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Why Is Cloud Computing Important For Business?

The rapid advent of Cloud Computing has been quite synchronous to the rise of online business complexities. Before the introduction of Cloud Computing, businesses would run software applications or programs on a physical computer system or a server within the premises of the organization itself.

However, several businesses were struggling to create their own data centres with the rise in data storage volumes and the cost of hiring a large number of IT professionals for technical maintenance. As the complexity increased, the challenge of maintaining the productivity of the business at a fixed cost became quite impossible to manage. Not with standing the staggering increase in the volume of data transfers that also increased alongside.

Features of Cloud Computing for Businesses

1. Flexibility in Access:

In a recent survey conducted by KPMG, it was found that around 42% of the executives think that flexibility is the primary factor why Cloud Computing is essential to their businesses. The data stored in a cloud system can be accessed from any device with a stable internet connection whether you are at your home, office, or travelling.

2. Cost Savings:

Another remarkable benefit of Cloud Computing over conventional server-based computing is the fact that it bears minimal cost especially concerning maintenance and acquisition of IT re- sources. It cuts down on the variable costs associated with the volume of data considerably and limits surprise collateral.

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3. Emergency Data Recovery:

Cloud computing comes with cloud-based backup and recovery solutions that save time and bring down the costs to recover any data stored in the servers if there is an emergency or disaster at the office premises. It also keeps away third-party IT agents from the server space making it a more secure alternative.

4. Collaboration Efficiency:

Cloud Computing allows businesses to communicate and share data and information with various channels much more easily than conventional methods. It allows efficient collaboration between employees, executives, customers, and enables multiple users to share and work on data simultaneously. It also allows the user to keep a track of changes being made in real-time.

5. Scalability:

Another feature of cloud computing is its scalability. Cloud-based services are ideal for businesses with growing bandwidth demands such as start-ups. If the needs increase, it’s easy to upsize the capacity of the Cloud service, drawing on the service’s remote servers and vice versa.

Cloud Computing for small businesses

Cloud Computing is just as important for small businesses as it is fo large conglomerates. It reduces operational costs and adds to the speed and accuracy of several business processes and the handling of information. It provides the necessarily interconnected pedestal for such small scale businesses to grow and compete with other similar businesses on a global level. It also reduces the cost of acquiring IT infrastructure and its maintenance.

Case Study: Netflix

In today’s world, more and more businesses are starting to remodel their business relying on Cloud Computing services. This change from conventional server-based systems to Cloud Computing has continued to inspire businesses of all types and sizes. It is an innovative solution to the problem of data management and storage.

For instance, consider the example of Netflix as a business that requires IT infrastructure such as computers, networks, servers, data centres, and bandwidth. For Netflix, the amount of IT infrastructure required is directly in proportion to the number of subscribers using its streaming services at any given instant. If Netflix used the conventional business model purchasing physical IT infrastructure and resources, the share of profits would decrease considerably. This is because it is usually a tremendous task to accurately predict the demand for its service in the near or distant future. Hence, it opted for a Cloud-based system offered by Amazon Web Services.

In other words, instead of buying a large volume of IT infrastructure and resources, it paid Amazon Web Services for its IT infrastructure and servers as per its demand. This is the same process followed by most businesses that use Cloud Computing. It prevents excess capital expenditure and reduces maintenance costs and overheads considerably. Cloud computing also allows the business to adjust the variable costs based on the demand for its services or products, depending on the volume of IT infrastructure it requires.

Therefore, businesses of all sizes need to be aware of the benefits of using Cloud Computing services. It is time they chalk a pathway to reduce operational costs and take their business operations to a new global level with Cloud Computing. It is perhaps the newest, most significant innovative practice in business management today.

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Ayush Banerjee

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