Ten years ago, it was common practice for businesses to pay for resources that they didn’t need and keep them in reserve for the rare occasions that they did. Here, James Bedford, Director of Infrastructure at ERP software provider CPiO, explains how traditional business models have evolved because of widespread adoption of the cloud and why more businesses are making the shift.
With the widespread use of technology, the cost of hardware and software has become more affordable. This includes the once cost prohibitive technology, cloud computing.
Since the term was first coined in 2006, cloud computing has played an integral role in the transformation of many business operations in the last decade. Cloud platforms enable users to collect, process and transform data on a larger scale.
Before the cloud, businesses would purchase software and install it onto the computer’s hard drive, often with the older versions still installed. Because upgrading was expensive and time consuming, many businesses would use the chosen software beyond its useful lifecycle. If a company runs out of storage space, there’s a requirement to purchase another server or, if there is an increase in employees, companies need to purchase additional software licenses. This can prove costly, especially if a business is rapidly growing.
This is one of the main reasons for businesses making the move to the cloud. By delivering IT resources over the internet instead of hosting these resources locally, businesses can scale up or scale down to support their needs at the time. Businesses also have the added benefit of doing so without the fear of downtime or permanently losing data.
According to a survey conducted by the Harvard Business Review, a third of respondents specified business agility as the primary reason for adopting cloud computing.
Agility, when referring to it in a cloud context, refers to a business being able to develop, test and launch software applications that drive business growth quickly and cost effectively. The more agile a business is, the easier it can respond to changing needs, which will put it in a better position to quickly collate the resources to deploy the new infrastructure.
Cloud based software
Most businesses are already using the cloud for part of their IT infrastructure without realising, whether it’s to host their e-mail or their financial information. For businesses looking to manage a variety of functions in one solution, third party solutions can be integrated into Sage Business Cloud: Enterprise Management (formerly known as Sage X3).
By incorporating the ideas of flexibility, balance and adaptability in one solution, Enterprise Management allows businesses to create an integrated business model. Providing security, system back-ups and updates as and when they are launched by Sage, Sage Business Cloud provides businesses with a platform that can help to focus on improving internal processes such as monitoring and analysis.
Employing a cloud-based software also takes some of the pressure off IT teams. IT departments no longer have the worry about data backups or hardware failure as these are managed remotely. Instead, the IT team can allocate their resources more efficiently to help facilitate remote working or proactively plan the business’s next challenge.
The on-demand virtual space of cloud computing gives businesses full control to install any software as and when it’s required. The days of paying for resources you may never require are behind us. By embracing the cloud revolution, businesses can become more agile, improving workplace performance and increasing profits in the long run.