What Really Drives Organizations Adopting Cloud Computing?

What Really Drives Organizations Adopting Cloud Computing?

What Really Drives Organizations Adopting Cloud Computing?

Cloud computing is a term used to describe a paradigm for delivery of computing services on a pay-as-you-go basis. Users utilize the internet and remote data centers to run applications and store data, thus eliminating the need for in house hardware and software. The cloud technology allows efficient computing by removing most of the upfront cost of establishing an IT infrastructure.

cloud-tech

Sounds promising! But wait – we are not used to having someone else dictate, manage, and maintain our data as well as infrastructure. For corporations, there may be intrinsic risks, confidentiality issues, data security, and other potential areas of concern. The advantages of using the cloud, however, seems to outweigh all the potential negative components. In today’s economy, the biggest motivation perhaps is the cost savings that a company can enjoy using the cloud, therefore, cloud adoption is growing at an increasing rate each year as more and more corporations realize its potential. For instance, 2013 future of cloud computing survey conducted by North Bridge Venture Partners reveals that “business driving cloud adoption in everything as a service era”, and that “The survey reveals that business is driving the revolution deriving clear benefits from cloud adoption in the form of continuous innovation and business agility to yield competitive advantage. That growth is consistent with forecasts from GigaOM Research, which expects the total worldwide addressable market for cloud computing to reach $158.8B by 2014, an increase of 126.5 percent from 2011”.

Having said that, it seems like cloud computing, despite its inherent security and data risks, continues to grow at a higher rate. During the last decade, the phenomena of outsourcing businesses processes that may be redundant within an organization is also on the rise. The cloud offers you the best available human resource you require for your business at considerably low cost. Again, cost savings for corporations. In one way or the other, reducing costs play a major role in ascertaining the opportunity cost of adopting cloud computing technologies. Among others, the important factors that drive organization to seamlessly adopt cloud computing technologies are:

  1. Many technologies in Grid Computing and Web 2.0 are mature enough to simply complex processes while maintaining and delivering high performance capabilities over the web.
  2. Physical reduction in hardware such as servers, along with server maintenance and personnel costs.
  3. Electricity, and operational costs
  4. Elasticity, closely related to agility and adaptability, allows corporations the flexibility to select amount and size of data to store in data centers, and allows for dynamic computing power.
  5. Pay-per-use option, making costs variable for organizations
  6. Higher Return on Investment (ROI)
  7. Going Green
  8. Virtualization is one of the core characteristic of cloud computing, and the use of Virtual Machines (VM) and VM Consoles enable enhanced flexibility through routing, aggregation and translation. Additional advantages include, ease of use, infrastructure independency, flexibility
  9. and adaptability, and location independence

The barrier and hurdles that remain in the face of cloud computing are primarily the security and privacy issues associated with it. As rules and regulations become invariably stringent relating to protection of data and developing higher standards of data encryption may mitigate risks, allowing for faster adoption of cloud computing technologies.

(Image Source: Shutterstock)

By Syed Raza

Syed Raza

With over 20 years of combined experience in the fields Law, Management, and IT, Syed has impeccable reviewing and strong editing skills with a long track record of writing technical, legal, and management articles that make readers stop and think.. Being a serial entrepreneur and attorney, he provides consultancy and project management in e-Discovery issues in complex civil litigation. As, a trial attorney with significant experience in matters relating to patent infringement, defense and prosecution in the pharmaceutical industry, contracts disputes, real estate, criminal matters, and international human rights law. Syed provides guidance and counsel to attorneys and clients on all aspects of discovery, including information management, data preservation and collection, early case assessment, comprehensive managed review and production. He also holds a PhD (management sciences) and MBA degree as well.
FacebookTwitterLinkedInGoogle+Share

Sorry, comments are closed for this post.

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Popular

Top Viral Impact

Cloud Infographic – Cloud Computing And SMEs

Cloud Infographic – Cloud Computing And SMEs

Cloud Infographic – Cloud Computing And SMEs SMEs (Small/Medium Sized Enterprises) make up the bulk of businesses today. Most cloud based applications created today are geared toward the SME market. Accounting, Storage, Backup services are just a few of them. According to the European Commission, cloud based technology could help 80% of organisations reduce costs by

Using Big Data To Make Cities Smarter

Using Big Data To Make Cities Smarter

Using Big Data To Make Cities Smarter The city of the future is impeccably documented. Sensors are used to measure air quality, traffic patterns, and crowd movement. Emerging neighborhoods are quickly recognized, public safety threats are found via social networks, and emergencies are dealt with quicklier. Crowdsourcing reduces commuting times, provides people with better transportation

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

The Future of Work: What Cloud Technology Has Allowed Us to Do Better The cloud has made our working lives easier, with everything from virtually unlimited email storage to access-from-anywhere enterprise resource planning (ERP) systems. It’s no wonder the 2013 cloud computing research IDG survey revealed at least 84 percent of the companies surveyed run at

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate long term with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

Please review the guidelines before applying.

Whitepapers

Top Research Assets

HP OpenStack® Technology Breaking the Enterprise Barrier

HP OpenStack® Technology Breaking the Enterprise Barrier

Explore how cloud computing is a solution to the problems facing data centers today and highlights the cutting-edge technology (including OpenStack cloud computing) that HP is bringing to the current stage. If you are a CTO, data center administrator, systems architect, or an IT professional looking for an enterprise-grade, hybrid delivery cloud computing solution that’s open,

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security Cloud applications are a priority for every business – the technology is flexible, easy-to-use, and offers compelling economic benefits to the enterprise. The challenge is that cloud applications increase the potential for corporate data to leak, raising compliance and security concerns for IT. A primary security concern facing organizations moving

Hewlett-Packard Company On-Demand Webinar

Hewlett-Packard Company On-Demand Webinar

Shifting Workloads and the Server Evolution Learn more about the latest industry trends and the challenges customers are talking about. Every ten to fifteen years, the types of workloads servers host swiftly shift. This happened with the first single-mission mainframes and today, as disruptive technologies appear in the form of big data, cloud, mobility and