According to a study conducted by the International Data Group, 69% of businesses are already leveraging cloud technology in some capacity, and an additional 18% express intentions to integrate cloud computing solutions in the future. Concurrently, Dell's research indicates that companies investing in big data, cloud computing, and security experience up to 53% faster revenue growth compared to their competitors. This data underscores a growing awareness among tech-savvy businesses and industry leaders regarding the manifold benefits of the cloud computing trend.

The term "cloud computing" has gained widespread usage in recent years. As society delves deeper into the digital landscape of the 21st century, the exponential surge in data usage has made it increasingly challenging for individuals and organizations to maintain crucial information and systems on in-house computer servers. A solution to this predicament has existed for nearly as long as the internet itself but has only recently found widespread application in the business realm. 

Many individuals are already utilizing various cloud computing services without realizing it - applications like Gmail, Google Drive, and even social media platforms like Facebook and Instagram are all cloud-based. Users send their personal data to a cloud-hosted server, which stores the information for later access. While these applications are invaluable for personal use, they become even more crucial for businesses requiring secure online network connections to access vast amounts of data.

Despite the evident advantages, some leaders remain hesitant about committing to cloud computing solutions for their organizations. To address any reservations, VNG Cloud will highlight the top 12 business benefits of cloud computing in this blog. 

1. Cost Optimization 

Concerns about the expenses associated with transitioning to cloud computing are common. However, those contemplating the pros and cons of embracing the cloud must look beyond the initial price tag and factor in the Return on Investment (ROI).

Once integrated into the cloud, the streamlined access to your company's data translates into savings in both time and money during project startups. For those apprehensive about paying for unnecessary features, most cloud computing services operate on a pay-as-you-go model. This implies that if you do not utilize the full spectrum of cloud capabilities, you won't incur unnecessary costs.

This pay-as-you-go system extends to the data storage space required to cater to your stakeholders and clients. It ensures that you pay only for the space you actually need, eliminating charges for any unused storage. Collectively, these considerations contribute to lower costs and increased returns.  

2. Security 

Security remains a top concern for business owners. Cloud computing emerges as a solution to alleviate this stress. Historically, concerns have been raised about the vulnerability of cloud-based platforms to hacking. Nevertheless, the robust encryption employed by the cloud significantly diminishes the risk of data theft.

Organizations express trust in cloud computing, with projections indicating that by 2025, global data storage on the cloud will surpass 200 zettabytes. 

3. Flexibility 

Your business's focus is finite, and if current IT solutions demand excessive attention to computer and data-storage issues, it becomes challenging to concentrate on business goals and customer needs. Outsourcing IT hosting and infrastructure management to an external organization frees up time for aspects directly impacting your bottom line.

Cloud hosting offers greater overall flexibility compared to local servers. Additionally, for businesses requiring extra bandwidth, a cloud-based service can instantly meet the demand, eliminating the need for a complex and costly IT infrastructure update. This enhanced freedom and flexibility significantly enhance organizational efficiency. In an InformationWeek survey, 65% of respondents highlighted the ability to quickly meet business demands as a key reason for transitioning to a cloud environment. 

4. Mobility 

The defining characteristic of the cloud is its widespread presence, making mobility its key feature. Through cloud connections, businesses can effortlessly establish remote connections using various devices such as smartphones, iPads, and laptops. This facilitates swift responses, instant solutions, and continuous connectivity.

This epitomizes convenience, and as per GlobalNewsWires, it comes as no surprise that the cloud computing industry is projected to be valued at $1,949 billion by 2032, primarily attributed to its mobility features. 

5. Insight 

In the digital age, the saying "knowledge is power" transforms into the more accurate assertion: "Data is money." Valuable insights within customer transactions and business processes await identification and utilization. Navigating this data challenge is eased with the right cloud computing solution. 

Cloud-based storage solutions with integrated analytics offer a comprehensive view of your data. Storing information in the cloud facilitates easy implementation of tracking mechanisms and customized reports for organization-wide analysis. Leveraging these insights enhances efficiencies and aids in formulating action plans to achieve organizational goals. For example, Sunny Delight, a beverage company, increased profits by about $2 million annually and reduced staffing costs by $195,000 through cloud-based business insights. 

6. Collaboration 

Whether your business has two employees or more, prioritizing collaboration is essential for effective teamwork. Cloud computing streamlines the collaboration process, allowing team members to easily and securely view and share information across a cloud-based platform.  

Some cloud services also offer collaborative social spaces, fostering connections among employees across the organization, thereby increasing interest and engagement. While collaboration is feasible without a cloud computing solution, it will never be as straightforward or effective. 

7. Quality Control 

Few factors are as damaging to business success as poor quality and inconsistent reporting. In a cloud-based system, all documents are stored in a unified location and format. With everyone accessing the same information, you can ensure data consistency, prevent human error, and maintain a transparent record of revisions or updates.  

Conversely, managing information in silos may result in employees inadvertently saving various document versions, leading to confusion and compromised data quality. 

8. Disaster Recovery 

The most significant disaster a company can face is the "loss of data", with a ransomware attack costing approximately $4.54 million. However, the cloud serves as a secure repository for backed-up data, enabling companies to recover lost data effortlessly. According to Statista, about 85% of technical executives consider security a significant challenge.

The cloud reduces the time wasted on technical errors, server delays, and other drawbacks, amounting to almost 6 hours a week, equivalent to a full day lost. Consequently, the cloud aids businesses in optimizing data recovery, saving both time and effort. 

9. Loss Prevention 

Without a cloud computing solution, your organization's valuable data is tethered exclusively to the office computers it resides in. While this may not initially appear problematic, the reality is that local hardware issues can result in permanent data loss. This is a more common problem than often realized; computers can malfunction due to various reasons, such as viral infections, age-related hardware deterioration, or simple user errors. Moreover, there's the risk of misplacement or theft.

Not being on the cloud exposes you to the possibility of losing locally saved information. In contrast, a cloud-based server ensures the safety and easy accessibility of all uploaded information, even if the computer you regularly use encounters issues, as it can be accessed from any computer with an internet connection. 

10. Automatic Software Updates 

Imagine being engrossed in an important project only to be interrupted by a "Software update required" message. Manual updates can be tedious, but cloud-based applications address this issue. With automatic software updates and regular upgrades, users can now redirect their time and energy toward core business operations.

Businesses no longer need their IT departments to handle manual updates. This saves both money and time that would otherwise be spent on external IT consultation. 

11. Competitive Edge 

Despite the growing popularity of cloud computing, some still opt to keep everything local. While that's a valid choice, it puts them at a clear disadvantage compared to competitors leveraging the benefits of the cloud. Implementing a cloud-based solution ahead of your rivals positions you further along the learning curve by the time they catch up.  

A recent Verizon study revealed that 77% of businesses consider cloud technology a competitive advantage, with 16% deeming this advantage significant. 

12. Sustainability 

In the current environmental landscape, merely placing a recycling bin in the breakroom no longer suffices for organizations claiming to contribute to planetary well-being. True sustainability requires comprehensive solutions addressing wastefulness at all business levels. Hosting on the cloud proves more environmentally friendly, resulting in a reduced carbon footprint.

Cloud infrastructures promote environmental proactivity by powering virtual services rather than physical products and hardware. This approach minimizes paper waste, enhances energy efficiency, and, by enabling employee access from any location with an internet connection, contributes to a reduction in commuter-related emissions.  

Final Thoughts 

The cloud provides enhanced flexibility, reliability, and increased performance and efficiency, contributing to lowered IT costs. Moreover, it fosters innovation, enabling organizations to achieve quicker time-to-market and integrate AI and machine learning into their strategies. These primary benefits, in turn, can lead to additional advantages, such as heightened productivity, support for remote workforces, and improved operational efficiency.

It's crucial to recognize that embarking on a cloud journey doesn't have to be an “all-or-nothing” scenario. For instance, many businesses find that adopting a hybrid approach extends the capacity and capabilities of existing infrastructure while still operating in an environment that aligns with the overall business needs. 

VNG Cloud empowers businesses to not only stay ahead of the technological curve but also to optimize their operations, innovate more effectively, and pave the way for sustained growth. Contact us to embark on a cloud journey that is personalized, efficient, and aligned with the unique requirements of your business.