Reasons Companies Choose Cloud

Frost and Sullivan, a top research analyst firm has released a study that has taken the world of IT by storm. As per the above study, companies in the mid-size range are fast adopting the use of cloud computing. Mid-size companies are those with employee numbers ranging between 100 and 500. The study highlighted nine major reasons why this is the case. Here are those reasons and why they are applicable to your company as well.

The cost of operating a data centre facility is exorbitant

Many companies realize that on premise data centres are unable to provide them with the services that they need adequately as the companies grow. There is an escalating probability of disaster stemming from the fact that these on premise systems lack the redundancies and capacity needed to address their needs. On premise data centres utilize old and almost obsolete software, ancient hardware, and they lack redundancies for networking and power. As the company grows, the cost of an outage of service is too high for the company to risk.

Ensure business continuity

Business process inefficiencies, bottlenecks, and lags are easily bearable for a smaller company. However, as the company grows larger, these tend to pile up and the cumulative effect is felt on the bottom line. Cloud outsourcing allows companies to focus on their core objectives and competencies while having professionals who have the capacity handling the IT aspect.

Disaster recovery preparedness

Computing is a fundamental aspect of modern business operations. As a result, the failure of all or part of an IT infrastructure is highly detrimental if not catastrophic to a company. IT infrastructure can fail due to anything ranging from software issues to natural disasters and even terrorist attacks. The cloud is built with redundancies to ensure that disaster recovery is a seamless and easy process.

Increased return on investment

A feasibility study done by a mid-sized company will inevitably show that the cost of leasing data services from the cloud is cost efficient. Furthermore, when compared against the return provided, the return on investment ratio is very high due to the lowered costs.

Ensure security and compliance

Increased corporate espionage and cyber-attacks have meant that the security of a company’s data is always in question. Internal IT departments would require massive resource investment to be able to deliver the same level of service that the Cloud Service Provider staff would. Furthermore, as this is their core area of operation, the cloud service provider is likely to have better security systems. They will also invest in developing capacity both in improved technology and expert capacity.
Additionally, government as well as industry are issuing guidelines and standards which compliance with is mandatory or nearly so. Managing compliance is easier when outsourced to a managed cloud service provider.

Eliminate upgrade and acquisition costs

Proper computing hardware is expensive to acquire. Companies end up acquiring hardware they cannot fully utilize or that is too little to meet their needs as they balance financial concerns. Where the company needs to try out an idea or new concept requiring dedicated IT infrastructure this may mean an investment that will later go to waste. Outsourcing IT needs to the cloud addresses these concerns.

Convert capital expenditure to operating expenditure

From a financial standpoint, it makes more sense to lease than to acquire. Planning for operating expenses is much easier. Moreover, operating expenses do not require elusive and exorbitant financing. Operating expenditure also has the advantage of making it easier for the company to link its expenditure to its needs as a company.

Environmentally friendly operations

Shared use of cloud resources reduces the environmental impact that a business has. Environmentally friendly operation is not only cheaper but is also used as a marketing ploy to the masses. Environmentally friendly operations has a direct effect of boosting profit by reducing costs as well as increasing revenue. The increase in revenue is usually brought about by the positive publicity earned by the company through their green image.

Reduction in IT support staff costs

IT support staff are a core part of any business operation. Outsourcing IT infrastructure needs to the cloud makes it possible for a company to reduce the related costs. The reduction in the costs is not always linked to a reduction in the number of IT staff. The reality is that a shift to the cloud usually means an overhaul of the job description of the IT staff to cloud related needs rather than an actual opportunity to reduce the staff.

A reason that has not been covered but one that must be considered is that of innovation offered by the cloud. Use of the cloud ensures that a company stays on the very cutting edge of information technology. Coupled with the above reasons, it is clear that the future of business computing is to be found in the cloud. A reality many businesses are waking to, is that on-premise solutions are no longer able to meet their needs in a cost effective manner.