Cloud computing is the delivery of servers, storage systems, networks, databases, and other computer resources via the internet. Before the development of cloud technology, companies relied on their own in-house servers to deliver programs and data to end-users' computers. Today, it's difficult for many businesses to function without the cloud.
Many small- and medium-sized businesses (SMBs) find it more practical to use cloud services than maintain an on-premises (on-prem) system. Learn how SMBs benefit from cloud computing:
Reduced IT costs
Businesses spend a portion of their IT budgets on on-prem hardware, software, and data center upkeep, which includes personnel costs, cybersecurity measures, and utilities. These expenditures can quickly add up and achieving economies of scale may take a long time.
Fortunately, SMBs can save money by outsourcing IT solutions from cloud service providers (CSPs). Since CSPs serve many clients, the former can spread their costs, make on-demand IT resources affordable to the latter, and still make a decent profit doing so.
CSPs also offer affordable subscription-based services that can make SMBs' IT costs leaner and more predictable. As a subscriber, you'll only have to pay for IT resources you allocate for consumption.
Scalable data processing and storage resources
The ability to increase or decrease computing resources on demand is known as scalability. SMBs' IT teams would require a lot of time, money, and effort to increase the processing power of their on-prem IT infrastructure. Moreover, doing so means risking having too many resources during lean business periods. CSPs, on the other hand, enable their clients to scale their businesses with ease.
A business that is expanding its operations can simply increase its cloud computing resources, whether it be storage or computing power. This is because CSPs have access to high-capacity servers that can provision and accommodate various computing needs. Conversely, if a firm is downsizing and needs to reduce its IT requirements, it can scale down its cloud subscriptions just as easily.
On-prem cybersecurity measures can be expensive. However, you can cut costs by basing your IT infrastructure on the cloud. For starters, CSPs implement strong data and security governance systems to safeguard your data. Moreover, they have rules and protocols in place to keep your apps, data, and infrastructure safe from many looming cyberthreats.
It's a good thing that many cloud providers offer BCDR in their service packages to ensure that your data is backed up and recoverable in case a natural disaster or cyberattack occurs.
Enables remote work and hybrid work setups
Anyone with a laptop, tablet, or smartphone can now work anywhere they please since the cloud makes business apps and data accessible online. No one needs to commute to the office just to get work done anymore.
As a result, your staff become more productive because they spend less time on the road and suffer less traffic-related stress. And since fewer people will come to the office, organizations can reduce the office space they rent and the power they consume. If implemented properly, cloud-powered remote work and hybrid work setups will improve your staff's morale as well as your business's bottom line.