8 Benefits of Cloud Migration & Why You Should Upgrade
As we enter into 2024, the cloud has become woven into the business landscape’s fabric.
In 2023, around 29% of organizations made use of cloud-based SaaS (software-as-a-service) for at least half of their enterprise applications. By 2024, this percentage is expected to climb to 40%, according to the KPMG and HFS Research Cloud Adoption Survey 2023.
Remaining competitive in modern business environments requires an innovative and adaptive approach to technological advancements. Companies that embrace change are likely to pull ahead, while those lagging in digital innovation may find themselves stuck in a rut.
While widespread cloud adoption is still a work in progress, the need for migration is evident.
To kickstart 2024, your business must consider the resilience of your current infrastructure and the potential benefits of a cloud migration.
What is a Cloud-Based System & How Does It Differ From Legacy Tech?
Over the last decade, cloud computing technologies have come to dominate IT.
A cloud-based system leverages cloud computing technology to provide businesses with the necessary digital resources, tools, and support to operate a seamless IT infrastructure.
Unlike legacy systems, cloud-based systems and platforms do not require on-premise servers and hardware — instead, these more modern systems utilize software solutions and remote data centers hosted by secure third-party providers.
Additional differences between legacy and cloud-based systems include:
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System
Accessibility:With legacy systems, access is often limited to onsite locations with physical access to the system hardware and devices. By comparison, cloud-based systems enable users to access applications and data remotely, enhancing workflow flexibility and overall productivity.
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Upgrade Requirements:
Upgrading legacy systems requires significant time and effort, often necessitating the partial or complete rewriting of existing applications. Meanwhile, cloud-based systems enable more frequent and simplistic upgrades that do not require hefty amounts of manual effort or large expenditures.
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Cost
Structure:Maintaining legacy systems often requires costly onsite equipment or equally costly partnerships with many different vendors. With a cloud-based system, organizations generally pay only for the resources they use. Cloud service providers often offer custom solutions that match an organization’s exact needs and budget.
We discuss these differences, and the advantages a cloud-based system offers, more in a moment — but first, let’s consider why upgrading to the cloud is so monumentally important in today’s business environment.
Why Your Business Should Upgrade to a Cloud-Based System
Simply put, the cloud is your ticket to unlocking modern-day efficiency.
Each component of a cloud-based system is designed to optimize data management and support critical business functions. Organizational departments are interconnected through the cloud, allowing for seamless sharing of business information and insights between internal teams.
Moreover, cloud-based systems offer exceptional efficiency, enabling on-demand access to the system’s services, applications, and data.
In general, cloud service providers come in one of three flavors:
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Infrastructure as a Service (IaaS):
An IaaS provider offers essential infrastructure components to an organization, such as computing power, storage, and networking resources. These resources are available on demand to users and are often the most basic form of cloud service a company can leverage. With an IaaS provider, organizations can supply their existing IT teams with the foundational resources for building a more modern and connected system.
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Platform as a Service (PaaS):
PaaS is one of the most popular cloud computing service models, offering not only a foundational cloud infrastructure but also the resources and support necessary for full development and deployment. The PaaS model provides enhanced data capabilities that help organizations create new value via improved business intelligence and data management processes. Additionally, PaaS can help organizations avoid the extra costs associated with buying and maintaining software licenses.
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Software as a Service (SaaS):
SaaS is an end-to-end cloud computing solution. Along with providing foundational infrastructure, development support, and deployment capabilities, a SaaS solution also provides businesses with ready-to-use and often customizable applications all through the Internet. A SaaS provider handles the majority of the technical aspects of cloud management, including both hardware and software management, allowing organizations to get a new or updated system off the ground with extraordinary speed.
Each type of cloud service provider comes with its unique benefits.
Whether IaaS, PaaS, or SaaS is right for your company depends on your specific IT needs and your current availability of digital resources.
The Benefits of Migrating to the Cloud
Migrating to a cloud-based system offers numerous advantages for businesses across all industries. Companies of all sizes can benefit from a cloud migration, as it can significantly reduce the technical complexity involved with operating a modern organization.
Here are some compelling reasons why your business should consider making the switch:
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Cost-Efficiency:
Traditional on-premises IT infrastructure requires substantial capital investments in servers, networking equipment, and data center facilities. These expenses can be prohibitive for small and medium-sized businesses, as well as a substantial drain on revenue for large organizations. Comparatively, cloud-based systems provide your organization with all of the digital and physical infrastructure necessary, eliminating the cost of system management. Moreover, cloud providers typically offer either pay-as-you-go or subscription pricing models, eliminating the need for large upfront investments in new technology.
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Scalability and Flexibility:
Cloud-based systems offer unparalleled scalability and flexibility. As your business grows or experiences fluctuations in demand, you can easily scale your computing resources up or down to meet your needs. This agility enables businesses to respond rapidly to changing market conditions and customer demands without undue delays. Whether you need additional storage space, computing power, developmental support, or anything in between, cloud providers can accommodate your requirements instantly.
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Data Availability:
The cloud enables remote access to your data, applications, and services from anywhere with an internet connection. This data availability is especially valuable in today’s digital landscape, where remote work and collaboration have become increasingly prevalent. With cloud-based systems, employees can seamlessly work from home, travel, or connect with colleagues across the globe. This also opens new opportunities for attracting global talent to your organization, thereby widening the talent pool you can hire from significantly. As a result, your organization establishes greater flexibility that can lead to improved overall productivity and talent retention.
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Disaster Recovery and Business Continuity:
Data loss and platform downtime due to unforeseen events can be detrimental to businesses — and in a time when extreme weather and climate events are becoming more and more prevalent, having a strong disaster recovery strategy in place has never been more crucial. Cloud-based systems provide robust disaster recovery and business continuity solutions. Your data is typically stored in multiple data centers, ensuring redundancy and data availability even in the face of hardware failures or natural disasters. Many cloud providers also offer automated backup and recovery services, making it easy to recover data and applications quickly.
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Security and Compliance:
Advanced security protocols are a major priority of cloud service providers. To ensure all data centers are adequately protected against modern threats, cloud service providers employ a host of different technologies and applications to monitor your threat levels, detect vulnerabilities, and report vital security information back to your internal teams. For businesses in regulated industries, such as healthcare and finance, cloud providers may offer compliance certifications and solutions tailored to meet industry-specific regulatory requirements. This can streamline and reduce the burden of compliance for your organization.
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Automatic Updates and Maintenance:
Cloud-based systems automatically handle updates, maintenance, and security patches. In turn, your organization does not have to sacrifice talent, time, or resources to perform these maintenance tasks manually. With a reliable cloud service provider, your software and digital infrastructure remain up to date, reducing the risk of security vulnerabilities or breaches. Moreover, automatic updates and maintenance provided by the cloud ensure you always have access to your chosen provider’s latest features and improvements.
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Cost Predictability:
Predicting and managing IT costs can be challenging for businesses. Cloud-based systems provide cost predictability by offering transparent pricing models. In most cases, cloud service providers only charge you for the resources and services you use, ensuring you are not dishing out extra funds for unnecessary technical features. Plus, without the need to allocate a portion of your budget to onsite equipment maintenance, you can redirect funds toward business innovation and growth.
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Competitive Advantage:
Cloud technology empowers businesses to remain competitive by providing access to cutting-edge technologies and tools. Whether you are leveraging AI and machine learning, big data analytics, or advanced development platforms, a cloud-based system allows you to deploy these technologies with ease and speed. As a result, your business has even greater opportunities to differentiate itself in both domestic and international markets.
How to Jumpstart Your Cloud Migration in 2024
It’s never too late to remedy being behind in the race to the cloud.
If your business has yet to implement and incorporate the cloud, this upcoming year may be a crucial time to update your infrastructure and business model. In April 2023, Gartner predicted that public cloud end-user spending would reach nearly $600 billion worldwide by the end of the year and that this growth would be spurred on further by emerging technologies like generative AI.
The fact of the matter is the cloud is becoming the standard expected by both businesses and consumers alike, making it vital to complete an effective and efficient cloud migration.
For businesses still sorting out their cloud strategies, one crucial step to take is finding the right cloud services provider. Rather than opting for a generic service, it is greatly to your benefit to seek out providers specialized in implementations for your specific industry.
Finding a provider willing to tailor their services to your business needs is advantageous for three key reasons:
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Custom Approach
to Compliance:Depending on which industry you operate in, you may have stringent compliance standards to deal with when migrating to the cloud. Choosing a cloud services provider specialized within your industry ensures that you have the proper expertise and talent available to help you navigate the challenges of a cloud migration through your specific business lens.
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Tailored Applications:
One tremendous benefit of the cloud is the additional flexibility it provides to software developers for customizing applications. With the help of a specialized cloud services provider, you can update existing applications and build new ones, all while tailoring these applications to the needs of your business and clients.
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Minimized
Downtime:A specialized cloud services provider can help you execute a phased cloud migration approach where less critical or more straightforward applications are moved first, allowing development teams to address specific issues before migrating more critical workloads. Additionally, a custom cloud migration enables you to plan and execute the migration process with minimal disruptions or downtime.
Utilizing managed services for your move to the cloud is also a financially savvy decision.
KPMG’s recent cloud adoption survey reports that companies have significantly increased their use of managed services in the past two years, with nearly 40% of business leaders using managed services for “major SaaS enhancements, including process customization and data integration.”
What these findings ultimately reveal is that cloud-based systems are vital not only for building greater business resilience and continuity, but also for reining in the manual IT effort you impose upon your team.
By relying on managed services to help maintain and optimize your cloud-based system, your team can focus on grander business objectives and client needs.
Final Thoughts: Staying Ahead with the Cloud
Cloud-based systems are a transformative force reshaping modern business operations.
The multifaceted advantages offered by cloud migrations are pivotal in fostering efficiency, innovation, and resilience. From the inherent flexibility of scalable resources to the accessibility of data from anywhere, the cloud enables you to tailor your infrastructure to meet the increasingly dynamic demands of the digital business environment.
Cloud solutions not only alleviate the burdens of on-premise maintenance but also drive cost-effectiveness through optimized cost structures. The ability to harness real-time collaboration and streamline processes enhances productivity, positioning organizations for sustained growth.
As we navigate an era of rapid digital evolution, embracing cloud-based systems emerges not merely as a strategic choice but a fundamental necessity.
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