Cloud

Catalysts for Cloud Migration: Why Your Business Should Make the Move

Why Should Your Business Migrate to the Cloud?

Moving to the cloud demands significant investment, effort, and time due to its costliness and labor-intensive nature. In other words, it demands extra finances. At the same time, for many technical specialists, the language of business sounds like a foreign one, complicating communication between the development team and the financial department of your company.

That’s why any successful transformation always starts with clearly defined business results that are understandable to all participants in the process.

So, what advantages does cloud migration bring to the business?

Cost Savings

When it comes to the benefits of migrating to the cloud, the first thing that comes to mind is the financial aspect. This is the most straightforward business outcome for many business owners, although not the only one.

In simple terms, the financial motives for cloud migration boil down to:

  1. Increasing revenue.
  2. Reducing expenses.

How does this play out in practice?

Cloud computing can reduce costs related to hardware and software, data center setup, and its operation. Expenses for servers, continuous power for operation and cooling, as well as IT specialists to manage the infrastructure, can quickly add up. Closing a data center is often referred to as “getting out of the datacenter business.”

Additionally, you avoid expenses for software updates and purchasing new equipment.

The cloud can create opportunities for offering new products to customers or delivering existing products in a new way. For example, a regular fitness center introduces online workouts accessible through a subscription-based mobile app. Users can join live sessions or access a library of recorded workouts, creating a new stream of revenue beyond the traditional gym visit.

Cloud migration can also increase revenue from existing customers. For instance, an e-commerce company enhances its customer experience by implementing a cloud-based recommendation mechanism. By analyzing customer behavior and preferences, the platform provides personalized product recommendations, leading to increased sales and profit growth.

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Flexibility

Quickly adapting to market changes can help a business retain existing customers or gain market share from competitors.

Cloud technologies can significantly speed up product development. For example, Azure DevOps offers engineers a set of tools to accelerate: Azure Repos for managing code versions, Azure Test Plans for automated testing of ready solutions, Azure Pipelines for deploying software for applications in different environments.

Reducing time-to-market can motivate a manager to allocate budget for IT transformation.

Changes in the operational needs of a company often create a demand for new IT services or the scaling of existing services. Purchasing and installing new hardware and virtual resources can take weeks. After migrating to the cloud, the IT team can set up the necessary resources in a matter of hours.

Globalization

The modern world is global, meaning a large portion of businesses has the potential to enter international markets. Cloud technologies noticeably simplify this process.

Cloud solutions shift the costs of globalization to the cloud provider. Companies can quickly deploy resources in the same region as their customers without the need to purchase and maintain local data centers.

For instance, today, an online store selling products worldwide and interacting with customers in different time zones and languages is not uncommon. In practice, the store can use Azure Bot Service and various features in Azure Cognitive Services, including Translator, Language Understanding (LUIS), QnA Maker, and Text Analytics. This ensures that their customers can get information when they need it, and it will be provided in their language.

Furthermore, cloud computing allow managing the product assortment displayed on the store’s pages, adapting it to geographic tastes, preferences, and the current availability of products.

Operating in global markets imposes additional constraints on businesses due to regulatory aspects, especially in industries like fintech or healthcare. Cloud technologies offer compliance solutions that help clients adhere to regulatory requirements in regulated sectors and global markets.

In other words, cloud providers ensure secure storage and processing of confidential data.

For example, let’s consider an American healthcare service provider that has secured a contract in Europe. European legislation requires their data to remain in each specific country in Europe. Therefore, the American company deploys its software using fully scripted DevOps processes.

Productivity

In our world, it is taken as a given that applications work quickly and without glitches. If such expectations are suddenly not met, it can significantly damage the company’s reputation.

Cloud technologies simplify backup and disaster recovery since data can be mirrored on multiple backup sites within the cloud provider’s network.

One of the most crucial functions of IT is ensuring that corporate data is never lost, and applications remain accessible despite server failures, power outages, or natural disasters. You can protect your data and ensure the possibility of recovery by creating a backup in the cloud.

Carbon Footprint

Today, it is crucial to build a responsible business that cares for the environment. Cloud computing can help your organization reduce carbon emissions, use resources more efficiently, and minimize environmental impact. Statistics show that migrating to the cloud reduces carbon dioxide emissions into the ecosystem by 98%.

If you doubt the importance of this point, consider government initiatives:

  • The UK government aims to achieve net-zero greenhouse gas emissions by 2050.
  • The US government plans to achieve net-zero emissions by 2050.
  • The European Climate Law aims to reduce greenhouse gas emissions by 55% by 2030.
  • The European Union’s goal is to achieve net-zero emissions by 2050.

Of course, these are not the only business drivers that should motivate you to migrate to the cloud. However, I hope you have already made the decision that is right for you.

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FAQ

Why should my business consider migrating to the cloud?

Cloud migration offers numerous benefits, including cost savings, increased productivity, global expansion opportunities, and environmental sustainability.

Is cloud migration a complex and costly process?

Yes, it can be. Transitioning to the cloud requires additional resources, knowledge, and time. However, the long-term benefits often outweigh the initial investment.

How does cloud migration impact business finances?

Cloud migration can increase revenue by offering new products, reducing expenses through cost-effective technology, and enhancing customer experiences, ultimately contributing to business growth.

What advantages does cloud migration bring to global businesses?

Cloud solutions simplify global expansion by shifting costs to the cloud provider, facilitating seamless deployment in regions where customers are located, and enhancing language-specific customer interactions.

How does cloud migration impact productivity and application performance?

Cloud technologies streamline backup and disaster recovery, ensuring applications work efficiently, reducing glitches, and protecting corporate data during server failures or other disruptions.

Is it necessary for businesses to comply with regulations when adopting cloud technologies?

Yes, especially in regulated industries like fintech or healthcare. Cloud technologies offer compliance solutions to meet regulatory requirements, ensuring secure storage and processing of confidential data.

How can I get started with cloud migration for my business?

Begin by consulting with experienced cloud experts. Assess your business needs, set clear objectives, and create a comprehensive migration plan to unlock the full potential of cloud technologies.
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