Cloud Computing in Digital Transformation: What You Need to Know

Exadel Cloud Team Business January 25, 2024 14 min read

Table of contents

Cloud Computing in Digital Transformation: Basics
How Cloud Computing Enables Digital Transformation
What Are the Risks of Not Using Cloud Computing in Digital Transformation?
How to Incorporate Cloud Computing into the Digital Transformation Process
Become a Digital Leader with Cloud Computing in Digital Transformation

Cloud Computing in Digital Transformation: Basics

Cloud computing involves delivering IT resources on-demand and over the Internet. Instead of buying, owning, and maintaining physical servers and data centers, businesses can access technology services as needed from a cloud provider.

If you’re new to the idea of cloud computing in digital transformation or just want to understand it better, these are some of the questions you might be asking yourself:

What Are the Different Types of Cloud Deployment Models?

Three primary types of cloud deployment models:

Private: An organization uses proprietary architecture and runs cloud servers from its own data center.
Public: A third-party provider makes resources available to the general public.
Hybrid: A mix of private and public services.

Three main types of cloud computing:

Infrastructure as a service (IaaS): A cloud services provider provides foundational services like computing, networking, and storage.
Platform as a service (PaaS): A cloud-services provider delivers hardware and software tools.
Software as a service (SaaS): A cloud-services provider gives access to software tools.

The specific combination of deployment models and types will vary depending on your company’s needs and goals.

Is the Cloud Secure?

Yes. In fact, the cloud is generally more secure than most private data centers.

Cloud infrastructure providers also provide a variety of tools and architectural options to help with workload isolation, data encryption, and threat detection.

Which Workloads Can I Move to the Cloud?

You can use the cloud in digital transformation for just about anything, but businesses often use it for short- and long-term data backup. They also move application-based workloads like customer relationship management and marketing automation.

Do I Have to Move My Whole Company to the Cloud?

You don’t have to move your entire company to the cloud during the digital transformation process if you don’t want to. It’s relatively easy to move the parts you want to move and leave the rest as they are (although you will then have to pay for two types of storage, on-premise and cloud).

How Cloud Computing Enables Digital Transformation

The following are some of the most noteworthy examples of the role cloud computing plays in the digital transformation process:

Increased Accessibility

One of the greatest advantages of cloud computing in digital transformation is increased accessibility.

Cloud computing makes data accessible on a variety of devices and to a wide range of employees. As a result, it’s easier for everyone to receive up-to-date information and stay informed on the latest project updates and changes.

Increased accessibility also enables employees to work from multiple locations, saving them from being confined to the office and allowing them to work at the times and places where they are the most productive.

Improved Collaboration

Collaboration is critical to any business’s success, and technology has the ability to improve communication and collaboration throughout the entire company.

Cloud computing in digital transformation might empower employees to work from anywhere and spread out more geographically, but it can also bring people together and help them get more done.

With the help of cloud-based technology, you and your team can stay connected no matter where you are. That means you can work more efficiently and ensure you’re always working with the most relevant and accurate data.

More Security

Every business owner wants to trust that their data is secure, especially when you work with financial details, medical records, or other types of sensitive information.

The cloud is generally more secure than many other solutions, especially when you’re working with a private or hybrid cloud.

By utilizing cloud computing in your digital transformation process, you can trust that your company and customer data is safe. You can also incorporate additional security measures, such as encryption, to protect particularly sensitive data further and experience greater peace of mind.

Greater Cost Savings

Digital transformation can be expensive, but the upfront costs—including the upfront costs associated with moving operations and applications to the cloud—are worthwhile when you consider the additional benefits they provide.

On average, cloud migration can reduce IT spending by 15 percent. For small and medium-sized businesses, the savings are even greater at 36 percent!

If you’re looking for a solution that can provide a significant return on investment and help you make your company more profitable long-term, cloud computing is undoubtedly worth considering.

Increased Scalability and Elasticity

It’s frustrating when your company outgrows its infrastructure. Fortunately, cloud computing reduces the chances of this happening.

Cloud computing in digital transformation works according to the virtualization principle—which states that virtual machines can easily be scaled up to meet a business’s needs. In other words, virtual solutions are flexible and better equipped to manage increasing workloads and applications.

Cloud solutions in digital transformation also allow for both vertical and horizontal scaling:

Vertical scaling: More storage and processing power can be added as the platform needs increase, allowing the system to hold more data or increase power.
Horizontal scaling: More servers can be added, dividing workloads across more virtual machines, ensuring higher uptime rates and improved performance across the board.

In addition to increased scalability, cloud computing also offers greater elasticity. Cloud elasticity refers to the ability to grow and shrink based on specific requirements, such as memory or storage.

Increased elasticity allows for better cost management since you only have to worry about paying for what you need and use.

Increased Reliability

Along with scalability and elasticity, cloud computing in digital transformation also provides a greater level of reliability.

Generally, cloud applications are faster and less prone to downtime and other productivity issues. These features can contribute to a faster-paced and more efficient work environment for you and your team.

Working with the cloud in digital transformation also means your services aren’t impacted by hardware failures. With the help of processes like cloud visualization, you can identify and resolve issues sooner, allowing for greater productivity and less overall downtime.

Access to Advanced Analytics

With access to the cloud in digital transformation comes access to advanced analytics options — especially if you work with the right cloud provider.

When you switch to the cloud, you can access insights into your customers and their behavior, as well as that of your competitors.

This data helps you to make more informed decisions, which are more likely to yield superior results for your business (including increased returns on your investment) and work smarter rather than harder.

More Automation Options

Finally, there are more opportunities and options for automation when you migrate to the cloud and include cloud computing in your digital transformation strategy.

From automated backups to automating time-consuming workflows, cloud computing can help you and your team save time, do more with less, and set your company up for long-term success and profitability.

What Are the Risks of Not Using Cloud Computing in Digital Transformation?

In addition to experiencing the benefits shared above, cloud computing can also help you avoid certain complications that you may be more vulnerable to during the digital transformation process.

Here are some of the most significant risks and challenges of not using cloud computing in digital transformation you can prevent:

Security Breaches

When implemented correctly (and when employees are educated on best practices to help them mitigate security risks), cloud computing can significantly reduce security issues and help you and your team keep sensitive data safe.

On the other hand, if you avoid incorporating cloud computing into your digital transformation strategy, you could be opening your company and customers up to data breaches and other security challenges.

Decreased Productivity

From providing access to more advanced data to automating workflows, cloud computing in digital transformation offers numerous options that can improve your team’s productivity and allow them to get more done in less time.

If you underestimate the role of cloud computing in the digital transformation process, though, you may end up experiencing less productivity (and more significant losses as a result).

Lost Business Opportunities

If your business is slow to move to the cloud, you may miss out on a lot of potential business opportunities.

For example, customers may overlook your company for one that does utilize cloud-based solutions already, making it harder for you to keep up with your competition. Particularly if your business model is B2B.

Furthermore, you may have a harder time attracting top-tier talent—including people who want to work with organizations that use the latest technology.

How to Incorporate Cloud Computing into the Digital Transformation Process

If you’re intrigued by the benefits of cloud computing in the digital transformation process and want to ensure a smooth transition, be sure to keep these best practices in mind:

Put People First

Always put people first—namely, the people at your company who will be using the new cloud solutions the most—when making plans for digital transformation and moving your operations to the cloud. Talk to your staff about their experiences, the pain points and problems they encounter, and how cloud computing and digital transformation can help. When you keep them in mind, you’ll naturally make the decisions that benefit your business the most and help you (and your team) see stronger results now and in the future.
Set Specific Goals

The digital transformation process and process of moving to the cloud become more manageable when you have specific goals that you’re working toward. Setting and measuring progress toward these goals will help you ensure you’re on the right track and let you know when you need to make adjustments or ask for assistance. Digital cloud computing transformations can also be overwhelming — particularly when you consider the myriad options they open up to you and your staff. Setting specific goals helps to prevent overwhelm and ensure you get the most out of the transition.
Prioritize Data

Make your decisions based on data. Focus on data regarding productivity, feature utilization, return on investment, and other key metrics that you want to use to measure progress and ensure your business is on the right track. If you notice patterns, don’t brush them off. Use them as motivation to make positive changes.
Consider the Customer

In addition to considering your employees and their needs, don’t forget to think about the customer, too. For example, how will the way the customer interacts with your business change as a result of digital transformation? What hurdles might they face, and how can you help them overcome them as quickly as possible? Keep the customer in mind to ensure you’re genuinely providing them with a better experience—which is one of the primary benefits of digital transformation.
Partner with Experienced Professionals

Finally, digital transformation and cloud migration become much more manageable when you work with experienced professionals who can guide you through the process. It doesn’t matter how tech-savvy you are. It always helps to have someone more experienced and specialized on your side. Working with professionals saves time, helps you implement new programs and processes sooner, and gives you more room in your schedule to focus on other responsibilities.

Become a Digital Leader with Cloud Computing in Digital Transformation

Whether you work in banking, retail, or any industry in between, digital transformation—when done correctly—can help you enhance your offerings, streamline workflows, and provide customers or clients with a superior experience.

To increase your chances of succeeding, consider utilizing cloud computing technology in digital transformation. Cloud computing increases accessibility, improves collaboration, enhances security, and much more.

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