Business Enterprise

Should you switch to the cloud? Four benefits that outweigh on-premises solutions

Zen Jan 24 2024 5 minutes

Cloud computing is a way of using the internet to access, store, and process data and applications, instead of relying on your own hardware and software. This can help you save money, increase flexibility, enhance security, and foster innovation for your business. But how does cloud computing compare to traditional on-premises solutions? In this article, we'll explore four benefits of switching to cloud computing and why they outweigh the advantages of staying on-premises.

Benefit 1: Cost savings

One of the main reasons why businesses switch to cloud computing is to save money on IT infrastructure and maintenance. When you use cloud computing, you don't have to worry about buying, installing or maintaining expensive equipment and software. And you don't have to pay for electricity, cooling or security costs for your servers. Instead, you only pay for what you use and can adjust your usage according to your needs. This means you can avoid wasting money on unused or underutilized resources. According to a study by IDC, businesses that use cloud computing can reduce their IT costs by up to 50%.

On-premises solutions, on the other hand, require a high initial capital expenditure (CAPEX) and ongoing operational expenditure (OPEX) for maintaining and upgrading servers, software and infrastructure. You also must pay in advance for all the hardware and resources you think you might need, which can result in under or overprovisioning. Overprovisioning means you pay for more resources than you actually use, while under provisioning means you don't have enough resources to meet your demand. Both scenarios can lead to inefficiency and waste.

Benefit 2: Flexibility

Another benefit of cloud computing is the flexibility and mobility it offers. Your users can access their data and applications from anywhere, anytime, and on any device as long as they have an internet connection, enabling work from home, the office, or anywhere in the world.

The flexibility of cloud enables your business to easily adapt to changing market conditions and customer demand by adding or removing resources as needed. If you need more storage space or processing power for a project, for example, simply scale up your cloud service without the need to buy or install new hardware. And if you need less resources later, just scale down and save money.

On-premises solutions, however, limit the access and mobility of users to the physical location of the servers. You’ll also have to deal with the hassle of installing and updating software on each device. On-premises solutions have a fixed capacity and may not be able to handle sudden spikes in demand. You may have to invest in more hardware or software to meet your needs, which can take time and money.

Benefit 3: Security

The cloud can also help you to improve your security and privacy. When you use the cloud you are entrusting your data to teams of dedicated security experts who possess a deep understanding of the latest threats and vulnerabilities, and how to safeguard against them.

Data encryption, round the clock monitoring, regular updates and patching, automation, inbuilt resilience, and economies of scale that enable huge investments in cyber security mean you don't have to worry about cyberattacks, natural disasters or human errors that could compromise your data and applications. You also don't have to worry about legal and regulatory issues regarding data sovereignty and compliance, as your provider will ensure that your data is stored in accordance with relevant laws and standards. According to reports, 94% of businesses that use cloud computing report improved security.

On-premises solutions give you more control and ownership over your data and applications. However, this also means you have more responsibility for protecting them. You have to implement your own security policies and standards and comply with your local regulations. You have to invest in security software and hardware and keep it updated. And, you have to back up your data regularly and ensure its availability in case of any disaster or outage.

Benefit 4: Innovation

Finally, cloud computing can help you foster innovation and growth for your business. With cloud computing, you can leverage the latest technologies and tools available to improve your products, services and processes. You can also collaborate more effectively with your team members, partners and customers by using cloud-based platforms and applications. Cloud computing could also help you gain a competitive edge in your market by enabling you to launch new products or services faster and cheaper than your rivals.

On-premises solutions, on the other hand, may limit your innovation and growth potential. You may have to rely on outdated or incompatible technologies and tools that hinder your productivity and performance. You may also have difficulty collaborating with others or reaching new markets due to a lack of mobility and flexibility. On-premises solutions may also slow down your time to market and increase your costs due to the need for more hardware and software.

Are you ready to benefit from the cloud?

Cloud computing is a powerful way of using the internet to access, store, and process data and applications without relying on your own hardware and software. It can help you save money, increase flexibility, enhance security, and foster innovation for your business. By switching to the cloud, you can boost your business performance and take it to the next level.