What is the impact of cloud computing on business?

Cloud computing allows users to access data, applications and services over the internet. It enables businesses to deliver services such as servers, storage, databases, networking and software over the internet, rather than via in-house hardware. 

Cloud technology appears to be relatively new but, as is usually the case in computer science, the foundations of this revolutionary development has been decades in the making. However, the cloud computing services businesses and individuals use today have come a long way since IBM’s first attempt to virtualise an operating system for multiple users in 1967. 

Different types of cloud computing

As computing resources continue to evolve, so too has cloud services. There are multiple different types of cloud computing from multiple different service providers, all aiming to upgrade existing business operations.

Software-as-a-service (SaaS)

These products are accessible from a browser on any device and store data online. SaaS is a rapidly growing market, valued at $237.48bn in 2022, and generally tends to operate on subscription-based pricing.

Some popular SaaS products include Salesforce, a CRM tool which uses customer data and artificial intelligence to identify leads, and Zoom, a cloud-based platform for audio and video conferencing which boomed during the Covid-19 pandemic.

Infrastructure-as-a-service (IaaS)

IaaS products provide computing infrastructure, such as app development and website hosting, which is completely virtualised and managed over the internet. 

IBM Cloud Bare Metal Servers are an IaaS product which are dedicated, single-tenant servers which can be provisioned and used in hourly and monthly billing increments.

Platform-as-a-service (PaaS)

This cloud computing model provides the virtual resources a business needs to build, deploy, and launch their own software applications.

One of the first ever cloud-based technologies was a PaaS product – Amazon Web Services (AWS) launched its public cloud in 2002.

File sharing and data storage

Many businesses and individuals share large files through cloud storage and use cloud computing for data storage space. Many of these models are pay-as-you-go, so usage can be scaled depending on current need.

Google Drive is one of the leaders in this sector, allowing users to share their files in the Google cloud. The platform also integrates with other Google and Microsoft Office tools, allowing easy collaboration for remote workers.

Big data analysis

Companies who use big data need a large amount of storage and processing power – both of which can be found in the cloud.

Big data is a lucrative sector as more and more businesses use it to customise their services to their customers. By 2026, the market is poised to be worth $273.4bn.

Cybersecurity

Using the cloud to protect sensitive data from cyber attacks has become increasingly common, as companies who position themselves in the cloud continue to attempt to outsmart hackers.

Zscaler oversees 200 billion transactions and intercepts 100 million threats per day by running a zero-trust platform which safely connects users, devices or applications for collaboration and remote work. 

What are the advantages of cloud computing? 

There are many benefits of cloud computing for businesses, as suggested by the range of cloud products available and the value and growth of the market outlined above.

Here are some specific advantages the adoption of cloud computing services can have on business operations:

• Flexibility: The amount of cloud infrastructure a company requires can be easily modified depending on their requirements. This scalability reduces the need for hardware and IT infrastructure investment, as the size of cloud computing resources can increase and decrease based on customer demand. This is particularly useful for small businesses as they can reduce their expenses with smaller allocations when needed whilst still having access to the same technology as larger businesses in their field.
• Cost-effective options: When employees are able to access and share information remotely and work from anywhere, businesses are able to spend less on office space. Physical hardware isn’t necessary when the cloud is used, so businesses make cost savings on maintenance of these items and energy costs associated with running them.
• Business intelligence: Access to a large amount of customer data can give businesses valuable insights to sales patterns and customer behaviour, enabling them to tailor their service in an effective way for maximum impact. Cloud computing is a relatively cheap way for businesses to achieve this.
• Collaboration: Team members within organisations are more able to collaborate and communicate in real-time, particularly when working remotely. Data can be stored in the cloud which can be accessed on-demand anywhere, at any time, and on any device, allowing colleagues in multiple locations to be able to work together efficiently.
• Security: With some cloud platforms providing cybersecurity, safety measures such as encryption or multi-factor authentication can guard against cyber attacks and help to reduce the risk of data breaches. By storing information in the cloud and not on physical hardware in-house, companies are also able to protect against threats such as fires or floods.

What are the disadvantages of cloud computing?

As with anything, cloud computing does come with potential downsides. Businesses should keep these in mind when committing to cloud technologies, and decide for themselves whether the ‘pros’ outweigh the ‘cons’.

Disadvantages of cloud computing can include:

• Downtime: As cloud computing services are accessed through the internet, if there’s an outage or weak internet connection it can lead to downtime for remote employees and an inability to progress on any work that requires information stored in the cloud.
• Cyber attack vulnerability: Hackers are always finding new ways to infiltrate company data, and as cloud service providers have risen in popularity, so have the number of cyber attacks targeting cloud IT infrastructure. Between 2020 and 2022, 98% of organisations experienced at least one cloud data breach.
• Vendor lock-in: When a company chooses to use one cloud vendor, switching to another one can prove difficult. This can be due to switching costs and large amounts of data that is difficult to migrate.
• Extra costs: As businesses grow and their cloud needs change, extra costs may occur when they need to transfer data or utilise more of the cloud.

What does the future of cloud computing look like?

The Flexera State of the Cloud Report surveyed 750 cloud decision makers from around the world and found that organisations embrace the multi-cloud (using a cloud environment from more than one provider at the same time), with 72% of those surveyed already using a hybrid cloud – one which combines an in-house data centre (private cloud) with a public cloud (one which is provided by a third party).

According to a report by Gartner Research, in 2027 ‘cloud will be the pervasive style of computing’. While most people think of the cloud as a technology platform, it will become ‘not only a technological approach for delivering applications, but will also serve as the key driver of business innovation’. This suggests the future of digital transformation within workplaces will have cloud-based software as a cornerstone of all business processes.

Get ahead of the cloud computing curve

With cloud computing set to pave the way for a new era of information technology, having the up-to-date skills and knowledge of this market will set you apart from the crowd.

On Abertay University’s 100% online MSc Computer Science, you will be prepared for a successful future. Developed based on industry needs, you will gain the skills that are in-demand with employers. The ‘Emergent Technologies’ module in particular will enable you to critically appraise next-generation technologies and their impact on society, and will bring a deeper awareness of cloud computing alongside the Internet of Things (IoT) and decentralised systems.

With six starts a year and the opportunity to study either full-time or part-time, this degree can be studied at a time that suits you.