By Definition
In simple terms, cloud computing is an internet-based way of storing, managing, and accessing data and applications, rather than using your computer's local hard drive or on-premise servers. The public cloud services market is a testament to its adoption, with Gartner projecting it to grow 20.4% in 2024 to a total of $675.4 billion.¹
Let’s keep it simple and start with the applications required to run your business, such as:
The Traditional Approach
Traditionally, these systems were all housed on physical servers. These servers were often located in a dedicated room in your office building or in a data centre, requiring significant investment in power, cooling, networks, and storage.
These servers ran complex software stacks and required a team of experts to install, configure, and maintain. Ongoing software or hardware upgrades were also necessary, a process that often led to incompatibility issues, downtime, and a diversion of resources from more strategic work. This entire complex process can be simplified through a planned Cloud Migration.
In the Cloud
Cloud computing removes the need for businesses to run their own servers. The computing power once provided by individual servers is now delivered as a service over the internet by large-scale cloud providers.
Providers such as Microsoft Azure, Google Cloud, and Amazon Web Services (AWS) operate vast data centres in multiple locations, housing hundreds of thousands of servers. These servers work together to create enormous pools of computing resources that can be divided into smaller chunks to meet exact company or individual demands.
The Shift to Cloud-Based Software
Software applications are also moving to the cloud. The shift from traditional software models to the internet has steadily gained momentum, and today, some of the largest cloud application platforms are already running millions of businesses. With the rapid emergence of mobile devices and apps, cloud applications enable new ways for businesses to collaborate and access their information from anywhere. Planning this transition is a core part of a successful Cloud Strategy.
Pay for What You Use
A business rents these computing resources from the service provider, paying only for what they use. This shifts technology spending from a large, upfront capital expenditure (CapEx) to a predictable, operational expenditure (OpEx).²
The best way to think about it is like electrical power. For example, we buy and pay for the electricity we use from a utility company; we do not need to run our own power generators. The same principles apply to cloud computing.
In Summary
The most important thing about cloud computing is that it lets business owners and their IT managers focus on what’s important—driving value and innovation—and not on running and managing servers. Cloud computing reduces IT-related costs, offers new opportunities for business process automation, and allows for greater mobility and team collaboration. Understanding how to apply these benefits to your specific business is the crucial next step, and our team is here to help you build that strategy.
