storage. Such costs could add up and the price might exclude any hidden costs and fees associated with repair or replacement components and hardware.
As successful as a business might be, if data storage goes up and server usage grows other costs go up as well. Electrical costs, floor space, and cooling just a few of the added costs you might not think about when you take on a data center.
As a result, businesses are turning to IT consulting services to learn how to properly utilize the cloud to maximize efficiency.
The Cloud Keeps Businesses Competitive
With so many companies now using the cloud to upgrade their existing services or take advantage of new ones, the cloud is essential to remain competitive. The cloud has become the new normal. No company is going to allow themselves to undergo a lock-down situation without having contingencies in place.
Furthermore, predicting how much money you might for data storage as your company grows is next to impossible.
Cloud hosting, however, has proven itself to businesses. Cloud-based solutions are scalable, on-demand, produce cost effective IT solutions as well as a reliable business continuity plan.
85 percent of enterprises plan on implementing cloud-first principles by 2025. This is according to Gartner research Vice President Sig Nag. In other words, businesses in the next few years will focus on freeing up their IT and resources to deliver effective cloud services.