Cloud computing solves two of the main issues related to corporate finance – data security and disaster recovery. A robust disaster recovery strategy is a must for businesses of all sizes while corporate data on lost laptops causes billions of dollars in annual damages to companies all over the world. Using a cloud-based solution, an enterprise gets the latest version of the software required to run the business and the ability to store business-critical data securely in the cloud. The rise of cloud computing boosted also the development of advanced Software-as-a-Service (SaaS) escrow services where companies can store data and software code and retrieve them immediately in case of disrupted service. Thus, a company using a cloud solution can secure robust business continuity.
10 Reasons Why Cloud-Based Systems Are Replacing On-Premises IT
Cloud-based systems offer:
- An environment that always has the latest software version and security updates
- Always-on availability
- Disaster recovery
- Flexible costs
- Flexible capacity
- Better mobility
- Enhanced collaboration
- Less hardware and software resources
- Document control
- Less environmental impact
The Cloud Allows New Business Models
Implementation of cloud-based solutions offers additional advantages in terms of competitiveness and optimization of corporate processes and procedures. Using one or more cloud-based platforms, a business can link its corporate strategy and goals by integrating planning and modelling to financial consolidation and close. Moreover, by adopting an advanced cloud-based solution, an enterprise can take advantage of new business models that are hard to achieve using an on-premises IT service. For example, a company can reduce the size of its data center and markedly decrease its expenditures on IT maintenance and security.
A cloud-based solution allows for faster development of new features and immediate release of software updates and security patches. The method of centralized maintenance of software and business-critical data results in less costs for businesses. An enterprise can take advantage of the flexible costs of the cloud-based solutions where usually no software license fees are applicable. On-demand SaaS services are also gaining popularity, enabling businesses to tailor a solution to their particular needs.
Mobility and Collaboration
Another reason for an enterprise to move to the cloud is that mobility and collaboration are improved. On-premises IT solutions need significant investment in security software to achieve the mobility provided by a cloud platform. Moving to the cloud also allows employees to collaborate at any time and anywhere, greatly improving overall efficiency. A reliable cloud provider usually maintains service uptime in the range of 99.99 percent, which results in uninterrupted business processes and less costs to maintain on-premises servers, uninterruptible power supplies, and other hardware. Thus, enterprises save on equipment and software licenses, thereby enabling them to put money aside to develop their core business.
Maximization of Resource Utilization
By installing on-premises servers and enterprise software, a company is bound to it and does not have an option to sell it back at the purchase price. However, the cloud is very flexible in terms of resources utilization, and a company can always add or decrease the used capacity depending on the current business needs.
Furthermore, migrating from one cloud platform to another is easier than with on-premises software. On-premises enterprise software may need years to integrate with another platform or transfer data to another application. The cloud eliminates this problem almost entirely by enabling businesses to shift from a capital expense (CapEx) model to an operational expense (OpEx) model. The OpEx model offers marked advantages because there are no long-term financial commitments involved. This model requires zero up-front investment, enabling businesses to start projects faster and to eliminate the financial losses from purchasing an on-premises solution if a particular project is unsuccessful.
Any enterprise needs tight document control that follows certain workflow practices. A cloud-based platform eliminates the need for documents to be sent back and forth between employees, enabling collaboration in real time. There are on-premises solutions that feature such capabilities, but with them, a business should also invest in security solutions that track mobile access and grant access permissions to each individual user. Storing documents in the cloud provides a centralized solution where the vendor secures the data and all employees see one version of the document.
Retaining competitiveness in a global market is hard even for multinational businesses. However, the cloud provides access to enterprise-level solutions at par for both small and large businesses. By having access to the latest software version of business-critical applications small and medium-sized enterprises can compete on equal terms with large corporations in almost any vertical market. Therefore, more and more innovative business models emerge, resulting in healthier competition at a global scale.
Furthermore, the standardized approach offered by the cloud reduces time spent on operational issues, decreases defects and results in achieved business continuity that enables small companies to be as effective as possible. By using a cloud-based solution, a company gets the same service or topology of services continually that in turn translates into the ability to deploy correctly any further applications or application landscapes. This is rarely available through traditional IT services where achieving compatibility and interoperability is harder.
The cloud gradually replaces a bunch of old business models and instead offers greater flexibility, mobility, data security, and business continuity. Some businesses are still reluctant to adopt cloud-based solutions but in the long term, implementation of cloud platforms will give an edge to those who adopted them earlier.
Jorge Sagastume is a Vice President at EscrowTech International, Inc. with 12 years of experience protecting IP and earning the trust of the greatest companies in the world. Jorge has been invited to speak on IP issues by foreign governments and international agencies. You can connect with Jorge on LinkedIn at https://www.linkedin.com/in/jorgesagastume