Financial Benefits of Moving to the Cloud

This is a guest blog post about the benefits of moving to the cloud from our friends at Cigniti

 

Migrating to the cloud has numerous benefits such as backup, recovery, and security, but one of the primary reasons why enterprises move to the cloud is due to its related cost savings.

A traditional infrastructure such as a data warehouse involves costly updates amidst several other issues such as server anomalies, data discrepancies, dedicated workforce, and most prominently costly updates.

According to Ashar Baig, a research director at Gigaom Research, “Cloud is mainstream today, driven forward by users’ desire for lower cost solutions, better scalability, and business agility.”

Even during the pandemic era, while we’ve seen several enterprises shutting down their businesses for good, cloud adoption has been on an upsurge.

Recent statistics reveal that 90% of the companies have expedited their adoption towards cloud in response to the COVID-19 pandemic with a relative increase in cloud expenditure.

As enterprises rally for a gigantic worldwide effort to produce and allocate COVID-19 vaccinations, Software as a Service (SaaS) based applications that empower vital tasks such as supply chain and automation are critical.

These SaaS based applications endure to prove trustworthy in ascending vaccine management, which in turn will aid CIOs further authenticate the continuing shift to cloud.

The proximity of emerging technologies with Cloud computing has further accelerated its growth.

According to Gartner, “Global public cloud spending is forecast to reach $332.3 billion in 2021, increasing by 23.1% from $270 billion in 2020. Growth in cloud spending can be attributed to increased adoption in technologies such as virtualization, edge computing and containerization.”

The usage and adoption of cloud is set to further evolve to those that amalgamate cloud with technologies such as Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), Big Data, 5G, and more.

Cloud will help as the adhesive amid several additional technologies that CIOs want to use more of, letting them to vault into the subsequent period as they address more multifaceted and evolving use cases and will certainly be a disruptive market, to say the least.

The revenues and profits for the big 3 Cloud companies continue to be on the rise.

The latest statistics reveal that Amazon’s AWS had a surge of more than 30% in revenue during the first quarter while Microsoft’s Azure revenue increased manifold to above 50%.

Followed by these two giants in Cloud business is Google’s Cloud where it has seen a rise of close to 50% in its business during the last quarter.

The constant growth of Cloud computing is a testimony to the fact that no disruptions in the technology or the economy can shake the foundations of cloud.

According to research and analytics firm Canalys, “In the first quarter of 2021, global cloud services infrastructure spending grew to $41.8 billion to represent a 35% year-on-year increment and 5% quarter-on-quarter growth.”

Given its huge financial benefits, enterprises have no other choice but to adapt to the cloud.

 

Here is a list of some of the economic benefits for enterprises implementing Cloud migration:

• Eradicates Operational Expenditures

Owning and managing servers on your own premises is no longer necessary, thanks to cloud data centers. In a variety of ways, this lowers ongoing running costs.

Apparently, if you have fewer hardware on your premises, you will save money on power and cooling. The extra physical space could be better utilized.

By decreasing the amount of maintenance necessary, cloud computing eliminates the need for costly service agreements and additional onsite IT support workers.

Because idle servers waste a lot of energy and money, the ability to scale up or down based on demand and improved hardware utilization corresponds to more efficient power use.

• Improve disaster recovery competences

An enterprise that uses cloud storage has a two-hour disaster recovery deadline.

Companies who employ local storage, on the other hand, can address this problem for up to eight hours, which might result in significant losses for the company.

Object-based cloud storage is supported by modern disaster recovery solutions, so you don’t have to copy the backup to physical media first and then restore it.

This indicates a lesser chance of financial loss due to downtime for a company. Furthermore, the cloud provider is responsible for restoring the system to functioning order, so you no longer have to worry about it.

• Nil maintenance cost

You gain complete responsibility for providing quality services and a serious approach to the work accomplished when you choose a cloud provider that intends to work effectively with a large corporation.

This includes the scope of services supplied, the level of service, equipment reliability and modernity, a team of engineers with extensive expertise, professional planning, and implementation of projects of any complexity, and a personalized approach.

Following the transfer of infrastructure to the cloud, the cloud provider is responsible for the continuous and correct operation of services and equipment, as well as security and a variety of other factors.

The cloud provider also monitors equipment and networks on a constant basis, provides round-the-clock technical help, prepares backups, and handles a variety of other jobs, allowing the client to focus on their primary business.

• Pay-As-You-Go

The pay-as-you-go business model of the Cloud allows businesses to save a lot of money. Essentially, whether it’s email, storage, or server space, organizations may cease paying for underutilized resources, postpone purchases, and check out alternatives before committing to anything.

The business world has begun to move at breakneck speed since the advent of the Internet.

Small and medium-sized business owners have struggled to keep up with the pace and adapt to new technologies.

Businesses profit from IT Cloud services because they improve their operations and communication with clients while saving time and money.

• Decrease the support load of IT department

You can trust the provider to manage the IT infrastructure in the cloud if the details of your organization do not necessitate maintaining and paying a large crew of technical specialists.

This is more cost-effective than engaging a specialist to do these jobs.

Even if your organization is involved in software creation, your experts can do more difficult duties than cleaning dust coolers and restoring unintentionally erased data.

They will be able to concentrate entirely on the quality of the product being developed and the efficiency of each sprint.

• Enhance suppleness

One of the most significant components of a productive day is having access to files. Employees who are not physically connected to an internal server are frequently unable to access files stored on the server.

Cloud storage allows you to access data from wherever, whether you need to open a budget spreadsheet from your hotel room or a Photoshop file from the office.

As a result, your staff will have more flexibility in completing daily activities and will be more successful in circumstances where time is of the essence.

For example, cloud data storage allows you to deploy a product significantly faster because employees don’t have to waste time transferring files, they can make real-time updates, and a circumstance where a specific file is deleted is impossible.

 

Conclusion

Cloud security is essential to assess the security of your operating systems and applications running on cloud.

Ensuring ongoing security in the cloud requires not only equipping your cloud instances with defensive security controls, but also regularly assessing their ability to withstand the latest data breach threats.

Cigniti’s team validates whether your cloud deployment is secure and gives you actionable remediation information when it’s not complying with the standards. The team conducts proactive, real-world security tests using the same techniques employed by attackers seeking to breach your cloud-based systems and applications.

Cigniti’s cloud testing services offer end to end validation of cloud migration transformation and cloud native build with a shift left cloud first approach.

Cigniti’s cloud testing services help enterprises achieve compliance, secure data, reduce efforts by 40% through automated build and deployment validation and improve productivity by 35% with early alerts for any issues.

Get maximum value from your cloud transformation journey with Cigniti’s Cloud Testing services. Schedule a discussion with us to consult with our experienced team of cloud testing experts.

 

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How digital transformation services can help your enterprise to streak ahead

Contributed by Cigniti Technologies.

The world is moving rapidly by riding on the cutting-edge digital technologies, namely, IoT, SMAC, Big Data, Artificial Intelligence and Machine Learning, among others. Businesses are developing products or services with interfaces spread across devices, operating systems, browsers, and networks. This has necessitated their legacy systems to be updated by engaging digital transformation services.

The dynamics of market is increasingly being led by changing customer preferences reflected in new needs, habits, and ways of consuming and communicating. Digital transformation allows enterprises to derive outcomes such as increased productivity, expanded consumer base, streamlined workflows, reduced operational costs, enhanced quality products or services, and better ROI, among others.

Since consumers leverage digital technologies to perform a slew of tasks, the amount of data generated is huge. Analyzing this data and deriving business-oriented insights can be a challenge unless, of course, the business has the technology and resources. Digital transformation services can help enterprises in enhancing their customer interface. For example, by transforming their legacy systems, the utility services providers have been able to improve their efficiency significantly. As a result, the consumers do not need to queue up outside the offices of such companies for doing routine transactions. They can simply log onto the portal or app provided by such companies and transact.

With new avenues of interaction such as social media and mobile, customers want their interactions with a company to be consistent across avenues. This requires companies to take an omnichannel approach to cater to their customers. If they do not fall in line, they risk creating customer dissatisfaction and losing them. Again, to cite an example, customers want to place an order as per convenience and want it delivered through their preferred channel. So, unless the company has the technology and resources to address the demand, its competitiveness can go for a toss. Let us discuss how digital business transformation can help businesses to streak ahead in the competition.

Benefits of digital transformation solutions

The proliferation of digital technologies like smartphones and computers, and the ubiquity of the internet, have forced businesses to go digital. While many companies have drawn an elaborate digital transformation strategy to convert their systems, workflows, and deliverables, scores of them remain outside the ambit. Many companies are still wary of undertaking digital transformation implementation due to the cost and challenges involved. However, overcoming them is critical for them to stay competitive.

# Better customer experience: The customers of today have become increasingly choosy, thanks to the plethora of products and services available in the market. Customers are wont to choose products, which are not only qualitatively superior but offer better experiences as well. When it comes to the customer experience, the notable elements include aesthetics, performance, security, usability, responsiveness, and prompt complaint resolution. The last part is often crucial in differentiating between two products of similar features.

# Better analytics: Data have become the most valuable asset for an enterprise. These can help an enterprise to receive deep insights into various aspects of its processes. Also, with big data coming into play, businesses should be prepared to leverage the data for achieving success. A successful digital business transformation helps companies to collate data from customer interactions and transform them into a structured form. Thereafter, they can be analyzed to develop insights, identify outliers, and optimize to deliver better customer experiences.

# Faster time to market: Today, customers generally choose products that hit the market first. The early-bird approach of customers has necessitated companies to embrace digital transformation and streamline their workflows. This involves adopting Agile and DevOps methodologies to ensure continuous integration and delivery. As products go through a faster development, testing, and delivery pipeline, customers can receive the products early.

# Better security features: Security has assumed a critical significance in the success of a product in the market. This is due to the fact that the digital products of today have interfaces with different device platforms and third-party software, thereby creating vulnerabilities. These can be exploited by cybercriminals by introducing malware, trojans, and viruses to steal data and information. Thus, the growing menace of cybercriminals to commit data theft has brought the element of security into sharp focus.

Besides, companies need to adhere to international security protocols to garner credibility and escape censure. Hence, the need to imbibe DevSecOps in the workflows has become all the more important. In this approach, security is to be treated as an integral aspect of the workflow across departments. Hence, by implementing digital transformation solutions, companies can help to identify and address the built-in vulnerabilities of a product.

# Reduce operating costs: The digitization of businesses can streamline the workflows thereby increasing its efficiency. With procedural bottlenecks including redundancies removed or diluted, businesses can minimize their operating costs. This can significantly improve the revenue stream and make the company competitive.

# Brand enhancement: With better quality products or services delivered by the company, its brand awareness in the market increases vis-a-vis its competitors. For example, the brands or products having the biggest market share are the ones that are spoken about by the customers. This is mostly due to their superior quality brought about by innovation and digital transformation.

Conclusion

The future of IT means organizations should be nimble enough to quickly adopt the technologies and methodologies of the day. They must be agile and responsive to the customers’ needs and offer products or services that are superior and secure. The need for organizations to embrace digital transformation has become critical to stay competitive.