8 benefits of cloud computing for small businesses

July 4, 2023

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Why you should consider cloud computing

Many small to mid-sized businesses (SMBs) have discovered the benefits of cloud computing in recent years. In fact, two-thirds of SMBs surveyed in 2022 have moved their workloads to the cloud, and 63% have uploaded their data to the cloud. In addition, researchers predict that companies who are in the process of moving their IT infrastructure to the cloud will rise from 41% to 63% in 2024. But what exactly are the benefits of cloud computing and why are so many SMBs making this transition?

Cloud computing service models can provide SMBs with access to tools, programs and apps that make more economic sense for smaller companies. Low upfront costs combined with scalability and flexibility make cloud computing a viable option for businesses of any size. Here are some examples of how cloud computing has benefitted SMBs:

A restaurant’s online orders climbed from 50,000 a day to 400,000 a day during the pandemic lockdowns. Despite this increase, their app didn’t crash and could handle the increase in volume because it was already integrated with the cloud.

A car manufacturing company used a cloud platform to consolidate real-time data and offer insights on shop floor processes. The results allowed them to optimize their operations and shave 30% off factory costs.

These are just a couple of ways that cloud computing can benefit your SMB. Before we go into more detail, let’s first define what cloud computing is.

What is cloud computing?

Cloud computing allows data, apps and tools to be stored, connected and delivered over the Internet. It eliminates the need for SMBs to host their own IT servers, while giving them the agility to only pay for what they use. These pay-as-you-go solutions are known as cloud service models, and come in 3 main varieties:

Infrastructure as a service (IaaS) allows you to rent IT servers, storage and networks from a cloud provider. These offerings help SMBs take advantage of setups that handle different workload needs.

Platform as a service (PaaS) gives SMBs access to cloud-based tools like apps and web portals. These platforms are often used for online marketing, raising awareness and addressing specific business needs.

Software as a service (SaaS) allows SMBs to use software over the Internet. This software is usually accessed via a web browser, desktop client or an app. SaaS applications help employees collaborate on projects, download important files and work directly on specialized programs.

What about security?

It’s true that one of the biggest concerns that SMBs have about cloud computing is security. Of 750 cloud decision-makers and users surveyed, 73% highlighted security as their top challenge with the cloud. You may be wondering how to evaluate your cloud service provider (CSP) for their security services. However, the fact is that this is largely unnecessary, as most well-known CSPs invest heavily in data security to ensure the protection of their users’ information. And companies that use the cloud while making cybersecurity a priority can achieve safer operations compared to an on-premise IT environment because they have the additional support of a CSP, on top of their own protective measures.

We go into more details on cloud security and debunk other cloud myths in our article.

8 cloud computing benefits

Cloud computing can help your business save time and money by boosting productivity, improving collaboration, providing flexibility, scaling with growth and much more. Here are some of the top benefits you can expect from cloud services.

Cost savings

Cloud computing solutions allow you to only pay for the resources and services your business needs. Unlike buying and maintaining your own IT hardware, there are no major upfront investments and no maintenance costs. While prices for cloud services are still a monthly or annual expense, these costs are predictable and easy to manage with a reliable CSP.

Flexibility

You can choose from a variety of cloud-based services to target the specific needs of your business. Whether you need data storage, unified communications or virtual collaboration tools, cloud computing has you covered. The best part is that these solutions are available anywhere as long as your employees have a device that can access the Internet. This makes cloud computing a perfect fit for most hybrid or remote work models.

Collaboration

While cloud computing offers collaboration tools, it encourages teamwork by design. It automatically saves and maintains consistency between different users. For example, when colleagues work on a single file, any changes are automatically synced between all users and the team will always have access to the latest version. By providing a central web-based hub, cloud services make virtual collaboration more convenient and efficient.

Loss prevention

Backing up data is key to avoiding critical data loss from natural disasters, power surges or cyber attacks. With in-house hardware and equipment, this has to be done manually. But with cloud computing, your data is backed up automatically, making it a much more reliable method of loss prevention. Not only does it make data loss less likely, it also improves your business’ disaster recovery capabilities.

Automatic updates

Because cloud computing services are managed by a CSP, you don’t have to worry about manually updating any hardware or equipment. Your CSP will automatically update your cloud services for you. This makes it better protected against the latest cybersecurity threats, while also further optimizing its solutions. And, best of all, you don’t have to do a thing to ensure your cloud services are up to date.

Competitive edge

The right cloud computing services can help your business increase its overall efficiency and productivity—giving you a competitive edge. Cloud-based services automate many tasks. Manual processes like backing up data and version control have become a thing of the past as the cloud automatically takes care of them. This frees up your employees to focus on other more important tasks, leading to increased efficiency. Furthermore, with cloud-based tools at their fingertips, your employees will have what they need to collaborate and work from any location.

Sustainability

Did you know that cloud computing is more sustainable than using your own IT hardware for data storage? Cloud infrastructure supports virtual services, rather than physical products and hardware. This can cut down on paper waste, prevent the disposal of old hardware (which may contain toxic substances like lead and mercury) and even reduce vehicle emissions given that it allows employees to work from anywhere.

Scalability

Last but not least, cloud computing is scalable. As a SMB owner, you want to plan ahead for future growth, and acquiring solutions that can grow alongside your business is always ideal. If your business has more resources to spend, you can simply scale up your cloud solutions and apps. And, if things are looking uncertain, you can always scale down and save. This makes your business more agile and able to quickly respond to change.

Take a leap into the cloud
By transitioning to a cloud-based service, you’ll be providing your employees with tools, programs and applications that enhance their overall productivity and their ability to collaborate virtually. Combined with low upfront costs, scalability and flexibility, picking up a cloud computing solution is an easy win for many SMBs.

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