A report from analyst house Clutch revealed that two thirds of medium and large enterprises plan to increase their spent on cloud computing in 2016. 



Not only does cloud computing enable business to scale up but also helps them stay one step ahead of the competition as well. 

If you are concerned about the growing expenses of maintaining dedicated servers, then moving to the cloud might solve a lot of your problems. Cloud computing has been here for quite some time now, and it's no secret that cloud is a competitive differentiator. Embracing cloud can help you balance cost and performance.

If your organisation is still hosting data on dedicated servers, the cost associated with its maintenance and scale can become a challenge. It’s difficult to estimate the amount of storage your organisation might need in the coming five, six or even ten years. So, unlike dedicated hosting, storing data on a cloud platform can definitely give you more flexibility.

If you have dedicated servers, you probably won’t be able to realise its full potential, especially if your organisation is in its initial years of business. On the other hand, your organisation might suddenly start to generate so much data that you have to invest heavily in more servers to shoulder it. Either way, dedicated server hosting becomes an expensive proposition for your cost sensitive business. 

Reduce expenses and downtime

According to an International Data Corporation (IDC) report, due to hosting data on dedicated servers, more that 80 percent of SMEs globally have experienced downtime in the past. The cost of such unexpected downtime can conservatively range from $82,200 to even $256,000 for a single event. That’s a lot of money, especially if you are a small business (startup or not).

The research firm pointed out that approximately 76 percent of SMEs cite downtime (due to failure of dedicated servers) as the single biggest driver for adopting cloud.

IDC also claimed that SMEs around the world will continue to shift investments from on-premise dedicated servers to public and hybrid cloud to achieve robust, simple-to-use and cost-effective business continuity.

IDC claimed that the cloud computing market in Singapore will reach S$1.4 billion by 2017. According to a research by Asia Cloud Computing, Singapore stands second, just below Japan, when it comes to cloud market attractiveness. Here is an interesting table that aptly displays where Singapore stands with regards to the cloud market in different areas.

IDC also found that there is a clear association between revenue growth and cloud usage for SMEs. In fact, the research firm revealed that research shows small businesses using the cloud are 1.7 times more likely to have more than 10 percent revenue growth, compared to small businesses who run on dedicated servers. 

Your data is safe in the cloud

Reducing costs in terms of maintenance, performance and scale by using cloud might not be something new to business owners, but why is it that some of them are still shying away from migrating to the cloud? Well, the answer might be security.

There was a time when security concerns became a hurdle for cloud adoption, but that’s history now. As business leaders, you are already aware that internal threats also happen to be a major reason for security breaches. So, it’s not always right to blame your cloud provider for all security vulnerabilities.

Forrester Research reported that 25 percent of all security breaches faced by businesses are caused by malicious insiders, while an additional 36 percent come from employee mistakes.

Since security is a primary concern towards adoption, cloud providers have no way out but to constantly invest in world class security standards to loop in more customers. So with that in mind, you can be assured that your data is safe in the cloud.

Contrary to popular beliefs, 74 percent of the respondents (according to the IDG EnterpriseCloud Survey) are either confident or very confident with the security standards of their cloud providers.

Maintaining dedicated servers itself demands huge capital expenditure, and if your organisation needs to constantly spend on security upgrades for servers, your revenue margins will keep shrinking. What that simply means is, it’s better for your business if you migrate to the cloud.

In short, cloud hosting gives your business access to reliable and advanced technologies, at an affordable cost, something that traditional dedicated cannot provide. If you’re still pondering on whether to embark on a cloud journey or not, here is a case study that might help. 

Cloud computing the answer to downtime

At a time when IT leaders, especially in Asia are still figuring out reasons to move to the cloud, Aditya Berlia, Member-Management Board, Apeejay Stya and Svran Group, actually did something that will boost your confidence in cloud computing.

Apeejay Stya and Svran Group is a renowned family business in India, and with no second thoughts, the company completely migrated to the public cloud to address challenges pertaining to dedicated servers and downtime.

Berlia in an interview with CIO.in claimed that by moving to the public cloud, they successfully reduced the number of servers by 80 percent. Their capital expenditure and upgrade cycles also went down by 90 percent. And even more interestingly, the entire IT team was reduced to just three members, from a previous tally of 30, which means manpower cost was also cut significantly.

Also, according to a Computerworld study, in 2015 cloud computing stood second with regards to areas where enterprises planned to invest the most. 



If you’re are still looking for inspiration to move to the cloud, just keep in mind that large enterprises like Netflix, Xerox, Instagram, Pinterest, Apple, MediaMath, Etsy and many others fully trust the cloud and have either started in the cloud, or have migrated there.

So, if these big players can embrace cloud, given the stakes involved, your organisation will be able to safely embark on a cloud transformation journey with a peace of mind.

 



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