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Advantages of Using Cloud Services

by: Karen Cayamanda

Thursday, October 20, 2011 |

Logan Harbaugh of PCWorld comes up with six compelling advantages to using a cloud-based solution for business needs. Processes like payroll, web or email hosting, and enterprise resource planning have proven more cost-effective when outsourced to a cloud provider.

Benefits of Using Cloud Services

However, most companies hesitate at the thought of outsourcing complex IT requirements, like data storage, file servers, and software development. Relying on cloud services would expose a company to risks like data losses, outages, and hacking.

Even with the consideration of these risks, there remain benefits and cost savings to utilizing cloud services:

  • Save on Infrastructure - A monthly payment to a cloud provider is certainly easier and more convenient than purchasing your own servers, licenses, operating systems, and applications. This is most beneficial to services and processes that need to be tested before actual execution.
  • Save on Setup and Management - Creating in-house solutions requires huge investments on process development and human resource. You would need to hire qualified and talented IT professionals and organize a new function. In contrast, cloud providers have teams of experienced administrators whose sole purpose is to support their services and applications.
  • Save on Utilities - Cloud providers have new and cutting-edge technology and data centers housed in infrastructure that is shared by multiple companies. This enables them to efficiently manage the use of its resources and its corresponding costs.
  • Better Performance and Features - Cloud providers naturally purchase high-end equipment and infrastructure of the best possible quality since they provide services to multiple companies. Their systems ought to have higher performance levels. For small to mid-sized firms to employ such a sophisticated setup, it will be unreasonably expensive and even uneconomical. Cloud providers have software licenses that would provide you a wide variety of features. They also have seasoned administrators who know how to make the most of their resources to upscale performance.
  • Increased Company Agility - Cloud providers can readily add servers and they can make this accessible to all kinds of users - internal in the company, external partners, and customers. The level of flexibility cloud services provide will allow you to more effectively respond to the needs of your customers as well as changes in your company.
  • Fault Tolerance - Cloud providers have the resources to run a number of data centers, and to create connections and back up data between data centers. They can guarantee data protection, power redundancy to address blackouts, and other contingency plans that will leave your solutions intact in any situation.

Companies can benefit from significant cost savings and the expertise of high-level administrators and engineers by outsourcing to cloud providers. There will always be risks (i.e. losing data, etc.), but ultimately, you must balance the pros and cons of moving to the cloud, find ways to maximize its advantages, and minimize the risks.

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