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

Sorry, comments are closed for this post.

Comic
Fintech Exploiting AI and Blockchain Technology

Fintech Exploiting AI and Blockchain Technology

AI and Blockchain Technology The field of artificial intelligence (AI) had progressed rapidly in the last ten years, though first recognized in the 1950s. From autonomous motor vehicles to digital personal assistants, the technology is making its way into a variety of industries, enabling better task automation, language processing, and data analytics. But more recently,…

Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Infrastructure-as-a-Service Security It’s no secret many organizations rely on popular cloud providers like Amazon and Microsoft for access to computing infrastructure. The many perks of cloud services, such as the ability to quickly scale resources without the upfront cost of buying physical servers, have helped build a multibillion-dollar cloud industry that continues to grow each…

What’s On The Horizon For Cloud Computing

What’s On The Horizon For Cloud Computing

Cloud Computing Trends Now that we are a little more than halfway through 2016, many experts are beginning to make their predictions about cloud computing for the rest of the year and beyond. While many of the trends aren’t too unexpected (the ever increasing acceptance of cloud solutions by businesses, for instance) other trends are…

Tesla Solar Plan Would Cost Billions To Implement

Tesla Solar Plan Would Cost Billions To Implement

A 1,500-word manifesto that Elon Musk unveiled last week, outlining his plan to expand Tesla Motors Inc.’s electric-vehicle line and to build “stunning solar roofs,” may end up costing the company tens of billions of dollars to carry out. Musk, Tesla’s chairman and chief executive officer, gave the estimate on Tuesday after a tour of the…

Healthcare IoT Security To Grow To $47 Billion In 2021

Healthcare IoT Security To Grow To $47 Billion In 2021

Healthcare IoT Security It’s obvious that IoT can make the entire healthcare industry more efficient. The kind of data involved can be used to save time, physical energy and operating costs. Because of this, devices that facilitate medical data are becoming more commonplace in the industry. This includes things such as wearables that can track…

Get Ready For Virtual Reality and the Cloud

Get Ready For Virtual Reality and the Cloud

Virtual Reality Cloud We’re lucky to live in an era where virtual reality is no longer relegated to the confines of a sci-fi movie universe. Thanks to technology introduced by products like Oculus Rift, consumers now have access to virtual environments with fully immersive graphic capabilities. As a result, companies have only just begun to…

Four Keys For Telecoms Competing In A Digital World

Four Keys For Telecoms Competing In A Digital World

Competing in a Digital World Telecoms, otherwise largely known as Communications Service Providers (CSPs), have traditionally made the lion’s share of their revenue from providing pipes and infrastructure. Now CSPs face increased competition, not so much from each other, but with digital service providers (DSPs) like Netflix, Google, Amazon, Facebook, and Apple, all of whom…

Cloud Services Providers – Learning To Keep The Lights On

Cloud Services Providers – Learning To Keep The Lights On

The True Meaning of Availability What is real availability? In our line of work, cloud service providers approach availability from the inside out. And in many cases, some never make it past their own front door given how challenging it is to keep the lights on at home let alone factors that are out of…

How You Can Improve Customer Experience With Fast Data Analytics

How You Can Improve Customer Experience With Fast Data Analytics

Fast Data Analytics In today’s constantly connected world, customers expect more than ever before from the companies they do business with. With the emergence of big data, businesses have been able to better meet and exceed customer expectations thanks to analytics and data science. However, the role of data in your business’ success doesn’t end…

Do Not Rely On Passwords To Protect Your Online Information

Do Not Rely On Passwords To Protect Your Online Information

Password Challenges  Simple passwords are no longer safe to use online. John Barco, vice president of Global Product Marketing at ForgeRock, explains why it’s time the industry embraced more advanced identity-centric solutions that improve the customer experience while also providing stronger security. Since the beginning of logins, consumers have used a simple username and password to…

10 Trending US Cities For Tech Jobs And Startups

10 Trending US Cities For Tech Jobs And Startups

10 Trending US Cities For Tech Jobs And Startups Traditionally actors headed for Hollywood while techies made a beeline for Silicon Valley. But times are changing, and with technological job opportunities expanding (Infographic), new hotspots are emerging that offer fantastic opportunities for tech jobs and startup companies in the industry. ZipRecruiter, an online recruitment and job…

The Business of Security: Avoiding Risks

The Business of Security: Avoiding Risks

The Business of Security Security is one of those IT concerns that aren’t problematic until disaster strikes. It might be tomorrow, it could be next week or next year. The fact is that poor security leaves businesses wide open for data loss and theft. News outlets just skim the surface, but hackers cost business up…

Cloud Infographic – Interesting Big Data Facts

Cloud Infographic – Interesting Big Data Facts

Big Data Facts You Didn’t Know The term Big Data has been buzzing around tech circles for a few years now. Forrester has defined big data as “Technologies and techniques that make capturing value from data at an extreme scale economical.” The key word here is economical. If the costs of extracting, processing, and making use…

The Future of M2M Technology & Opportunities

The Future of M2M Technology & Opportunities

The Future Of The Emerging M2M Here at CloudTweaks, most of our coverage is centered around the growing number of exciting and interconnected emerging markets. Wearable, IoT, M2M, Mobile and Cloud computing to name a few. Over the past couple of weeks we’ve talked about Machine to Machine (M2M) such as the differences between IoT and…

4 Industries Being Transformed By The Internet of Things

4 Industries Being Transformed By The Internet of Things

Compelling IoT Industries Every year, more and more media organizations race to predict the trends that will come to shape the online landscape over the next twelve months. Many of these are wild and outlandish and should be consumed with a pinch of salt, yet others stand out for their sober and well-researched judgements. Online…

Cloud Infographic – What Is The Internet of Things?

Cloud Infographic – What Is The Internet of Things?

What Is The Internet of Things? “We’re still in the first minutes of the first day of the Internet revolution.”  – Scott Cook The Internet of Things (IOT) and Smart Systems are based on the notions of Sensors, Connectivity, People and Processes. We are creating a new world to view and measure anything around us through…