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Why businesses are moving to cloud computing

When companies understand what “the cloud” is, and how much money they can save, eyes light up – but there’s more to it than cost savings as outlined in this story.

cloud computing

cloud computing

Cloud computing: more than a fancy phrase

The cloud is one of the fastest growing growth areas in the IT sector, and many overlook the concept simply because it sounds complex, but really, it is a massively helpful tool for any sized business. Cloud computing is the next step in the web, and you’ve heard it wrapped up in similar terms like cloud technology, cloud based services, cloud applications, or just “The Cloud,” as seen in television commercials.

Simply put, cloud computing allows apps and data to be accessible on the web instead of on a single computer or network, and is already used by most web payment systems and accounting software. You’re probably using cloud computing already, whether you know it or not – cloud-based tools include Constant Contact, Dropbox, Freshbooks, and Netflix. Data stored online is much cheaper than manually storing and backing up data yourself, and are typically easy to use.

explanation of cloud computing

Why businesses are moving to The Cloud

According to a new Yorkshire Cloud infographic, due to existing setup problems, downtime, scalability, and most importantly, costs, businesses are flocking to cloud computing. Below are some facts presented by Yorkshire:

  • The average downtime with traditional IT systems if four times longer than those witnessed with cloud computing.
  • In the UK alone, in 2010, 73 percent of businesses saw staff shortages due to heavy snow, only 39 percent had the IT flexibility to overome it.
  • Implementation and upgrade costs are more expensive with traditional IT systems compared to cloud computing.
  • Regarding the benefits of cloud computing, 61 percent of surveyed IT professionals said scalability was a top benefit, as cloud services can grow or shrink instantly, allowing businesses to easily adapt.
  • Over half said a top benefit of cloud computing is cost saving, as hardware and upgrades are cheaper, and half said cloud computing eliminates IT management headaches.
  • Cloud computing can reduce IT labor costs by 50 percent and small business energy costs could be reduced by 90 percent.

Written By

Marti Trewe reports on business and technology news, chasing his passion for helping entrepreneurs and small businesses to stay well informed in the fast paced 140-character world. Marti rarely sleeps and thrives on reader news tips, especially about startups and big moves in leadership.



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