Understanding Cloud Computing and Driving Factors for its Demand

Understanding Cloud Computing and Driving Factors for its Demand

Having their own motivation, businesses of all sizes, geographies and industries are now being open to cloud-based services. Cloud computing allows businesses access different software applications and programs through the internet.

Even in day-to-day life, people are using cloud computing services without being much aware about it. When you are posting an update on Facebook, you are in the cloud. Even when you are checking the status of your flight online, you are using cloud computing. Cloud computing stands for any computing based on the internet, and can also provide solutions for most of the challenges faced by small, medium and large-sized businesses.

According to Goldman Sachs, the investment on cloud computing platforms is likely to grow at 30 percent CAGR from 2013 to 2018. Along with Software as a Service, Infrastructure as a Service and Platform as a Service are also gaining momentum.

Another study by the Cloud Security Alliance says that around 86 percent of companies are spending a significant part of their budget on cloud computing. With organizations adopting the ‘full steam ahead’ attitude for cloud computing services, the market of SaaS is likely to take a jump. There are various demand drivers for cloud adoption, such as, improved productivity, lower costs, round-the-clock availability, and many more.

Flexible Capacity

Businesses with flexible bandwidth demand are finding the best solution in cloud computing. Cloud-based services allow businesses to scale up and down their cloud capacity. With cloud-based services being hosted in remote servers, there is not much dependence upon on-premise network infrastructure. Cloud-based services also provide businesses the competitive advantage, as data can be accessed quickly from anywhere and critical decisions can be taken at the right time.

Automatic Software Updates

The benefit of cloud computing lies in the fact that its off-site servers are managed by suppliers themselves. Suppliers roll out regular software updates, and businesses don’t have to manage and maintain the system on their own. Software updates are managed at the third-party location, allowing businesses to focus more on ways of improving growth ratios. 

Increased Collaboration

With cloud-based services, employees can access, edit and share data anytime and from anywhere. This helps in building an improved team collaboration to perform tasks efficiently. Cloud-based document sharing applications also allow employees to update any document, with every other authorized user being aware of the edits.

Disaster Recovery

Larger organizations have the capital to invest in a robust disaster recovery infrastructure, but small and medium-sized businesses often don’t have the budget for it. Cloud-based backup and recovery solutions can provide SMBs a disaster recovery system being hosted on the third-party server. Thus, small businesses can enjoy the benefits of a cloud-based disaster recovery system without making any large up-front investment.  Also, the expertise of third-party disaster recovery service provides can prove quite helpful for SMEs.

Document Control

With too much back and forth of documents via email attachments, there are chances of conflicting file content and format. With several users working on the same file but at different locations, there are higher chances of such conflicting situations. But with cloud-based document management and control, all files can be stored, edited, and shared centrally. At a time, every authorized user can see different versions of a file. This leads to an improved workflow and collaboration.


Lost laptops mean the loss of an expensive computing tool and the fear of sensitive data going in wrong hands. Similarly, misplacement of physical files and the failure of computer systems can lead to data loss. But with cloud computing, businesses can enjoy complete data security in any circumstance. As data are stored in the cloud, they remain intact even if a laptop is lost or damaged.

Improved Mobility

Whether employees are working from home or remote locations, they can access all company-related data stored in the cloud. Also, through Unified Communications as a Service (UCaaS), employees can come together on a single virtual platform to discuss important developments, irrespective of their current location.

Basking in the benefits of cloud computing, businesses are widening their horizon of growth and success.

Add to Favorites
About The Author
Kalpana Araya
Kalpana Araya Kalpana is an inquisitive tech enthusiast who loves reading & writing everything under the sun. Currently writing for Tech, SAAS, IT Hardware and Software products. She is a Digital expert with 5+ years of experience in the industry.