Innovation and changeCloud ComputingWhat is driving organisations to the cloud?

What is driving organisations to the cloud?

Grant Gevers, consultant at CPiO, explores the drivers behind adoption of cloud technology and why those that cannot fathom the change right now should rethink their IT infrastructure

Whether you believe cloud computing to be evolutionary or revolutionary, there is no doubt that the cloud is transforming today’s computing landscape. Grant Gevers, consultant at CPiO, explores the drivers behind adoption of cloud technology and why those that cannot fathom the change right now should rethink their IT infrastructure.

 

John F Kennedy once said, “Change is the law of life and those who look only to the past or present are certain to miss the future”. This is especially true for IT, with many organisations that neglect newer technologies often facing internal process inefficiencies and competitive disadvantages.

Cloud computing is one of these technologies. It has gained traction with consumers in the past decade, but organisations are only now beginning to realise the impact adoption can have. But what are the key factors that are driving this realisation?

From CPiO’s experience, the drivers often include a need for connectivity, the desire to improve operations and data flexibility.

 

Connectivity

It’s estimated that in 2020 there will be over five billion internet users, with over half of these accessing the internet through a smartphone or handheld device. The increased connectivity between devices because of platforms like the cloud means that we can bring the three silos of work, home and our social interests into one seamless experience.

Crucially, it also means that staff working out of office are able to remotely update a company’s systems. For example, a sales manager could update a cloud-based enterprise resource planning (ERP) or customer relationship management (CRM) software with new customer or supplier data. This ensures that information is kept up to date so there is a reduced risk of lost data.

 

Improve operations

Efficiency, or lack thereof, is an extremely common cloud driver for businesses. The Cloud Enterprise Report found that 71% of businesses worldwide had employed the cloud to improve their employee efficiency. In fact, it’s recently been revealed that the government now also uses cloud services for the same reason and is used for tasks such as tax administration.

Improving IT agility and efficiency offers various other benefits including business growth. In 2015, more than half of the enterprises surveyed reported an increased growth since adopting cloud technologies.

This isn’t a complete surprise. The IDC predicts that in 2018, 70% of a business’s total output will be held back because of outdated business models and legacy technology.

This is because first-generation business applications operate as individual processing systems that do not exchange data or interact with any of the company’s other data systems. In today’s highly connected business world, this type of system prevents businesses from collecting accurate, real-time enterprise information that can be used to improve its operations.

 

Flexibility

Employing cloud-based software means businesses can provide a fully-hosted, managed service model that migrates all of a business’s critical data and applications to the cloud, which can then be delivered through a desktop session.

By choosing a third party to host key applications such as ERP and CRM systems, businesses can eliminate concerns over data backups and hardware failure and ensure flexibility. Businesses can also scale up and down their software depending on business needs, meaning that cloud-based software provides no technology constraints on growth.

Instead of resisting the shift to the cloud, organisations should look to the right supplier to guide them in choosing the right applications for their business model.

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