The proportion of IT spending that is being allocated to cloud solutions is on the rise. This is due to the increased need for IT systems to be accessible from anywhere.
Thanks to COVID-19, home working has become a new normal for many organisations. As such, these organisations have had to take a hard look at how their infrastructure runs and how easy it is for their employees to log in from home. Some organisations already had a brilliant cloud-based infrastructure running, which allowed users to work from anywhere without problems. Others did not have this luxury pre-pandemic. Those that did not already run in the cloud would have likely had to put in place a temporary solution. This often involved a clunky and unreliable VPN and virtual desktop solution. We certainly don’t need to tell you how difficult that can make working from home.
Most of the organisations that implemented a temporary solution will have began to slowly migrate on things settled down a bit. By doing so they were ensuring that their migration was not rushed and likely to cause issues further down the line. That’s pretty sensible if you ask us.
As a result, we have seen a huge spike in public cloud spending as more organisations re-allocate their IT spending. This means organisations are not spending money on purchasing and maintaining traditional servers. Instead they are paying a simple subscription for a cloud solution which better suits their business needs.
By 2024, more than 45% of IT spending will shift from traditional solutions to cloud.
We’ve posted a lot of content about how brilliant cloud technology is from an IT manager’s perspective. But we want you to understand why many organisations adopt a cloud-based solution. We also want to show how we know that this will continue to be the case. To do this we need to look at things from a CEO’s perspective. What is attractive about cloud solutions to a CEO and why would they choose to migrate?
Cloud technology enables digital business opportunities.
Cloud solutions aren’t only about cloud. As organisations adopt new IT and operating processes, they are able to create new opportunities in digital business. This includes how they interact with their customers.
Take the example of a property management company. By using a cloud-based booking system, their customers can book an engineer to come to them at a convenient time without having to pick up the phone. The same goes for contact centres that have upgraded to a cloud-based CRM system. They can now add live chat as a contact method which makes it easier and for customers to contact them with their queries.
Organisations that embrace dynamic, cloud-based operating models are ready for the increased competitiveness in today’s rapidly changing business environment. These organisations are in a position to be early adopters or the brilliant innovations that will shape the future of business.
Cloud solutions improve security.
Security is a big issue for modern businesses. Especially those that regularly handle sensitive customer data. This could include financial or health information. Working with a good cloud solutions provider will help increase your security. Good CSP’s will likely offer solutions that your organisation may not be able to get hold of or have the capacity to commission yourselves.
Microsoft Azure is one of the most secure and compliant platforms available today. Microsoft have more than 90 compliance offerings and invest more than $1 billion in cyber security research. They also have 3,500 security experts on hand to keep everything safe and secure. With Azure you can be confident that your cloud solution is far more secure than any on-premise servers.
Cloud solutions are better for your bottom line.
Running on-premise servers costs money. A lot of money. You are paying for the hardware, the energy, the server room space, upgrades, maintenance and licensing. Now imagine that all those bills turn into one bill and which then shrinks by about 40%. That’s your cloud services bill.
With Microsoft Azure cloud solutions all you pay for is the virtual instances and your heavily discounted licenses. You pay only for what you use on a monthly basis and you don’t have to worry about hardware failures, onsite maintenance, energy usage or space. It’s a very similar story with AWS too. You cut out all the un-necessary expenditure associated with running your IT systems. This allows you to put more money back into other areas of your business that might need it more.