The Impact of Cloud Computing on Businesses

Technological advances have happened at such a pace in recent years that it’s sometimes hard to assess and evaluate their impact. Technology trends, however, can stick around and become a transforming force in the world of business. One technology that has had a huge impact on businesses across sectors is cloud computing. From the best HR cloud software to cost-cutting practices, the technology has been influential and it’ll continue to be that long into the future.

What is cloud computing about?

Cloud computing is a broad technology, representing a range of services. In its most simple form, cloud computing is something that doesn’t happen on the hardware or premise of the business – it takes place elsewhere, or in the cloud. It’s usually defined and delivered in the following three terms:

  • Software as a Service (SaaS)
  • Platform as a Service (PaaS)
  • Infrastructure as a Service (IaaS)

You can learn more about cloud computing by completing online courses, like a Microsoft Azure training course. Businesses can, in general, choose to opt for four different types of clouds. These are private, public, hybrid and community cloud types with each offering their own pros and cons to businesses. The right option depends on the needs of the business.

In terms of the sectors, you can use cloud computing, businesses have plenty of options available. You could find the best HR cloud software for managing the recruitment process or opt for cloud-based accounting infrastructure.

The five ways it has changed business

What has the impact of cloud computing been in businesses? There are broadly five ways cloud computing has changed businesses. These are:

The rise of outsourcing and partnerships. Cloud computing has increased businesses’ desire to opt for outsourcing. The reason is that cloud computing provides business more agility and control – something traditional outsourcing options lacked. Nowadays, forging these third-party relationships is much easier without it interfering with the day-to-day running of the business.

The opportunity to take advantage of Big Data. Big Data is hugely influential to businesses and this has been discussed at length in many places. But the access to Big Data is easier thanks to cloud computing and businesses can start enjoying the benefits of it with the help of cloud solutions. For example, the best HR cloud software can access candidate information from bigger sources and analyse the data to improve hiring within the company.

The introduction of new products and services. The technology has brought about a whole new range of products and services businesses can use. Because the technology is cost-efficient, innovation in the field is ripe. Smaller cloud computing companies can easily compete with the big players and have often taken market space from these companies.

The improved tolerance of experimentation. Because cloud computing has made IT infrastructure cheaper and easier to maintain, the barriers to experimenting throughout the business are easier to clear. Cloud computing allows prototyping, market validation and product testing in ways businesses didn’t have previously. This has the power to enhance innovation and the creation of new products and services at a faster pace.

The rise and success of the agile start-up. Overall, cloud computing can and has changed the business model. The old traditional model of big corporations is moving away from the way of the agile start-up. Start-ups are able to access software and services similar to those the big companies use – without it costing that much more. However, the advantage start-ups also have relates to their ability to adopt new technology faster. When the business is smaller, it can be more agile.

The outlook for cloud computing and business

So, what does the business of cloud computing look like in the future? Innovation in the sector has not stopped and it’s likely the above advantages and changes will see many others following suit.

RightScale’s latest Cloud Survey revealed some interesting trends IT specialists and cloud computing experts are expecting to see. The top trends where:

  • The hybrid model will become more prevalent
  • Public cloud is becoming a priority for businesses
  • Businesses will start using more cloud systems (around five)
  • Wasted cloud space is a solution to solve
  • Configuration tools are becoming more important

All these can have a huge impact on how businesses operate. Whether it’s from the next best HR cloud software to new cloud infrastructure, the industry will continue to innovate and transform business.

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