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Cloud Computing means Efficiency, Flexibility and Cost Savings all bundled into one

Author : Nitin Mishra
Date : February 01, 2016
Category : Cloud Computing

Cloud computing, heralded as the Next Big Thing in IT infrastructure, promises new levels of efficiency, flexibility and cost savings – particularly in the area of outsourced hosting, also known as infrastructure-as-a-service (IaaS). The crux of the matter is that cloud computing gives real value.

In essence, cloud computing is a new approach to IT infrastructure and a logical step on a path to more efficient use of computing resources.

Business enterprises can transform their business models and gain a competitive edge through early adoption of cloud computing technologies.

Early adoption of the cloud provides business enterprises with an opportunity to transform their business models and gain a competitive edge. Though cost reduction is one of the benefits, enterprises stand to gain from other benefits that come from having a flexible IT infrastructure. They are able to concentrate on their core competencies while leaving the task of running IT infrastructure to the cloud service providers. Further, through the adoption of the cloud, organizations are expected to become more nimble. The cloud helps them quickly provision resources for business opportunities, which could otherwise be lost. The cloud also enables enterprises to build virtual and “open” business processes, enabling its various stakeholders including customers, business partners, suppliers, etc. to connect and do business more seamlessly.

While there is an extensive list of benefits of cloud computing in business, we will focus our attention here on the most effective ones only. The following is a list of some of the key benefits of Cloud Computing for businesses in general. However, there are many other benefits that may apply to specific businesses:

Cost Savings

Perhaps, one of the most significant benefits of cloud computing is considerable savings in company’s IT cost. Businesses, no matter what their type or size, by moving to cloud computing you can save substantial capital costs through reduction in spending on equipment, infrastructure and software. It allows you to rent additional processing power over the Internet without having to use million-dollar machines as servers. Rather than spending big money on hardware, software or licensing and renewal fees you will cut down your both capital and operating costs by using the resources of your cloud service provider. The contract with most cloud service providers includes the costs of system upgrades, new hardware and software etc. Besides, by moving to cloud you avoid recruitment of IT staff and also save on your energy consumption for running your own data center. As the Cloud platform is utility based, you only pay to the service provider just for what you use when you need it. Thus, with a pay-as-you-go,subscription-based cost structure, cloud services require a lower initial investment and typically much lower overall costs than ‘on-premise’ models.


The other key benefits of cloud computing is its scalability. Your business can scale up or scale down operation and the resource storage needs of your business may require quick adjustment to suit such variations, allowing flexibility as the needs change. There may be times when your company requires hiring more employees, or your business might be on a growth path with the company expanding. Either way, the business would have to consciously buy extra technology or manpower up front before they are truly needed. Such purchase would block costly capital that your company could use somewhere else. Most cloud-based service providers will allow your business to easily upscale or downscale its existing resources to accommodate business needs or changes. This will enable you to support your business growth without expensive changes to your existing systems. This is why ‘scalability’ is one of the major reasons for companies to move their business to the Cloud.

Collaboration Efficiency

Cloud computing model gives your business the ability to communicate and share more easily outside of the traditional methods. It allows much greater collaboration between employees allowing multiple users to share and work on data and document at the same time. Cloud makes it easy for the company’s design and construction professionals, who spend much of their time on job sites overseas or across different locations, to access work related information, files and records quickly and in a secure way.

Anytime, Anywhere Access

The Cloud technology offers access to your data, programs or anything stored in the cloud from any web-enabled devices at any time and basically from any locations. Whether you are in a business meeting, at a hotel, on vacation or working remotely cloud allows you and your staff to access your vital business information, files and data anytime through multiple devices that can greatly benefit your organization.

Flexibility Of Work Practices

Cloud computing offers more flexibility to your employees in their work practices. If you need access to your files and data while you are off-site or at home, you can connect to your virtual office, quickly and easily whenever you need through any web-enable devices.

Enhanced Security

Another major benefits of cloud computing is – strict adherence by the cloud service providers to a high-level security protocol to ensure data protection. Because cloud providers offer services to a large number of businesses and companies, they stick to high security standards to improve data security by following a layered approach that includes data encryption, key management, strong access controls, and security intelligence in addition to regular security audits. As the costs for implementing these security measures are shared across all users in cloud, it is easier for the service providers to allocate resources to provide improved information security that many individual customers cannot afford to.

Business Continuity

Cloud backup solutions play an essential part of a comprehensive backup, recovery and business continuity strategy. In the event of a disaster, be it natural or technical, businesses must be confident that their data was protected, and that it can be restored in a timely manner to ensure smooth running of the business without any disruption. When companies experience downtime, they stand to lose a great deal of money. Cloud computing allows you to better control your downtime. By migrating to the cloud your organization can benefit from a massive pool of latest IT resources, as well as redundant computer servers, without the worry of a large upfront investment or in-house tech know-how. Since all your data is stored in the cloud, it is relatively much easier to back it up and restore the same than storing them on a physical device. Whether you experience a natural calamity, power failure or other crisis, having your data stored in the cloud ensures it is backed up and kept in a safe and secured location to avoid downtime, keeping data and operations running smoothly and consistently and ensuring business continuity.

In the end, a move to the Cloud, however, requires a well-planned strategy, as there are many business and technical constraints that need to be mitigated. Regulations are needed to clear doubts with regards to transfer of data across borders and the ownership/security of data stored on the Cloud. The cloud is here to stay, so better make most of the benefits that it has to offer. Want to know more about how Netmagic can help you with the Cloud? Write to us

Author : Nitin Mishra

Nitin Mishra heads the product management and solutions engineering functions at Netmagic Solutions. During his nine years with the company, he has been responsible for conceptualizing and packaging hosting and managed services focused on IT infrastructure requirements of Internet and Enterprise applications.