Why Are So Many Small Businesses Adopting Cloud in 2020?

Six reasons why COVID-19 will accelerate the rush to cloud - Intelligent CIO Middle East

The impact of the pandemic has led to a dramatic rise in the number of small businesses adopting cloud technology. With nine out of ten companies now making use of cloud IT and 60 per cent of workloads being run in the cloud, it has become the go-to option for forward-thinking firms. By providing them with the same technologies used by larger rivals, but without the need for capital investment, the cloud delivers an affordable way to innovate, automate and become more agile. Here are just some of the ways small businesses are benefitting from cloud adoption.

Awesome power at low-cost

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In the age of digital transformation, companies need hi-tech solutions to help them compete. While technologies such as data analytics, AI, machine learning, IoT and automation are widely used, a lack of financial resources has left many smaller businesses out of the loop. However, by migrating to the cloud, companies can have access to the necessary infrastructure without having to invest heavily in setting up an on-site datacentre. All the hardware is provided by the service provider and paid for on a pay-as-you-go basis.

Furthermore, the cloud offers the ideal set-up for fast and easy expansion, enabling companies to scale up or down their IT resources on-demand, helping them to increase capacity in line with growth and cope with spikes in demand in a convenient way. Expansion that would take considerable expenditure and days of work to set up in-house, can be had cost-effectively at the click of a button.

New normal adaptation

Adapting to a new world

The pandemic has led many companies to reassess the way they operate, especially with regard to their working practices. Across the globe, swathes of employees are finding themselves able to ditch the commute and work more flexibly from home as executives seek to downsize offices.

Cloud technology is a key enabler of remote working, giving employees the ability to access the company’s IT resources anywhere with an internet connection. Firms can also make use of software as a service (SaaS) packages, providing them with a multitude of business applications, such as Microsoft 365, with which to carry out their work.

These technologies enable employers to offer flexible hours, recruit staff from further afield and reduce office occupancy. What’s more, they can also monitor staff productivity and task progress, as well as tracking inventory and shipping.

Better collaboration

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Over the course of the lockdown, the leading software companies have gone all out to improve the collaborative cloud-based applications that teams rely on. Existing apps have been enhanced and new ones created to provide far better video chat, messaging and document sharing platforms. Features such as group editing, instant syncing and project management, together with improved security, enable remote working teams to be assembled and collaborate on a wide range of initiatives.

Transformative technology in your hands  

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The cloud is the ideal place to benefit from today’s must-have technologies, like artificial intelligence, data analytics and the Internet of Things. Indeed, many of these are cloud-native, with applications that can be deployed at the click of a button in a cloud environment. What’s more, a lot of these cloud-based apps are open-source, meaning that they are free to use.

This means small businesses can take advantage of the cloud immediately, accelerating their ability to benefit from data-driven insights. As a result, they can reduce costs, improve operations and discover new opportunities much quicker than before.

Solid security

Rock-Solid Security - Krimzen

While security is a concern for every business, small firms have an additional issue when it comes to providing the in-house security expertise and resources to keep their systems protected. Migration to the cloud removes many of these headaches as the service provider will undertake a great deal of this work on their customers’ behalf.

Cloud providers have to comply with stringent regulations to ensure their infrastructure is robustly secure. By migrating to the cloud, small businesses will be automatically protected by a wide range of sophisticated security tools, such as next-gen firewalls, intrusion prevention apps and malware scanners – all of which are managed and maintained by security experts.

Swift recovery

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Data loss can have a devastating impact on a business: taking its services offline, preventing it from trading and damaging its reputation. Swift recovery is essential to minimise the impact.

Cloud-based backups are the ideal solution for disaster recovery: they store data at a geographically separate location to your cloud server; they are encrypted for security and checked for integrity, and they can be scheduled to occur at the frequency a company demands.

Perhaps most crucially, they enable companies to restore data, and even entire servers, quickly and easily, ensuring that disruption is kept to an absolute minimum. And with 24/7 technical support, the issue of internal expertise is easily overcome.

Conclusion

The pandemic has accelerated the pace of digital transformation, with growing numbers of small firms adopting cloud technology in order to adapt to the new business environment. Its cost-effectiveness and easy scalability, together with its wide range of open-source, easily deployable applications, make it highly attractive to companies that want to take advantage of the technologies and insights it offers.

Cloud Necessary for Digital Transformation? – Here’s Why!

Why Cloud is an essential foundation of successful digital transformation?

Across the globe, organisations are acknowledging the need for digital transformation as new technologies, like data analytics, AI, ML and the IoT make traditional processes redundant and force unprogressive companies out of business. At the same time, shifting customer needs and behaviours demand companies undertake digital transformation in order to evolve. Without the adoption of cloud technology, however, much of this would not be possible. Here, we’ll explain why.

Organisations which have migrated to the cloud and undergone digital transformation experience both significant growth and improved efficiency. It has enabled them to develop new business models that keep them relevant and thriving in today’s dynamic and volatile marketplace. Thanks to cloud technology, they can innovate at pace, make informed, data-driven decisions and speed up the launch of products and services. What’s more, this is achieved more cost-effectively and efficiently.

1. Cost-effective IT solution

Cost Effective - WindSmart Systems

The cloud provides organisations with the opportunity to develop a much more cost-effective business model where the need to invest heavily in IT infrastructure is no longer required. By hosting their services and carrying out workloads on the infrastructure of their service provider, not only do they replace significant capital expenditure with less expensive service packages; they also forego many of the associated costs of operating a datacentre, including machine maintenance and server management.

2. Agility

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The speed at which servers and software can be deployed in the cloud and the rapidity with which applications can be developed, tested and launched helps drive business growth. Additionally, this agility enables organisations to concentrate on more business-focused issues, such as security and compliance, product development or monitoring and analysis, instead of using up precious time and effort provisioning and maintaining IT resources. Together, these cloud attributes give companies a competitive advantage in the marketplace.

3. Scalability

Scalability Testing

Another key advantage that cloud brings to digital transformation is instant scalability. It provides businesses with a cost-effective, pay-per-use way of scaling up, on-demand, to ensure it always has the resources it needs to cope with spikes or to carry out large workloads. This means the expensive practice of purchasing additional servers to cater for busy periods but which are left redundant for much of the time is no longer necessary.

4. High availability

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Today’s customers demand uninterrupted, 24/7 access to products and services and putting this in place is a key aim of many companies’ digital transformation. Similarly, some businesses rely on critical apps for processes, such as manufacturing, that also need to be operational at all times. What the cloud brings here is guaranteed high availability of 100% uptime. As cloud servers are virtual, instances can be moved between hardware and this means that downtime due to server failure becomes a thing of the past for cloud users. Indeed, even if an entire datacentre goes offline because of a natural disaster, service can be maintained by moving the instances to a datacentre in another geographical location.

5. Security and compliance

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Security and compliance are a high priority for all companies and are often a major challenge to those with in-house systems that lack both the budget and expertise to put effective measures into place.

The cloud can play a significant role in improving both security and compliance. Service providers employ highly skilled security experts and deploy advanced tools to protect their customer’s systems and data and to comply with their own stringent regulations. This ensures cloud users operate in highly secure environments, protected by next-gen firewalls with intrusion prevention systems and in-flow virus protection that detect and isolate threats before they reach a client’s server.

6. Built-in technology upgrades

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Keeping up with the Joneses as far as technology is concerned is always a challenge for organisations, not simply for the cost of regularly purchasing newer hardware, but also the effort of migrating applications and data during the process.

By adopting cloud technology, companies no longer have this issue. Service providers regularly update their hardware in order to remain competitive themselves and this ensures that their customers benefit from always having the latest technology, such as Xeon processors and SSD hard drives, at their disposal. What’s more, virtualisation means any migration to new hardware takes place unnoticed.

7. Collaboration and remote working

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Digital transformation involves the replacing of outdated working practices and legacy systems with those that support innovation and agility. The cloud is the ideal environment for this, providing both the ability for remote working and improved collaboration. Many cloud-based platforms have been developed with collaboration in mind, offering video conferencing, file sharing, syncing and project management tools for teams to use in and out of the office. Files are instantly updated and are available anywhere with a connection; privileges and authentication can be determined for every employee, and projects, people and progress can be monitored and tracked.

Conclusion

Digital transformation is fast becoming a necessity for organisations, providing the means to help them be more agile, innovative, cost-effective and competitive while being better able to meet the needs of their customers. Cloud technology is instrumental in bringing this about as it offers the ideal environment in which to deploy the technologies and undertake the workloads on which digital transformation depends.

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Moving to the cloud was supposed to be simple, right? So why are many IT managers — even those experienced in IT change — finding cloud adoption far more difficult than they expected?

One big reason is that moving to the cloud represents a new and different kind of change. The cloud involves not only IT, but also makes possible business models that were unimaginable or impractical even a few short years ago.

Complicating matters further, many organizations have realized that some enterprise applications may never move to the cloud. Instead, those applications will do best remaining on premises. Even among those that are good candidates for the cloud, there are interesting decisions to be made about what level of transformation is appropriate to potentially drive greater business value out of that application in the cloud, as well as decisions about how to integrate cloud and traditional workloads. In short, it’s complicated.

To help, here are six best practices for moving to hybrid IT

  • Make the cloud a business decision. Digital transformation at its heart provides a new strategy not just for IT, but also for the business. It empowers business leaders to transform processes, improve the customer experience, and more — all with new business models. Getting the technology right is of course vital. But it must be done in alignment with and in the context of serving the entire business. Businesses and IT must align around a product management approach.

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  • Take DevOps to the next level. Moving to a hybrid cloud environment means looking differently across the entire operating model. Smart organizations will use DevOps to explore and use the marketplace of cloud services and change their IT operating model to do so. However, this isn’t an environment where you’re just using a new technology to simply provide the same services with the same controls. In fact, the opportunities to do “new things in new ways” are tremendous but the threat landscape is different, and the compliance opportunities are different, too.

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  • Before moving workloads, collect hard data. Some applications perform best in a public cloud, some in a private cloud, and some by remaining on-premises. How to make this determination? Look for true business value at the outcome level. There are tools available that can analyze performance-utilization data to map workloads to their best possible configuration in the public cloud. Other useful tools can assess performance data for specific workloads.

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  • Get value from your data. Established enterprises have a big advantage over startups: They possess years’ worth of valuable data. However, enabling and extending the value of that data may not be easy, especially if it resides on legacy systems. Once again, a hybrid approach to data management can help, as some legacy systems can be moved to the cloud, while others will need to remain on-prem (though still integrated with cloud environments). Organizations will need to tackle the infrastructure, the applications and the data together. If this is done in a modular “Fix Today and Enable Tomorrow” type approach it can deliver the additional value to the enterprise in small, bite-sized chunks.

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  • Create a cloud model that scales. When moving to the hybrid cloud, it can help to think like a restaurant owner. First, have “chefs” come up with recipes (architectural patterns). Then have “cooks” who can repeat those patterns many times at scale to move the workload. Also, start with quick, sure “hits.” That way, you’ll gain confidence and experience, while also amassing a persuasive collection of early successes. Note: These tasks may be outside the scope of most organizations (skills, know-how and scale) and may therefore require the help of a partner model.

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  • Regularly update your roadmap. Because every organization is unique, its roadmap to hybrid IT will need to be unique, too. But that roadmap must be able to change and adapt as the organization makes progress and learns new lessons, especially as the marketplace of cloud services is changing so rapidly. Today’s perfect plan won’t be perfect tomorrow when new services have enabled or automated a lot of what you were planning to do.

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Don’t go it alone

Throughout the process, remember that the days of one-technology solutions are long gone. These are now replaced by a myriad of technology solutions to consider. So you need a partner to help you navigate both the technology and business landscapes, one that isn’t locked into any particular technology stack.

Much of the change will be cultural, as your organization adopts new ways of working, innovating and developing. A good partner can provide you with the baseline for building a hybrid-IT plan that’s effective, innovative and secure. They can also scale, helping you launch, adopt and run the transformation.

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