Why do Enterprises Need to Adopt Cloud Technology?
Why do Enterprises Need to Adopt Cloud Technology?
Cloud computing is one of the technologies that are changing our world with their wide range of applications and benefits. It has something for almost every enterprise. The current scenario, in which the cloud has taken over how the world consumes technology today, is full of challenges and opportunities. And the same is true for every business, be it big or small, new-age or traditional. In fact, cloud computing itself, is now, a big business. By the end of 2022, the global IaaS, PaaS, and SaaS market size is going to hit $107, $71, and $145 billion, respectively.
Adopting the cloud has several benefits, such as it helps you improve your budget flexibility by shifting spending from CapEx to OpEx, enhances business agility and flexibility, etc. However, there is a considerable reduction in time to market for new services, which is why enterprises now rely heavily on cloud services for automation. It helps them obtain resources on-demand that have limitless computing cycles and storage.
The cloud ecosystem is an ideal way to transform enterprises, large and small, since it offers the potential to engage with more customers with different business models. However, the benefits of the cloud will vary from business to business. Yet, we can categorize the benefits of the cloud under three major categories—efficiency, flexibility, and strategic value.
The efficiency benefits of the cloud originate from the savings on capital investment along with a payment structure that helps you ensure that businesses only pay for the resources they use. Provisioning resources with just a click of a button helps businesses to get their products to market quickly as compared to waiting for hardware to be brought in and configured. It also brings accessibility, reduces time to market, data security, and data backup.
The flexibility benefits of the cloud can be easily derived from the fact that users can scale services in a way that they fit their needs, whenever required. It also helps you establish on-demand scalability and efficient storage options. Cloud providers also facilitate the adoption with pre-built tools and features that can be used to build solutions that fit the user’s specific needs, making it more resilient.
3. Strategic Value
Moving to the cloud is a perfect way for enterprises to get a competitive advantage since cloud providers offer the most innovative, latest technologies available in the market. The same can be leveraged for superior collaboration, development and testing, disaster recovery, and so on. Cloud service providers also help you manage all the underlying infrastructure and to focus on your priorities like application development. They also update their offerings constantly.
Which Cloud Deployment Model to Choose?
1. Public Cloud
The cloud offers computing resources that are adopted by various organizations and enterprises through the public Internet. For this, the service provider builds resources, i.e., the applications and storage, and makes them available to the public through the Internet. Public cloud services are either free or bought on a pay-per-usage model.
The worldwide public cloud computing market is an ever-evolving sector, which is continuously growing with time. It is expected to reach $397 billion by the end of 2022.
2. Private Cloud
The enterprise entirely owns the cloud infrastructure, but it may or may not manage it since it could be located on- or off-site. Private cloud is implemented within the corporate firewall, and it falls under the control of the IT department. It offers the same features and benefits as the public cloud systems while removing several objections to the cloud computing model, such as issues about security control over the enterprise and customer data, and concerns connected to regulatory compliance.
In 2020, the virtual private cloud was estimated at $35.6 billion, which is projected to reach $125.8 billion by 2027, growing at a CAGR of 19.8%.
3. Hybrid Cloud
A hybrid cloud can be a combination of any type of cloud model mentioned above. It is usually connected by a standardized technology and brings a combination of on- and off-premises. Hybrid cloud offers the best of both worlds by performing distinct functions within the same organization.
In 2020, the hybrid cloud market had a worth of $75 billion, which is expected to grow at a CAGR of 22.5% and hit $380 billion by the end of 2028.
Popular Technology Providers
1. Amazon Web Services
AWS is a dominant service provider in the public cloud space, having more than 32% of the market share. AWS offers a wide range of infrastructure services, such as database storage, networking, computing power, serverless computing, and memory cache system along with auto scaling.
2. Microsoft Azure
Azure market share in cloud computing stands at 19%. But, Microsoft Azure is the fastest-growing cloud service provider in the market, having deep involvement in all the 3 layers of the cloud, i.e., IaaS, SaaS, and PaaS. It has been helping customers deploy AI, ML, and blockchain in innovative production environments.
3. Google Cloud
Google only shares about 7% of the market but the experience it provides is an elastic and inexpensive cloud computing experience for users with a slightly tight budget. It helps users create business solutions with the help of Google-provided modular web services and offers a wide array of services, which include IaaS and PaaS solutions.
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