Why Move to the Cloud? 6 Reasons Companies are Moving

The cloud refers to a vast network of servers around the world that store and manage data and run applications. At its core, the cloud is a collection of resources that closely mimic the structure of data centers. Many of the components used to build cloud data centers are the same components used to build corporate data centers, but the deployment and management of the resources are on a significantly larger scale.

Instead of having your own physical servers and data centers, you access what you need online. This can include storage space, databases, software, and even entire applications. Think of it like renting electricity instead of running your own power plant. It's a more flexible and cost-effective way to use computing resources, especially for businesses.

As of 2023, around 60% of corporate data was stored in the cloud. The amount of corporate data shifting to cloud storage has steadily increased over the years. Additionally, according to Exploding Topics, 89% of companies use a multi-cloud approach.

Cloud migration is the process of moving data, applications, and processes to the cloud. This can mean moving from a company's on-site servers to a public cloud provider's servers, or between different clouds. There are several reasons why companies may choose to move to the cloud, and we’ve outlined the six main reasons below:

1. Cost Savings

Cloud computing can help businesses save money, making it a smart choice for many. When companies switch to the cloud, they often cut down or even get rid of the costs linked to running their own IT setup. This includes spending less on hardware like servers and storage devices, as well as on energy costs and having a big IT team to look after all that equipment.

Plus, cloud services use a "pay-as-you-go" model, so businesses only pay for the computing power they actually use. This means they can adjust their resources to match their needs, avoiding unnecessary expenses. This kind of flexibility not only helps save money but also makes businesses more efficient. It also helps companies quickly respond to changes in the market or customer demands without being held back by physical tech limits.

2. Increased Business Agility & Scalability

Cloud computing is pivotal in improving agility, providing essential tools and infrastructure that allow businesses to quickly respond to market demands. It allows companies to streamline software development processes and launch new services quickly. In today's fast-paced economic environment, the ability to quickly develop, test, and deploy new applications or services is invaluable. Cloud technology helps improve these processes through on-demand resources like virtual servers, databases, and comprehensive development tools.

The scalability of cloud services allows businesses to adjust their resource allocation based on real-time demands. This adaptability is crucial for handling changing workloads. For example, a retail company could enhance its e-commerce systems to accommodate increased holiday season traffic, and later scale back to manage costs more effectively. The operational flexibility not only helps with cost management but also provides a competitive advantage and helps businesses grow.

3. Enhanced Security & Reliability

Security is extremely important for businesses. Moving to the cloud improves security, as many cloud computing services have built-in security measures, like encryption.

Bringing data together into fewer, more secure, and centrally managed spots improves data security. Having a centralized database means that security measures such as access controls, encryption, and regular security checks can be uniformly enforced and managed. This simplifies the security of multiple locations and reduces the risk of data breaches.

Additionally, cloud providers are required to follow compliance standards aimed at safeguarding sensitive data. This can include various federal, international, and state security laws, regulations, and standards.

4. Fostering Collaboration & Innovation

Cloud computing also increases collaboration and innovation among employees and teams. Cloud-based tools allow teams to work together on documents, projects, and applications, regardless of their location. Cloud platforms also often have communication tools like chat and video calls allowing for easy team discussions. This can help with creativity and knowledge-sharing, leading to innovation.

5. Improved Accessibility

Unlike traditional software requiring specific computers, cloud-based applications are accessible from desktops, laptops, tablets, and even smartphones. As long as you have an internet connection, this empowers people to work, learn, or access data on the go, regardless of what device they’re using.

Cloud platforms can also integrate various tools like screen readers, text-to-speech software, and closed captioning.

6. Consolidate Data Centers

Cloud computing allows companies to consolidate data centers, cutting down on the need for extensive in-house IT resources. For some companies, this means managing challenges like excess space and underutilized resources. By moving to a cloud-based setup, companies can make use of virtualization technologies, which let multiple software systems operate on a single physical machine, making the most of resource utilization.

This merging and virtualization not only makes data organization and resource management smoother, but also boosts operational efficiency by lowering energy use and maintenance costs.

While the cloud offers many benefits, there are potential concerns companies should consider before migrating their data and applications. One potential concern is data breaches, including unauthorized access to sensitive data. Another concern is data control, as companies may feel they lose control over their data when it resides in a cloud provider’s infrastructure.

Ways to help address these concerns include encrypting data, conducting regular audits, and keeping backup files.

Moving to the cloud can be an involved process and may look different for everyone. To ensure a smooth transition there are a few key stages to consider:

1. Assessment and Planning

The first step in a cloud migration is assessment and planning. By taking time to assess your current infrastructure, you’ll be able to identify your goals for the migration and distinguish what applications and data need to migrate. At this stage, it would also be beneficial to partner with a cloud migration expert. They can help develop, implement, and manage a cloud migration strategy. Additionally, cloud migration experts can help guide organizations on cloud service models, tools, technologies, and deployment options.

2. Migration

The next step would be to begin the cloud migration. This process can include transferring an organization’s IT infrastructure, data, and applications to the cloud. Organizations may choose to start with a non-critical application or data set to test the process before migrating everything. Once the migration is complete, it’s important to test everything to ensure it functions correctly in the cloud environment.

3. Optimization

The final phase of the cloud migration process is optimization. This phase is all about getting the most out of your cloud environment after the migration and improving performance and efficiency. This can include adjusting resource size and type, utilizing auto-scaling, and leveraging cost-saving features like spot instances. Optimization is an ongoing process and organizations should continuously optimize their cloud environment.

While this provides a basic roadmap, migrating to the cloud can be a complex process. By partnering with a cloud migration expert, you’ll receive valuable knowledge and help throughout the process. This can help ensure a smooth transition, minimize downtime, and maximize benefits.

Moving to the cloud is a strategic decision that can be extremely beneficial for organizations. From cost savings to enhanced security, and fostering collaboration and innovation, the cloud empowers organizations to thrive in today's dynamic landscape. SPR offers strategic cloud consulting services and is ready to assist your organization. Contact us today to learn more.