There comes a time in the life of every business—an inflection point—when CEOs and CIOs begin to consider the possibility of moving business-critical applications from aging servers to the cloud. That decision, of course, encompasses a wide range of issues, everything from security concerns to cost-effectiveness, tax implications, flexibility, and compliance challenges, all of which will necessarily inform this critical decision.
CLOUD MIGRATION IS INCREASING
An increasing number of businesses now see several benefits of moving to the cloud—according to TechRepublic, for example, the number is now almost 70% of businesses:
"Nearly 70% of enterprise organizations are currently migrating data for enterprise resource planning (ERP) applications to the cloud, according to a Friday report from the Cloud Security Alliance…Top cloud migration concerns among the 200 managers, executives, and enterprise staff surveyed globally include the moving of sensitive data (65%), security (59%), compliance challenges (54%), disruption of business operations (47%), and time to migrate data (46%)."
WHAT ARE THE CHIEF BENEFITS OF CLOUD MIGRATION?
Every business is different, of course, with various concerns and challenges, and only you can decide if moving business-critical data to the cloud makes sense for yours. Therefore, those businesses which have already moved to the cloud (according to the Security Alliance survey) have done so to take advantage of several key benefits of cloud migration, including the following 5:
- Increased flexibility: businesses change over time, as do their computing and bandwidth needs. Cloud computing enables companies to scale up—or down—as needed. It's one of the reasons surveyed businesses listed "operational agility" as their primary reason for cloud migration.
- Enhanced security: protecting sensitive data—particularly sensitive customer data—is a major concern for every business, and with good reason. According to a University of Maryland study, a hacker attack occurs every 39 seconds, and the average cost of a data breach will top $150 million in 2020. Cloud migration substantially increases data security. Also, cloud service providers automatically update security software, ensuring your data is safe now and into the future.
- Cost-effectiveness: moving to the cloud saves businesses money. For one thing, companies that move to the cloud can sometimes reduce the size of their IT staff (or empower their current staff to focus more on issues central to the success of their companies), reducing both salary and payroll taxes. For another, cloud computing offers a substantial tax advantage, since CFOs can move expenditures from the capital to operational expenses. Finally, migration to the cloud reduces computer hardware costs.
- Increased mobility: with cloud computing, you and your employees can access key documents from any location. This enhanced mobility provides a significant competitive advantage for businesses that move to the cloud. When all your employees need to complete assignments are a working internet connection, they become more productive, which ramps up profitability. It is also easier for them to collaborate on projects critical to your success. Finally, the mobility that comes with cloud computing enables you to offer flexible work options, like telecommuting, increasing both employee engagement and productivity.
- Competitive advantage: in several important ways, moving to the cloud levels the playing field, enabling small businesses to compete effectively with large, enterprise organizations. For one thing, those small and mid-size companies gain access to robust technologies, which would typically be too cost-prohibitive if they were to acquire them on their own. Cloud migration enables a "lean and mean" approach to computing, one which reduces costs, freeing up money for more mission-critical strategies like research, development, and marketing.
Leveraging the several benefits of cloud migration is one way to ramp up your competitiveness, reduce costs, enhance profitability, and boost productivity—but it is not the only one. To achieve your top business objectives, you need a comprehensive, proactive IT management strategy.
To learn more about the ways we help business assess a potential move to cloud computing—contact us today.