Cloud Computing- Benefits and Disadvantages

Cloud Computing Statistics

According to Gartner, a prominent analyst firm, Australian organizations are projected to increase their expenditure on public cloud services by 19.3% compared to the previous year. This rise is expected to result in a total spending of $19.9 billion in 2023.

These statistics demonstrate the increasing importance of cloud computing for businesses of all sizes. Cloud computing provides significant cost savings and performance benefits, making it an attractive option for businesses looking to stay competitive in today’s digital age.

How Was Life before Cloud Computing?

Traditionally it was mere paperwork. Managing accounts, preparing invoices, keeping records of a database, all are done on paper and things were quite messed up. Also, those documents were not secured. If papers get loosen, it creates a big fuss.

Later, traditional business software took the place, making it more efficient and easier. Still, the entire method was quite critical, complicated, and expensive. You would need certain software and applications to run them, and it can be really intimidating. You need an expert team to install, configure the software, test it, and then put it into a live environment. Updating them was again time-consuming.

Today, there are apps which are making such things easier. Such apps are being developed as generic or industry based. If your business belongs to an industry, you can use those while the generic apps are helpful for those who run a variety of businesses. Cloud computing covers this entire technological development and provides security to your applications and software.

Types of Cloud Computing

While talking about cloud computing, you should know about the types. There are three types of cloud computing:

• SaaS (Software as a Service)- It is the most popular in cloud market and growing faster. It is used to deliver applications which are managed by the third-party vendor.
• PaaS (Platform as a Service)- This is the base or the framework, on which software developers develop apps and customise them.
• IaaS (Infrastructure as a Service)- This is the self-service model of cloud computing. It is beneficial for monitoring, accessing, and managing the infrastructures of remote data centers. For computing, networking, and storing data at remote servers are done by this.

Each of these services offers unique features and benefits, making them suitable for different use cases. Businesses must evaluate their needs and choose the right service to meet those needs.

Benefits of Cloud Computing

1. It Offers Security and Offsite Data Backup

This is one of the best advantages you could get from cloud computing. While the entire system is online, it often frightens companies about the security, safety of data/files, and its integrity. When you get it from a reputable cloud vendor, your data is monitored and maintained by the cloud host.

Backup services may be part of the cloud plan but if it’s not, make sure it’s an added service. Therefore, there is a very minimal chance of missing data since your data is distributed and backed up in the cloud. Whereas if your data is stored on premises and something happens to the equipment or the building burns down, without an offsite backup, your data will be lost forever.

2. Cost Savings

With cloud computing, businesses do not need to invest in expensive hardware, such as servers, and they do not need to hire IT staff to maintain and manage their infrastructure. Instead, businesses can pay a monthly fee to a cloud computing service provider, which takes care of all the technical aspects of their operations.

3. Flexibility

Businesses can adopt a ‘hybrid’ solution where they can utilise cloud and local resources.  This flexibility enables employees to work remotely, which is becoming increasingly popular in today’s workforce

Critical day to day database software can be moved to the cloud allowing access to anyone in the world with internet access. The cloud vendor maintains the infrastructure, so you don’t have to spend resources on hardware or a specialist to maintain it.

Many specialised software still exists that isn’t offered in the cloud.  This specialised software will still run on the local server, yet other server functions can be offloaded to the cloud.

Important files can be accessed on the local server giving them super-fast access to their files since they’re stored locally.  The cloud can be used to backup these files allowing the business to have an offsite and onsite backup on their mission critical data.

Additionally, cloud computing enables businesses to scale their operations up or down quickly, depending on their needs. This scalability is particularly useful for businesses that experience fluctuations in demand throughout the year.

Disadvantages of Cloud Computing

1.  Downtime 

Not even the best service provider can fix this issue as cloud computing depends on the internet. If the internet is down or it’s slow (Internet Service Provider related issues), not much can be done about it other than to wait until the slowness and outage is resolved.

2.  Limited Control, Integrations and Vendor Lock In

Cloud vendors own the infrastructure and limits in the guidelines on what you can do with the service.  Therefore, it’s important to properly understand the cloud vendor capabilities and services.

Although cloud computing is flexible to use, switching vendors may not be as easy.  You’ll need a team of experts to migrate your data and confirm the viability of the new cloud vendor platform.

Security Concerns of Cloud Computing

Security is one of the most significant concerns when it comes to cloud computing. Storing data and applications on a remote server, rather than on a local server, can make businesses more vulnerable to cyber attacks.  Businesses may be concerned about the privacy of their data, as it is stored on a remote server that is managed by a third-party service provider.

To mitigate these security concerns, businesses should choose a reputable cloud computing service provider that has a proven track record of keeping their clients’ data safe.

Additionally, businesses can take steps to secure their data, such as implementing strong passwords and using two-factor authentication.

Cost Considerations of Cloud Computing

While cloud computing can offer significant cost savings, it can also come at the expense of performance. Therefore, businesses must find the right balance between the two.

The cost of cloud computing services is typically calculated based on the resources used, such as storage, processing power, and bandwidth. As businesses increase their usage, it an attractive option for businesses looking to stay competitive in today’s digital age.

Cloud Computing vs. Traditional Computing

Cloud computing differs from traditional computing in several ways. Traditional computing involves storing data and applications on local servers or personal computers. This infrastructure requires businesses to invest in expensive hardware and hire IT staff to maintain and manage their operations.

Cloud computing, on the other hand, enables businesses to store data and access software applications via the Internet, rather than on local servers or personal computers. This infrastructure enables businesses to scale their operations up or down quickly, depending on their needs, and can save them money overall.

Factors to Consider When Deciding on Cloud Computing

When deciding whether cloud computing is right for your business, there are several factors to consider. First, you should consider your business’s unique needs and requirements.

If your business requires a high level of security, extra investments in cloud security solutions will increase the ongoing costs.  If you don’t trust your data being stored on the internet, weigh up the security advantages and disadvantages of storing your data locally.

Also, if your business has existing software applications that are not compatible with cloud computing, you may need to invest in new software or hire a professional software integrator, which can be costly.

You should also consider the costs associated with cloud computing, both upfront and ongoing. While cloud computing can save businesses money in the long run, it is important to ensure that the upfront costs are manageable for your business if a traditional computing path is chosen instead.

Finally, you should consider the reputation and track record of the cloud computing service provider. You will be entrusting your business’s data and applications to the service provider, so it is important to choose a reputable provider that has a proven track record of keeping their clients’ data safe.

Cloud Computing Service Providers

There are numerous cloud computing service providers in the market, each offering their own unique set of features and benefits. Some of the most popular cloud computing service providers include Amazon Web Services, Microsoft Azure, and Google Cloud Platform.

When choosing a cloud computing service provider, it is important to consider your business’s unique needs and requirements. You should also consider the reputation and track record of the service provider, as well as the costs associated with their services.

Case Studies: Companies Benefiting from Cloud Computing

Numerous companies have already made the switch to cloud computing and are reaping the benefits.

For example, Netflix has migrated its entire video streaming service to the cloud, enabling it to scale its operations up or down quickly, depending on demand.

Another example is Airbnb.  It uses cloud computing to manage its vast network of hosts and guests, enabling it to provide a seamless experience for its users.

Conclusion: Is Cloud Computing Right for Your Business?

In conclusion, cloud computing offers numerous benefits, including increased flexibility, scalability, and cost savings. However, it also comes with its fair share of challenges, including security concerns and potential integration issues.

When deciding whether cloud computing is right for your business, it is important to consider your business’s unique needs and requirements, as well as the reputation and track record of the cloud computing service provider.

If you are unsure whether cloud computing is right for your business, it may be worth consulting with an IT consultant to help guide you through the decision-making process.