CLOUD MIGRATION

7 Benefits of Moving to the Cloud

Moving to the cloud can re­sult in near end­less tech­nol­ogy im­prove­ments to your busi­ness, but look­ing be­yond this there is a huge range of eco­nom­i­cal ad­van­tages too. A re­cent sur­vey has seen 82% of the com­pa­nies who made the move to cloud com­puting save money among other ben­e­fits. In this ar­ti­cle we will look at some of these key dri­vers. Though ul­ti­mately, all ben­e­fits should lead to:

Increased rev­enue, de­creased costs and in­creased cus­tomer sat­is­fac­tion - the goals of all busi­nesses” - Every busi­ness owner ever

In the past, us­ing a lo­cally in­stalled ap­pli­ca­tion to pro­vide your soft­ware to a cus­tomer re­quired an in­stal­la­tion process on the hard drive of that ma­chine. By com­par­i­son the cloud pre­dom­i­nately uses a browser. This com­pletely trans­forms the ca­pa­bil­i­ties of your soft­ware. These ben­e­fits then trans­form into ad­van­tages for your busi­ness. Here is a list of 7 key busi­ness ben­e­fits to cloud com­put­ing.

1. Be Competitive

To dis­rupt or be dis­rupted, that is the ques­tion. Throughout the next five years, a 44% an­nual growth in work­loads for the pub­lic cloud ver­sus an 8.9% growth for on-premise” com­put­ing work­loads is ex­pected. Basically what these fig­ures mean is if you’re not on board, you’re al­ready be­hind. With ma­jor­ity of busi­nesses al­ready recog­nis­ing the ad­van­tages in cloud com­put­ing, cus­tomers now have an ex­pec­ta­tion to be of­fered soft­ware through the cloud. Making the move is there­fore likely lead­ing you to in­creased cus­tomer sat­is­fac­tion and then in­creased prof­its. Joining the cloud will there­fore help you keep your busi­ness com­pet­i­tive in an ad­vanc­ing tech­no­log­i­cal mar­ket.

2. Cost of Infrastructure

Using Infrastructure as a Service (IaaS) al­lows you to grow with your busi­ness. IaaS in­volves us­ing some­one else’s data cen­tre, usu­ally AWS or Azure, to set up a vir­tual server and stor­age base for your com­pany. Amazon Web Services (AWS) sits at the top of the moun­tain of servers avail­able, on track to gen­er­ate at least $US7 bil­lion in rev­enue in 2015. The growth of a sys­tem such as this has de­vel­oped so ex­po­nen­tially due to its pop­u­lar­ity amongst busi­nesses. Companies are able to sig­nif­i­cantly re­duce their ex­pen­di­ture by not hav­ing to set up their own hard­ware in data cen­tres, which can be ex­tremely costly to main­tain.

I do want to give you a fair warn­ing about when the Total Cost of Ownership (TCO) might make it cheaper to own your own hard­ware in a data cen­tre. TCO is the pur­chase price of an as­set plus the costs of op­er­a­tion. Eventually you may be spend­ing more on out­sourc­ing your cloud stor­age than what it would cost to in­stall and man­age your own data cen­tre. Your com­pany has to be pretty mas­sive be­fore the TCO reaches this point.

3. Scalability

Looking to scale the wall of suc­cess with your ap­pli­ca­tion? A huge ad­van­tage of the cloud is its on-de­mand busi­ness model. Using IaaS means as your com­pany gains trac­tion and more cus­tomers, you can scale your in­fra­struc­ture to match. So whether you have 10 cus­tomers and need to grow to 100 or even 1000, you only have to pay for what you need. To see the po­ten­tial fi­nan­cial ben­e­fits your­self, you can test the maths on ei­ther the AWS or Azure cal­cu­la­tor.

4. Continuous Delivery

Often you’ll find when de­vel­op­ing your soft­ware - par­tic­u­larly if you are build­ing in it­er­a­tions - that you are con­stantly mak­ing im­prove­ments and mak­ing changes to its func­tion­al­ity. The Holy Grail of con­tin­u­ous de­liv­ery is to shorten the length of time be­tween the mo­ment one of these new func­tion­al­i­ties have been de­vel­oped and the point in time when it be­comes avail­able to the end user.

It is far eas­ier to de­liver the­new func­tion­al­i­ties to the user, when soft­ware is hosted in the cloud. The main rea­son for this is that us­ing the cloud means per­sonal desk­top­ma­chines do not have to have ad­di­tional soft­ware in­stalled on them lo­cally. The cloud pro­vides for a far more ef­fi­cient method in de­liv­ery of your patches and up­dates. The end re­sult of this is po­ten­tially a boost in cus­tomer sat­is­fac­tion due to the im­proved ef­fi­ciency in the de­liv­ery of your prod­uct. This puts you one step closer to achiev­ing your busi­ness goal of greater prof­its.

5. Access to wider mar­kets

The world is your oys­ter when you move to the cloud. With the global cloud mar­ket ex­pected to grow to $121 bil­lion dol­lars by the end of 2015 there is now po­ten­tial for your soft­ware to be ac­cessed world­wide. Instead of a pro­duc­t’s reach be­ing lim­ited to your mar­ket­ing bud­get - usu­ally within the same coun­try as the busi­ness - plac­ing it on the cloud gives it global reach. With the cloud, any­one in the world is able to ac­cess your prod­uct through a browser and that con­ve­nience will only help in­crease cus­tomer sat­is­fac­tion and prof­its.

6. Up-selling and Cross-selling

Upping your game with the cloud is easy. Up-selling is when the seller en­cour­ages the cus­tomer to up­grade their ac­count, for ex­am­ple to pur­chase more stor­age or li­cences. Cross-selling is when a user pur­chases a new plug-in or mod­ule that of­fers them new func­tion­al­ity. The flex­i­bil­ity of the cloud pro­vides your busi­ness with the abil­ity up-sell and cross-sell.

Software of­ten de­vel­ops a ‘stick­i­ness as users be­come more de­pen­dant on it, cre­at­ing the per­fect mar­ket­ing op­por­tu­nity to sell them higher lev­els of sub­scrip­tions. With Amazon re­port­ing in 2006 that 35% of it’s rev­enues were as a di­rect re­sult of it’s cross sales and up-sell­ing ef­forts, it’s not hard to see how this mar­ket­ing strat­egy can gen­er­ate awe­some prof­its for your busi­ness.

7. Mobile-Apps

A huge ben­e­fit of mov­ing to the cloud is that it en­ables the eas­ier use of mo­bile apps. At the end of 2014 over 52% of the time spent on dig­i­tal me­dia oc­curred on mo­bile ap­pli­ca­tions; and this fig­ure is still grow­ing! This means there is a de­crease in the mar­ket for desk­top-only ap­pli­ca­tions. Customers now want ac­cess any­time and in any place to your soft­ware.

In the mean­time, it’s time to start dis­rupt­ing your com­pe­ti­tion. Get on board with cloud com­put­ing to save your busi­ness costs, in­crease your rev­enue and send cus­tomer sat­is­fac­tion through the roof.

Learn how you can get on the cloud and start meet­ing busi­ness goals by read­ing our Way of Working to­day.

ABOUT THE AUTHOR

Eban Escott

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