Cloud Computing
As more and more data is stored, exchanged, and processed, the need for sufficient space and computing power grows. Cloud Computing provides a customized solution capable of accommodating a business’s needs at an affordable price.
The need for storage and computing power has been steadily increasing over the last few decades, however, due to data-heavy technologies emerging over the last few years (such as IoT and Data Analytics), this demand has spiked. By 2025 there is expected to be over 175 zettabytes of data worldwide, 49% of which will be in the cloud [1]. Furthermore, in 2020, 61% of companies migrated to the cloud to increase remote productivity, and as of 2022, 94% of enterprises have adopted cloud computing[2].
Cloud Computing refers to a network of remote servers used to store, manage, and process data across the internet, eliminating the need for local machines, servers, or data centers. Most cloud providers charge based on usage, so customers can easily scale up or down to accommodate their needs while only paying for the resources they use. Currently, cloud computing is separated into three categories; Infrastructure as a service (IaaS), Platform as a service (PaaS), and Software as a service (SaaS).
With IaaS, a cloud vendor provides all infrastructure services such as storage, computing, and virtualization, however, the customer is still responsible for the operating system and applications. PaaS goes a step further, with the cloud vendor providing the whole platform to the user as an integrated solution or service, giving the customer the ability to develop and manage their own applications without having to provision and maintain the platform infrastructure (OS, storage, networking, etc.). The final category SaaS is the most comprehensive solution, with the cloud vendor providing and managing the whole environment and application, which is then accessed by the customer via the internet.
Key Benefits:
Cloud computing is extremely versatile by nature, yielding a multitude of various benefits based on market sector and implementation. Some of the most prevalent advantages of cloud computing include: Cost Savings, Data Protection & Security, Remote Access, Large-Scale Data Analysis, and Streamlined Updates & Monitoring.
Cost Savings: When utilizing cloud computing and storage, environments can easily be scaled up or down to accommodate any business need, while ensuring customers only pay for the resources used. Cloud-based solutions also eliminate the need for overhead such as local machines, servers, or data centers. Furthermore, leveraging a cloud solution can reduce or eliminate the need for resources to manage the hardware and/ or software (depending on what cloud offering is selected).
Data Protection & Security: Cloud providers build in redundancies, backups, and disaster recovery features to protect user data in case of a system failure, cyber-attack, or other issues. Also, cloud vendors utilize a variety of security features such as encryption and user authentication to ensure all user data remains private and secure.
Remote Access: With cloud computing solutions, companies can access their applications and/ or data from anywhere at any time. This can significantly improve business performance and collaboration, especially in instances where employees are working remotely.
Large-Scale Data Analysis: Surveys and analysis rely on large amounts of data to ensure accuracy, however, storing and analyzing data requires a lot of space and computing power. By utilizing cloud computing, multiple analyses can be performed concurrently without having to worry about local storage limitations or computing power. Similarly, technologies such as Internet of Things (IoT) generate vast amounts of data regularly, which needs to be stored and easily manipulated to be useful. The various cloud models and platforms have been tailored and refined to handle these operations efficiently, while possessing the ability to be scale up or down to handle the varying amounts of data.
Streamlined Updates & Monitoring: Cloud environments allow for the seamless integration of common DevOps and logging tools, which expedites application updates and monitoring, increasing productivity and reducing issues in production. Furthermore, infrastructure updates and bug fixes are handled by the cloud vendor which allows customers to worry less about updating and maintenance, and results in less downtime.
Market Outlook:
Over the last few years, the cloud computing market has skyrocketed. In 2022 the Cloud Computing market was estimated at $414 billion, with an expected growth rate of 13.8% annually. Based on the current growth rate, it is projected that the cloud computing market will reach $881.8 billion by 2027 [3]. The cloud computing market has typically been dominated by financial, retail, and entertainment companies, but since 2020, many other market segments have started utilizing cloud computing with stellar results.
While the cloud computing market continues to grow, the demand for storage and computing power also increases, with 90% of all data worldwide having been created in the last 2 years. Additionally, data-heavy technologies such as IoT will generate an estimated 90 zettabytes of data by 2025 (more than 50% of all data worldwide), further increasing the demand for computing solutions to effectively store, manage, and manipulate all of this data[1].
BwB Advisors' Methodology for Adopting New Technologies:
The business world and the technological world must evolve parallel to each other. No matter your organization’s industry, implementing new technology in an organization is vital for staying competitive in the dynamic markets of today. Nevertheless organizations should proceed cautiously in deciding which technologies are needed and how to implement them — one size does not fit all.
At the BwB Advisors, our Technology Adoption Methodology (TAM) follows a 6 phase process and provides a complete roadmap from identifying an advantageous technology all the way through its deployment so that your organization can ensure success.
To learn more about us and our Technology Adoption Methodology click here.
March 2023 / Insights / By: Michael T. Casarona
References:
[1] Data Growth Statistics: Growth rates over time. Data Growth Statistics: Growth Rates Over Time. (n.d.). Retrieved January 29, 2023, from https://www.aparavi.com/resources-blog/data-growth-statistics-blow-your-mind
[2] 25 amazing cloud adoption statistics [2023]: Cloud migration, computing, and more. Zippia 25 Amazing Cloud Adoption Statistics 2023 Cloud Migration Computing And More Comments. (n.d.). Retrieved January 29, 2023, from https://www.zippia.com/advice/cloud-adoption-statistics/#:~:text=Now%2C%20as%20of%202022%2C%2094,improvements%20after%20adopting%20the%20cloud.
[3] Public cloud - worldwide: Statista market forecast. Statista. (n.d.). Retrieved January 30, 2023, from https://www.statista.com/outlook/tmo/public-cloud/worldwide#revenue
