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Home»Blog»Technology » The Importance of Cloud Computing in Today’s Competitive World
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The Importance of Cloud Computing in Today’s Competitive World

By Manish Barthwal
January 20, 2023. 4 min read
Last update on: January 20, 2023

Cloud computing has played a massive role in the digital transformation of businesses for over a decade. In the last few years especially, the adoption rate of cloud technology has been quite remarkable. That being said, over 70% of businesses are already harnessing the benefits of cloud computing today while 18% are planning to implement it in the nearby future, reports International Data Group. Another report by Dell states that companies that invest in big data and cloud witness up to 53% faster revenue growth than their competitors who don’t. There are countless other stats that indicate how cloud technology has given a boost to companies in terms of efficiency, productivity, and revenue.

What is Cloud Computing?

Cloud computing typically refers to storing, managing, and processing data and programs, over the Internet. In other words, it is about delivering computing services over the Internet. The services include servers, storage, databases, networks, and software.

From startups to large enterprises, cloud computing has benefited businesses of all sizes in one capacity or other. The industry has a current market value of $371 billion and is expected to exceed $832 billion by 2025. Although many business communities have reaped benefits from cloud computing, a large chunk of those operates without it even today.

Read: 5 Reasons Why You Should Use Cloud Computing Services For Your Business

Let’s understand why cloud computing is so important in this digital world and why you should start leveraging it.

The Rise of Cloud Computing

The abundant use of data in the last few years has made it quite difficult for individuals and organizations to store files and programs on a local server (hard drive). This has led to the rise of cloud computing which allows them to access all their files and crucial information right from one place without having to bulk up their local system. For an individual, cloud-based storage services like Google Drive, Dropbox, and Apple iCloud are a boon. They can simply store their data on the cloud and access them on any device and from anywhere, later. As much as cloud computing is useful for personal use, it’s even more valuable for business entities that have to store and access a huge volume of data.

Read: Choosing the Best Cloud Service Provider Between AWS, Azure, and Google Cloud

But what is it about cloud computing that makes it worth transitioning to, from a traditional on-premise IT system? Let’s talk about some of its benefits.

1. Security

Security is one of the biggest concerns for any organization. The advancement in technology has boosted cyberattacks too in the digital space. And it can be a concern for anyone whose files, programs, and other sensitive data are stored on an online server.

The information stored on a cloud system is safe and secure, thanks to its intact encryption and login security system. The data transmitted over the cloud networks is encrypted which makes it nearly impossible for any unauthorized person to access it. As per a report by Rapidscale, 94% of businesses witnessed an improvement in security after switching to the cloud.

While most businesses believe that data stored in a local internal system is less prone to theft and attacks, a high percentage of data theft takes place internally only and is usually perpetrated by employees. In such cases, it makes more sense to store it on a cloud server. The service providers take security extremely seriously.

2. Disaster Recovery

Organizations can anytime face downtime in their IT system due to unforeseen circumstances. It could be due to a power outage, security issues, or any natural event. These disasters causing the downtime disrupt business operations, hamper productivity and lead to revenue loss. Also, if the local system experiences any kind of hardware problem, you run the risk of losing your data permanently.

While there is no way to prevent these sudden and unexpected scenarios, using a cloud-based solution helps prevent data loss and can also help in quick data recovery.

3. Easy on the pocket

Most cloud computing services have a pay-as-you-go subscription model, which means you only have to pay for the resources that you have to use and need not spend an extra penny on the other features that the cloud offers. This is relatively more economical than buying and managing your own resources plus there is no additional investment in hardware, storage devices, etc.

4. Helps focus on core competencies

If your existing IT system demands too much of your time and attention to focus on internal server and storage issues, you will find a hard time focusing on your business goals and objectives. Leaving this headache to the cloud services provider would allow you to invest more time on your core business objectives and improve the bottom line.

5. No maintenance whatsoever

A local server calls for mandatory regular checkups and maintenance and some of the parts need to be replaced when they get old or outdated. A cloud-hosted server eliminates the need for any kind of maintenance as everything is managed by the services provider. You just need to pay for the services that you are using and don’t need to worry about anything else.

There are scads of other benefits of cloud computing that highlight why it is important to be on the cloud today. Cloud technology has become increasingly popular and has transformed the way businesses operate. That being said, more and more industry leaders are investing in cloud technology today to streamline their business operations and improve profit margins. If you have been reluctant so far to migrate to the cloud for any reason, it’s time to make a move. Reach out to us here for any assistance.


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