The business landscape is experiencing a seismic shift, and it's largely due to digital transformation. Organizations of every size and in every industry are exploring this digital frontier, and cloud computing lies at the heart.
The journey to the cloud is more than a technological shift. It's a strategic pivot that can redefine your business. Leveraging cloud technology's capabilities allows your organization to evolve from legacy systems and traditional practices to embrace the digital future.
Perhaps one of the most convincing aspects of cloud migration is the significant cost reduction it offers. Organizations can switch from capital expenditure (CapEx) models to operational expenditure (OpEx). This pay-as-you-go model allows businesses to keep their costs under control, enabling them to invest their resources strategically in other growth areas.
A report from digital analyst Gitnux highlights some of the clear cost benefits of the cloud:
Cloud computing can save 20% on infrastructure costs.
84% of businesses that adopt cloud reduced computing costs.
Businesses can reduce energy consumption costs by 30-60% through cloud technology.
Reducing in-house servers with cloud storage can save 40% on the cost of physical space.
Cloud technology also offers flexibility and scalability unlike anything seen in traditional on-premises systems. The ability to scale up or down based on business needs and the market's ebbs and flows is a game-changer for today's enterprises. It allows them to stay agile and competitive in a rapidly changing digital landscape. A 2022 report from Gartner titled ‘Devise an effective Cloud Computing Strategy by Addressing 5 Key Areas’ highlighted the cloud’s power in increasing business agility and competitive advantage.
Moreover, the cloud acts as a catalyst for innovation. It offers businesses a playground to experiment with novel ideas and implement innovative solutions, without the prohibitive upfront costs of establishing physical infrastructure. The ease of testing and implementing new initiatives within the cloud environment creates fertile ground for innovation, making digital transformation a continuous journey rather than a destination.
A McKinsey report titled‘Cloud’s trillion-dollar prize is up for grabs’ said: “Migrating to the public cloud provides organizations with access to innovative tools and capabilities. This enhances product development from the outset and dramatically speeds design, build, and ramp-up, helping companies to dramatically reduce time to market.”
On top of this, the cloud enables organizations to improve their security postures and more easily comply with various global, regional, and local standards. Over 90% of businesses reported that the cloud improved their security and made it easier to meet government compliance requirements, as mentioned in a Salesforce article.
Across industries, the cloud revolution is transforming traditional operational models and driving businesses into the future. From healthcare's digitization to the democratization of financial services, cloud technology is at the forefront of this digital upheaval.
In the coming blogs, we'll delve deeper into the role of cloud technology within the enterprise architecture (EA) framework and how our clients have harnessed these benefits with OrbusInfinity.
Read other blogs in this series: