Businesses today are increasingly adopting digital transformation initiatives to stay in line with the competition, be it SMEs or large organizations. A key pillar of digital transformation is cloud computing and this is why, organizations are rapidly moving their infrastructure, applications, and services to the cloud to tap the benefits of speed, performance, and scale.
If you are giving a thought to cloud adoption and trying to figure out how the cloud can be beneficial to your business, this article will let you understand why you should be moving your operations and applications to the cloud.
Although, every organization has its own reason to move to the cloud, here are the most common business drivers for cloud transformation.
Reduced Capital Costs
Any organization with on-premise data center need to procure hardware based on its specific requirements. This includes computing, storage, and networking devices. Considering that the hardware has a limited lifespan, it needs to be replaced with a newer one after a certain period of time. Moreover, organizations need to retire and refresh hardware as soon as the new hardware is available to take advantage of improved performance and efficiency, which can be quite costly.
With cloud adoption, you get rid of this capital expense. You only pay for what you are using and can add and release resources as per requirement. In other scenarios, when an organization is planning to extend capacity, it will bring more capital expenditure compared to the cloud.
Productivity Enhancement
Cloud adoption cuts down the lengthy asset procurement processes and thus, the end-user does not need to wait to get their infrastructure ready.
In addition, IT teams can access the cloud portfolio when and where needed, which can help them get rid of building data centers and maintaining hardware.
Unlike on-premise infrastructure where IT team needs to keep on updating individual servers or computers and installing new software licenses, cloud computing allows the IT team to focus on using the cloud to better up business processes throughout the organization rather than responding to employee needs.
Cloud facilitates strong collaboration, customer management, project management, and other cloud tools so that employees can get done more in less time.
In a decentralized workforce setup, cloud deployed collaborative apps, emails, documents, or project management help employees to work together more easily.
Increased Business Agility
Business agility is the ease of delivering better products faster in response to customer demands. Cloud provides the ability to scale the infrastructure up and down depending on business needs. On-demand scalability helps organizations to pay only for what they are actually using.
Updates are more quick and effective in cloud deployment. It also helps employees save their time and focus more on business goals. In case an organization is having a managed cloud service provider, updates can be completed more easily.
New solutions can be deployed and tested more easily in the cloud compared to on-premises. New solutions in cloud give organizations the ability to operate more cost-effectively, have a more responsive environment, and deliver results quickly.
Reduced Operational Costs
Cloud deployment provides opportunities for cost optimization in daily business operations. As stated above, the organization will only pay based on their need and customer demand rather fixed cost from on-premises hardware procured to meet the peak loads and demand.
Cloud deployment with built-in tools delivers the capability to automate preemptive activities. It also helps minimize the time and money spent on lesser value-added deliverables such as query solving, infrastructure set up, procurement procedures, and more.
Reduced Business complexity
Cloud reduces complexities in an organization’s IT operations. It simplifies internal operations, introduces new ways of employee collaboration and workflow, and improves the overall delivery of internal resources.
It facilitates faster and less complex rollout of new technologies or business initiatives. Also, Cloud delivers end-to-end visibility and improves the ability to share, analyze, and act on business data.
So, these were the most common business drivers for cloud transformation. It is not necessary that you have the same requirements or concerns of cloud adoption since it depends on your business need and long-term strategy.
If you are planning or considering cloud migration, talk to our experts to avail a free consultation.
