Despite its growing influence, many specifics of cloud computing are not relatively well understood even now. Among them, and of incredibly prime importance, is the question of economic benefit that cloud computing can offer to businesses?

Cloud computing has come a long way since the time when it was just seen as an amalgamation of data center resources that provided backup services for storage needs. Modern day cloud computing platforms are far more diversified than that. Just take a look at Amazon Web Services, the biggest cloud provider there is. It now offers more than 180 cloud based services related compute, storage, hosting, big data and more.

Firms are now using cloud resources to not just store their data, but to build and host their apps and software directly in the cloud. These solutions have evolved even more with the advent of congruent technologies like containerization and Kubernetes, making it incredibly easier for firms to build scalable and flexible solutions. So the question of economic benefit that cloud computing offers to businesses is complex.

To understand this benefit, we need to take a look at the tangible ways a business can take advantage of leveraging cloud based resources in today’s time and only then will we be able to put things in much better perspective.

Economic Benefit of Cloud Computing for Businesses

For most businesses operating these days, here are some of the most important economic benefits that cloud computing offers:

Lower Cost Of Entry And A Level Playing Field:

In previous times, small businesses couldn’t compete with larger ones because of a resource gap that amplified itself due to low resource flexibility. For e.g. if a certain business model required firms to offer a high amount of redundancy to cater to moving demand, it would have had to manage these requirements through an in-house resource. For larger firms with big resource banks, this was easy to do, but smaller firms couldn’t cater to it and hence they couldn’t compete on the same plane with larger firms on such business models.

But due to the advent of cloud computing resources, even small businesses can deploy such highly flexible resources whenever they want and however they want. For e.g. if a small firm develops a game that faces a high influx of users on weekends, then it can acquire latent cloud capacity to deal with it, and pay for only what it uses and not for any costs related to keeping redundant resources at standby.

This model has allowed smaller businesses to use the best technologies like Power BI, Big Data, AI, high amount of storage etc. to scale and operate their businesses on the same pane as larger firms. This is a real time economic benefit of cloud resources that is quite evident in today’s world, especially in the fields where resource dependency is central to business functionality like app development, gaming and more.

The Turnstile Model:

Credit goes to AWS for introducing this, as it single handedly altered the way firms viewed cloud as a resource. The turnstile pricing model allows firms to focus on growth and not worry about costs, as the latter will only be incurred if there is a transaction. The CAPEX costs incurred by businesses, whether big or small, has been tremendously reduced thanks to the cloud.

If you have someone on your team who has undergone Cloud computing bootcamp training, then he/she would certainly guide your firm on how best they can utilize this amazing pricing strategy offered by AWS. By placing the pricing turnstile at the farthest point of a transaction, it has allowed businesses to utilize functionalities that were previously off limits to them due to cost restraints.

For e.g. let’s assume you have a feature on your website that includes a calculator. This website and all of its services are being hosted on AWS. Now, AWS will not charge you until someone actually does a calculation on that calculator, implying that only when a certain business function is useful, will you be required to pay a price. Firms of all sizes have reaped incredible economic benefits from this pricing model as it enables them to place resources in their business without worrying about high expenses being incurred.

Lower Operational Costs Related To Security & Resilience:

With cyber-attacks becoming increasingly common, managing a top of the line security infrastructure would be imperative if you had an in-house storage and compute site to manage your business functionalities. More than that, every time you required a business security related solutions, you would have to acquire, install, maintain and upgrade it fully by yourself.

Through the cloud, all of this becomes redundant as security is weaved into cloud resources that you utilize. From managing identity and access to running sensitive data storage operations, cloud computing solutions offers businesses with better security at a highly reduced cost.

For e.g. if a business was hit by a ransomware attack, it would have had to either pay the ransom amount of get its files back or spend a huge amount of money on recovery related operations. However, if the same business was utilizing the clouds for its business requirements, it wouldn’t have to worry much about recovery as cloud solutions conventionally store multiple copies of important data files that can be recalled whenever required.

Managing Cloud Solutions For Optimized Economic Benefit:

Despite its incredible cost advantages, there have been many instances in recent times where businesses shifted to the cloud and the overall cost of managing things there ballooned out of control as businesses slowly started eating up resources at phenomenal rates.

So it’s imperative that even if there are incredible economic benefits to the cloud, one knows how to sanction and manage things in the best possible manner to stop such a scenario from arising. One way to accomplish this is to ensure that your team that’s managing the cloud gets enrolled in cloud computing bootcamp classes that teach the best approaches and practices to manage cloud computing based operations.