With the advent of new technologies and the rising amounts of data, it has become difficult for companies to store, manage and process data through their existing IT infrastructure. It is why the majority of the companies are switching to cloud computing services. Clouds are remote servers where companies, as well as individuals, can store confidential data securely. Cloud computing services also facilitate easy data accessibility with the help of the Internet. This blog helps you understand the ten most vital benefits of cloud computing.
Top 10 Benefits of Cloud Computing
The following are the ten best advantages of cloud computing.
1. Security:- Data has become indispensable for both individuals and businesses. Its loss has a significant impact on companies and other organizations. According to Statista, the total cost of cyber security breaches worldwide in 2021 is 4.24 million US Dollars. Therefore, businesses must protect their data at all costs.
Cloud computing is one of the best ways for businesses to secure their data and prevent huge losses. Its security software protects confidential data from external and internal threats. Popular cloud computing security strategies include encryption, firewall, identity, and access management (IAM).
In encryption, the data coding is done with the help of specific keys. A hacker will have to decrypt the key to access the data available in the cloud service platform. The identity access management strategy allows restricted access to users. It determines which user can access which data and carry out what function. IAM protects data from internal threats, whereas firewalls are multiple layers of security. They act as a virtual barrier and prevent malicious attacks on the cloud computing software.
2. Accessibility:- Earlier, it was difficult for businesses and individuals to access the same data on various devices. For example, if an employee prepared a presentation on their laptop, it was difficult to access it on mobile without transferring it. Cloud computing services have helped resolve this issue. They help multiple team members access information and track the changes. Furthermore, you can access information on the cloud from anywhere in the world if you are connected to the Internet. Moreover, cloud computing facilitates Global Public Inclusive Infrastructure (GPII) that helps people with disabilities access information. Therefore, one of the biggest advantages of cloud computing is easy data accessibility.
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3. Reduction in IT Costs:- According to statistics, companies worldwide spent $4,239 billion in 2021 on hardware. Cloud computing has proved to be a great advantage in reducing IT expenditure, especially for small businesses. Since businesses can easily store data on the clouds, they require less investment in on-site IT hardware. Moreover, companies do not have to rely on internal servers or various IT employees. Contrary to in-house data-storage equipment, technical issues with the cloud are not maintained by the businesses themselves. Instead, the cloud service provider ensures that the server is functioning. They are also responsible for other technical glitches. As a result, companies do not require a large workforce in the IT department.
4. Efficient Collaboration:- A lot of companies collaborate by mergers and amalgamations or a joint venture. Some businesses may also enter into a data-sharing agreement for specific projects. Manually transferring data to another organization in case of mergers or joint ventures is tedious and poses security threats. Therefore, cloud computing is an efficient method to collaborate with other businesses and share data. The company that shares data can easily give the other party restricted access to the cloud. Once the agreement is terminated, the parties may remove access to the cloud. It also prevents the other party from copying confidential data as cloud computing provides restricted access to data.
5. Automatic Updates:- Cloud computing is beneficial for businesses that process tons of data every hour. Now, companies no longer have to wait for hours to download and install their software updates. Cloud computing applications update automatically without any manual intervention. It means that cloud applications are always available to their latest versions. Moreover, companies do not have to pay extra fees for software updates. The charges for updates are usually included in the total costs. It saves both time and money.
6. Storage Capacity:- With cloud computing services, individuals and organizations can get unlimited storage capacity. They do not have to worry about running out of storage space and investing in data storage hardware. Businesses can store confidential data of their customers, insights on market research, and other crucial information on the cloud. Moreover, businesses can get unlimited storage capacity on cloud applications by paying an extra fee.
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7. Flexible Payment Model:- Cloud computing services offer a flexible payment model to their clients. Most of them have a pay-as-you-go arrangement. It means that businesses need to pay only for the services they avail. This serves as an excellent advantage for startups and small businesses as they do not have to invest large amounts to avail cloud services in one go. For example, if a small business has a smaller amount of data that needs protection, they can select a plan that offers less data storage. It helps the business cut down unnecessary costs. The payment models are usually flexible. Businesses have the option to upgrade to a higher storage plan at a later stage. It cuts down extra costs for enterprises.
8. Environment Friendly:- Another significant advantage of cloud computing technology is that it is environment friendly. With the rising threat of climate change, people worldwide are focusing on environment-friendly technologies. Cloud computing helps reduce the carbon footprint as there is no longer a need for every company to have its hardware or software for data storage. Moreover, the temperature in the server rooms has to be regulated. If companies have different server rooms, they will have to regulate the temperature. This often has a negative environmental impact.
As cloud computing does not require companies to maintain server rooms, it reduces environmental issues. For example, a 2010 study by Microsoft, Accenture, and WSP Environment and Energy suggested that using cloud computing services can reduce the carbon footprint of big companies by 30% and of smaller businesses by 90%. Another Lawrence Berkeley National Laboratory study also found that if US businesses that use common software applications start using the cloud, they can reduce energy consumption by 87%.
9. Data Recovery:- As they say, data is the new oil. It has become one of the costliest items in the world. According to statistics, businesses incur $18,120 to $35,730 cost for small instances of data loss. Moreover, in the US, businesses have to bear an average of $7,900 per minute cost of a data center outage. Unplanned downtime also causes an average of $7,900 to businesses. Therefore, data loss can cause a lot of damage for companies. Cloud computing platforms offer data recovery or cloud disaster recovery (CDR) services and help companies save money. CDR encapsulates data and copies to an off-site server that allows companies to recover lost data.
10. Competitive edge:- Data is the most crucial tool for companies that helps them gain a competitive advantage in the market. Many cloud analytics platforms like Zoho and Qlik help companies analyze cloud data. In addition, these platforms have software as a service (SaaS) models that use data analytics and business intelligence to provide companies with insights. As a result, it helps companies to stay ahead of their competitors.
How To Learn Cloud Computing?
Many businesses are availing of cloud computing services with every passing day. According to Statista, 50% of corporate data is stored in the cloud. You can choose from various career options in the cloud, such as cloud engineer, architect, consultant, security engineer, UI developer, and others.
If you are interested in the data sector and wish to pursue a career in the same, you must learn about cloud computing. You can enrol in the Advanced Certificate Program in Cloud Backend Development offered by upGrad to master cloud computing from scratch.
What is cloud computing?
Cloud computing is a virtual on-demand IT infrastructure like data storage and applications. It allows individuals and businesses to store and access confidential information on online servers rather than on a hard drive.
Is cloud computing good for the environment?
Cloud computing is good for the environment as companies can use a shared IT infrastructure rather than investing in separate hardware and software systems. It is beneficial for the environment as it helps reduce carbon footprint.
How can cloud computing help small businesses?
Cloud computing is beneficial for small businesses because they do not need to spend huge amounts on data storage software or security licenses. Cloud computing also helps reduce their IT infrastructure expenditure. Moreover, the flexible payment model of cloud computing services is also beneficial for businesses.