Lately, enterprises and organizations are investing a huge sum on tools, strategies, and technologies to attain Digital Transformation. And the cloud is one of the best and most efficient tools that leverage key technologies like Big Data, machine learning, augmented reality, Chatbots, IoT, and others for enabling digital transformation. As IT buying decisions increasingly involve the business executives and with the increasing need for the IT team to leverage the possibilities to develop, deploy and deliver fast, the role of Cloud Computing has become even more significant in enabling the digital transformation of an enterprise. Consider the fact that the total global public cloud computing market size is expected to grow from USD 445.3 billion in 2021 to USD 947.3 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 16.3% during the forecast period according to the ReportLinker research.
1. Prototype Faster and Smarter
Enabling digital transformation requires an organization to pivot its business processes several times. The cloud offers the end-users a unique platform where they can quickly develop, test, and deploy their applications on different channels and mediums during the transformational phase without setting up complex infrastructure. Cloud computing services offer the essential computing resources, infrastructure, and platforms on the go, by saving the organization from the cost, time, and hassles of investing in various IT resources. Also, there are plenty of prototyping tools available for you to test your applications in the cloud environment. For instance, here’s how you can take advantage of the AWS Free Tier to get hands-on experience with the AWS Platform.
2. Operationalize Platform Costs
IT cost savings is perhaps one of the most significant benefits of the cloud in enabling digital transformation. The cloud environment allows organizations and enterprises to scale up or down resources and charges you based on the pay only for what you use model, thereby helping to save a substantial amount of the cost involved in purchasing and managing the IT infrastructure. While the cloud infrastructure enables the elimination of capital expenditure, many organizations still face challenges with managing operational costs of the cloud migration. According to the Flexera 2021 State of the Cloud Report, 36 percent of enterprises said that they are annual spending exceeded $12 million, and 83 percent reported that cloud spending exceeds $1.2 million per year. With more than 36 percent of enterprises spending more than $1 million monthly, it has become increasingly significant that organizations identify strategic ways to manage cloud costs for optimizing the benefits of cloud migration and enabling digital transformation.
3. Increase Time to Market
The latest report by Forrester reiterates the fact that businesses should focus more on implementing future-fit technology strategies such as cloud-native approaches to improve business agility. Business Agility improves the overall operational efficiency, drives down costs, fosters innovation, and enables organizations to quickly create new products and services. And cloud services are one of the most utilized tools in fostering business agility and enabling digital transformation. While a physical server could possibly take days or weeks to be implemented, a cloud server takes minutes, providing organizations with a sustained competitive advantage. According to a Harvard Business Review, Analytic Services survey of 260 respondents familiar with their organizations’ cloud adoption found that the vast majority (83%) say that cloud is very or extremely important to their organizations’ future strategy and growth. It is prominent that organizations can reach the market faster with cloud services and shorten the time for new business launches.
4. Collaborate Better than Ever
Cloud allows multiple teams to collaborate and work simultaneously across geographies in various time zones which is lately becoming an ever more critical foundation for success. And cloud computing is a key enabler of successful organizational collaboration and improved productivity by allowing teams to access, retrieve, and process information anytime, anywhere. Collaborative work based on cloud migration has proved to be competent in fostering collaboration of the most diverse teams and enabling digital transformation across the organization.
5. Improve Security and Privacy
Often, businesses face the risk of losing critical data due to unexpected system shutdowns or data breaches when the data is stored and maintained in-house. Moreover, the chances of data failure increase considerably with big data analysis. Cloud hosting can reduce this risk by creating multiple backups of the data in a secured environment thereby enabling digital transformation for any company. A safe cloud environment offers multiple levels of security and control in network infrastructure to ensure data protection and business continuity. However, few organizations are still wary of adopting the cloud for security reasons including data breaches and data loss. To ensure that the most significant and confidential data stored on the cloud is safe, it is critical that organizations take the mandatory strategic measures to keep the data secure on the cloud.